As research on the labour market behaviour underlying the Canadian service economy progressed, it became apparent that a conceptual understanding of the rise, transformation, and expected further development of the service economy was necessary to understand employment and labour adjustment issues. Chapter 2 provides such a conceptual mapping based on recent theoretical and empirical work in this field. In chapter 3, using a multitude of published and unpublished time series and cross-sectional data, the evolution of employment in Canadian service industries is analysed, thereby indirectly testing some of the competing hypotheses discussed in chapter 2. Chapter 4 provides a further analysis of employment changes in the service economy by examining the changing nature of service sector jobs in terms of changing technologies, occupations and skills. How technological and other changes have intermediated this process of employment adjustment historically will also be investigated. Chapter 5 takes a closer look at the structure, function and performance of labour markets in the Canadian service economy. Using two case studies developed by the author, chapter 6 illustrates common labour adjustment and industrial relations problems in the service sector. These case studies examine two business organizations operating in medium and high technology fields. Finally, chapter 7 provides an outlook on expected future manpower issues.