Changing Economies » Employment Structure Changes

What you'll learn this session

Study time: 30 minutes

How employment structures change as countries develop
The four economic sectors and their characteristics
Clark-Fisher Model of employment change
Causes of employment structure changes
Case studies of employment structure changes in the UK and China
Impacts of employment structure changes on people and places

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Employment Structure Changes

As countries develop, the types of jobs people do change dramatically. This shift in where people work is called the employment structure and it's a key indicator of a country's economic development.

Key Definitions:

Employment Structure: The distribution of a country's workforce across different economic sectors.
Economic Development: The process by which a country improves the economic, political and social well-being of its people.
Deindustrialisation: The reduction in industrial activity, especially manufacturing, in a country or region.
Globalisation: The increasing interconnectedness of countries through trade, investment, technology and cultural exchange.

The Four Economic Sectors

🌾 Primary Sector

Involves extracting raw materials from the earth or sea. This includes farming, fishing, forestry and mining. These jobs are common in developing countries and rural areas.

Examples: Farmers, miners, fishermen, forestry workers

🏭 Secondary Sector

Involves manufacturing and processing raw materials into products. This includes factory work, construction and energy production.

Examples: Factory workers, builders, car manufacturers, food processors

💼 Tertiary Sector

Involves providing services to people and businesses. This is the largest sector in developed countries.

Examples: Teachers, doctors, shop workers, transport workers, bankers

💻 Quaternary Sector

Involves information technology, research and development and knowledge-based services. This is the fastest-growing sector in highly developed economies.

Examples: IT specialists, scientists, researchers, consultants

The Clark-Fisher Model

The Clark-Fisher Model explains how employment structures change as countries develop economically:

🌁 Stage 1: Pre-industrial

Most people work in the primary sector (farming, fishing, etc.). Few people work in secondary or tertiary sectors.

Examples: Many countries in Sub-Saharan Africa

🏭 Stage 2: Industrialising

The secondary sector grows as manufacturing develops. Primary sector decreases as farming becomes more efficient. Tertiary sector begins to grow.

Examples: China, Brazil, Mexico

💻 Stage 3: Post-industrial

Tertiary and quaternary sectors dominate. Primary and secondary sectors employ a small percentage of workers.

Examples: UK, USA, Japan, Germany

Why Employment Structures Change

Economic Factors

Technological advancement: Automation reduces the need for manual labour in primary and secondary sectors.
Globalisation: Manufacturing moves to countries with lower labour costs.
Rising incomes: As people get richer, they spend more on services (holidays, restaurants, entertainment).
Government policies: Investment in education and training helps develop tertiary and quaternary sectors.

Social Factors

Education levels: Better education allows people to work in more skilled jobs.
Changing consumer demands: People want more services as their basic needs are met.
Urbanisation: As people move to cities, they leave agricultural jobs behind.
Changing lifestyle expectations: People expect better working conditions and more interesting jobs.

Case Study: UK Employment Structure Changes

The UK has experienced dramatic employment structure changes over the past century:

1900: Primary sector (30%), Secondary sector (40%), Tertiary sector (30%)
1950: Primary sector (5%), Secondary sector (45%), Tertiary sector (50%)
2020: Primary sector (1%), Secondary sector (18%), Tertiary/Quaternary sectors (81%)

Key changes:

Decline in coal mining and steel production in the 1970s-1980s
Manufacturing moved overseas (e.g., textiles to Bangladesh)
Growth in financial services in London and other cities
Expansion of the tech sector, especially in areas like Cambridge and Manchester
Growth in tourism, hospitality and retail sectors

Impacts: High unemployment in former industrial areas (e.g., Northeast England, South Wales), growth of service jobs in cities, increased regional inequality.

Case Study: China's Changing Employment Structure

China provides a dramatic example of rapid employment structure change:

1980: Primary sector (69%), Secondary sector (18%), Tertiary sector (13%)
2020: Primary sector (25%), Secondary sector (28%), Tertiary sector (47%)

Key changes:

Massive rural-to-urban migration (over 300 million people)
Growth of manufacturing in coastal regions (e.g., Shenzhen, Shanghai)
Recent growth in technology and service sectors
Government policies to become "the world's factory"
Recent shift towards developing domestic service and technology sectors

Impacts: Rapid urbanisation, improved living standards, environmental problems, regional inequality between coastal and inland areas.

Impacts of Employment Structure Changes

👍 Positive Impacts

Higher wages in tertiary and quaternary sectors
Better working conditions (safer, less physical labour)
More opportunities for women and flexible working
Reduced environmental impact compared to heavy industry
Development of new skills and technologies

👎 Negative Impacts

Unemployment in areas dependent on declining sectors
Skills mismatch (workers trained for jobs that no longer exist)
Regional inequality (some areas boom while others decline)
Loss of traditional industries and cultural identity
Increased job insecurity (e.g., zero-hour contracts)

Managing Employment Structure Changes

Countries can manage the impacts of changing employment structures through:

Education and training: Helping workers develop new skills for growing sectors
Regional development policies: Investing in areas affected by deindustrialisation
Infrastructure development: Building transport and digital networks to attract new businesses
Support for entrepreneurs: Helping people start new businesses in growing sectors
Social safety nets: Providing support for those affected by job losses

Key Points to Remember

Employment structures change as countries develop, with a general shift from primary to secondary to tertiary/quaternary sectors.
These changes are driven by technological advancement, globalisation, rising incomes and changing consumer demands.
Changes bring both opportunities (better jobs, higher wages) and challenges (unemployment, regional inequality).
Different countries are at different stages of this transition, with developed countries having mostly tertiary/quaternary jobs and developing countries having more primary and secondary jobs.
Governments can manage these changes through education, investment and social policies.

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