This research brief reviews the literature concerning recent trends in the service-producing sector of the economy and to speculate on the implications for higher education. An opening section offers highlights noting key facts and statistics and a general profile of service-producing industries. The first of three sections describes some of the major industries within the service-producing sector such as health services, business services, educational services, legal services, and social services. The second section describes government as a portion of the service-industry noting that in the 1980s federal responsibilities were transferred to state and localities, and that government is the third-largest employer within the service-producing sector. The third section looks at the general characteristics of the service-producing industries and covers areas of growth and characteristics of employment. A side bar section offers brief profiles of other large service industries: transportation, communication and utilities, retail and wholesale trade, and finance, insurance, and real estate. A final section reflects on implications for society as a whole and higher education in particular. Fifteen references are listed. (JB)