The service sector has had the lowest rate of long-term growth in both labor productivity and TFP, and it was the most severely affected by the financial crisis. Labor productivity fell sharply after 1996, and the 2004 value is still 20 percent below the 1996 peak. The decline in TFP is an even-larger 25 percent. However, the sector includes a very diverse set of industries, whose output is notoriously hard to measure, and it includes the banking industry which was severely impacted by the 1997-98 financial crisis. The national accounts division of NESDB supplied a more disaggregate breakdown of the sector’s value added and capital stock that enabled a more detailed examination. The data are available for a period of 1980-2003, but use the pre-2001 industrial classification, Revision 2 of ISIC. Comparable employment data were obtained from the LFS. The identified industries include: (1) transportation and communications; (2) wholesale and retail trade, (3) banking, insurance and real estate, (4) ownership of dwellings, (5) public administration, and (6) other services.