I believe lot of "service" jobs are fundamentally make up work. Or not actually productive. Just there because it can be afforded. Or someone decided that it is "needed". Some amount of it produces net negative value. Some neutral and lot probably value we could even manage without it. Actual productive value is probably not that big part.
Now replace all that and you still produce same overall. Not more actual physical stuff.
I agree, but as long as we're measuring GDP, it's catastrophic.