The usage in the service industries has become an important aspect in the deve-lopment of North Macedonia and it is important in helping boost the economy as it is significant in the GDP, employment, and the overall diversification of the economy (National Statistical Office of North Macedonia, 2023}. According to the National Statistical Office of North Macedonia (2023) and OECD (2019), about fift-y-six percent of the country’s Gross Domestic Product (GDP) came from the ser-vice industry by 2023. This shift towards services is also symptomatic of global trends as more developed countries shift towards services as drivers of growth and innovation (World Bank, 2020). Diversification of this economy through the service industry has also many advantages for North Macedonia. This has the effect of shrinking the economy’s reliance on traditional sectors including agri-culture and manufacturing which are normally volatile to price shocks and chal-lenges from outside the economy (IMF, 2022). A well-developed service sector improves economic diversification and reduces the vulnerability connected with over-dependence on specific sectors (OECD, 2019; World Bank, 2020). Further, the service sector is also very effective in encouraging innovative activities as well as technology. Industries like ICT, finance, tourism and retail industries are vibrant and are always in the process of dynamism of the efficiency of the economy and the competitive advantage (European Commission, 2022; OECD, 2019). Expansion of these sectors not only accounts for contribution to GDP but also improves the quality of services presented to consumers and commercial organizations resulting in better standards of living (ILO, 2023).