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Visakhapatnam: The services sector in Andhra Pradesh is employing 7.8 million people, with a share of 31.8 per cent in the employment pool, surpassing India’s average of 29.7 per cent, according to NITI Aayog’s 2025 report "India's Services Sector: Insights from Employment Trends and State-Level Dynamics."Wholesale and retail trade, which includes shops, markets and stores, leads the way in AP as the biggest employer. This sector provides 31.4 per cent of all service jobs, up from 28.1 per cent in 2011–12. Out of the state's roughly 7.8 million service workers, about 2.4 million people work in trading and retail businesses alone.Cities and towns in Andhra Pradesh have seen the biggest growth in service jobs. About 61.4 per cent of urban workers are in services, compared to 57.4 per cent back in 2011–12. Employment in rural services has also grown, with service jobs rising from 17.6 per cent to 21.7 per cent during the same period.Currently, 35.6 per cent of male workers are in services, while female participation has surged to 25.6 per cent from 18.3 per cent in 2011–12.The fastest-growing sector within services is transportation and storage. It includes truck drivers, warehouse workers, delivery services and logistics companies. Jobs in this sector have grown from 11.9 per cent to 15.7 per cent.Education comes next at 8.6 per cent, which is a drop from 9.3 per cent back in 2011–12. Hotels, restaurants and food services now account for 8.4 per cent of jobs, up from 6.5 per cent earlier.Government jobs related to public administration and defence employ 7.2 per cent of people, down from 8.0 per cent earlier. Other miscellaneous services account for 6.9 per cent, healthcare and social work employ 5.8 per cent, and the information technology and communication sector provide 5.0 per cent of jobs, growing steadily from 3.7 per cent in 2011–12.Smaller but strategically important sectors include employment in households 3.6 per cent, financial and insurance services 3.1 per cent, up from 2.6 per cent, administrative services (1.5 per cent), and professional and scientific services (1.3 per cent, up from 1.0 per cent).Real estate and rental services account for just 0.7 per cent, a decline from 1.5 per cent in 2011–12. Share of arts, entertainment and recreation is 0.8 per cent, down from 0.9 per cent.The Niti Aayog report highlights specific opportunities in AP’s major cities. Visakhapatnam and Vijayawada are seen as cities with great potential to create more jobs in areas like port and shipping services, IT companies, and support services for food processing industries.The report suggests that these cities need better internet connectivity, roads and other basic facilities to help these businesses grow.Top Five Sectors:1. Wholesale and retail trade: 31.4% (up from 28.1% in 2011-12)2. Transportation and storage: 15.7% (up from 11.9%)3. Education: 8.6% (down from 9.3%)4. Accommodation and food services: 8.4% (up from 6.5%)5. Public administration and defence: 7.2% (down from 8.0%)Mid-Tier Sectors:1. Other services: 6.9%2. Human health and social work: 5.8%3. Information and communication: 5.0% (up from 3.7%)4. Household activities: 3.6%5. Financial and insurance services: 3.1% (up from 2.6%)Emerging and Lagging Sectors:1. Administrative services: 1.5%2. Professional and scientific services: 1.3% (up from 1.0%)3. Arts, entertainment and recreation: 0.8% (down from 0.9%)4. Real estate: 0.7% (down from 1.5%)
