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Unlock This CourseEvery country's economy is made up of different types of jobs and industries. These can be grouped into three main categories called economic sectors. Understanding these sectors helps us see how countries develop and why some are richer than others.
Think about your local area - you'll see farmers growing crops, factories making products, shops selling goods and offices providing services. All of these belong to different economic sectors that work together to create a country's economy.
Key Definitions:
This sector involves getting raw materials straight from nature. It includes farming, fishing, mining and forestry. Workers in this sector might be farmers growing wheat, miners extracting coal, or fishermen catching fish. These activities are often found in rural areas and depend heavily on natural resources and climate.
This sector takes raw materials and turns them into useful products. It includes manufacturing, construction and processing industries. Workers might be making cars in a factory, building houses, or turning wheat into bread. These activities usually happen in industrial areas near cities.
Let's explore each sector in more detail to understand what makes them different and how they contribute to a country's economy.
Primary sector activities are the foundation of all economic activity. Without farmers, miners and fishermen, we wouldn't have the basic materials needed for everything else. However, these jobs often don't pay as much as jobs in other sectors and they can be affected by weather, seasons and natural disasters.
Growing crops and raising animals for food. Examples include wheat farming in East Anglia, sheep farming in Scotland and dairy farming in Devon.
Extracting minerals and resources from the ground. Examples include coal mining in Wales, oil extraction in the North Sea and quarrying limestone in the Peak District.
Managing forests and harvesting timber. Examples include commercial forestry in the Scottish Highlands and sustainable woodland management in the New Forest.
The secondary sector adds value to raw materials by processing and manufacturing them. This sector was crucial during the Industrial Revolution and helped countries like the UK become wealthy. Today, many manufacturing jobs have moved to countries where labour costs are lower.
Making products in factories. Examples include car production in the West Midlands, steel production in Sheffield and textile manufacturing in Manchester.
Building houses, offices and infrastructure. This includes everything from housing developments to major projects like Crossrail in London.
Turning raw food into products we buy in shops. Examples include turning milk into cheese, wheat into bread and potatoes into crisps.
The tertiary sector provides services rather than producing physical goods. This sector has grown rapidly in developed countries and now employs the majority of workers in places like the UK. Service jobs often require more education and skills, which is why they usually pay better than primary sector jobs.
Selling goods to customers. This includes everything from small corner shops to large shopping centres like Westfield in London.
Teaching and training people. This includes schools, universities and training centres that help people develop skills for work.
Looking after people's health. This includes hospitals, GP surgeries and care homes that provide medical services.
The UK's economy has changed dramatically over the past 200 years. In 1800, about 75% of people worked in agriculture (primary sector). During the Industrial Revolution, many moved to factory jobs (secondary sector). Today, over 75% of UK workers are in the tertiary sector, with only 2% in agriculture and 23% in manufacturing and construction. This shows how countries typically develop from primary to secondary to tertiary economies.
As countries develop, the importance of different economic sectors changes. This pattern is so common that geographers have identified it as a key feature of development.
Most countries follow a similar pattern as they develop economically. Understanding this pattern helps explain why some countries are richer than others and what might happen to their economies in the future.
These countries have most workers in the primary sector. Examples include many African countries where farming employs 60-80% of people. Incomes are low because primary products don't sell for much money compared to manufactured goods or services.
These countries are industrialising, with more workers moving to the secondary sector. Examples include China and India, where millions of people have moved from farms to factories. This usually leads to higher incomes and better living standards.
China shows how quickly economic sectors can change. In 1980, 69% of Chinese workers were in agriculture. By 2020, this had fallen to just 25%, while manufacturing grew rapidly. Millions of people moved from rural farms to cities to work in factories making products for export. This shift helped China become the world's second-largest economy and lifted hundreds of millions out of poverty.
Different economic activities locate in different places for various reasons. Understanding these location factors helps explain why certain industries are found in specific areas.
Primary activities are tied to where natural resources are found. You can't choose where to put a coal mine - it has to be where the coal is! Climate, soil quality and access to water are crucial for farming.
Climate, soil, relief and natural resources determine where primary activities can take place. For example, sheep farming in Scotland suits the mountainous terrain and cooler climate, while wheat farming thrives in the flatter, warmer areas of East Anglia.
Good transport connections are essential for getting products to market. Fishing ports need harbours, farms need roads to transport goods and mines need railways or roads to move heavy materials.
Manufacturing industries consider many factors when choosing locations. These have changed over time as technology and transport have improved.
Factories need reliable electricity. Early industries located near coal mines or rivers for power. Today, access to the electricity grid is more important.
Industries need workers with the right skills. Car manufacturers locate where there are skilled engineers, while clothing factories might choose areas with lower wage costs.
Being close to customers reduces transport costs. Bakeries locate in towns and cities, while heavy industries might be near ports for export.
Silicon Valley in California shows how tertiary sector activities can cluster together. High-tech companies locate there because of the skilled workforce from nearby universities like Stanford, the availability of investment capital and the networking opportunities from being near other tech companies. This creates a positive cycle where success attracts more businesses and talent.
Today's global economy faces new challenges that affect how economic sectors develop and where they locate. Understanding these helps explain current economic patterns.
Globalisation has changed how economic sectors operate. Manufacturing has moved to countries with lower costs, while services can now be provided from anywhere with good internet connections.
Products are now made using materials and components from many countries. A smartphone might have parts from dozens of countries before being assembled in China and sold worldwide.
Many service jobs can now be done remotely. Call centres, software development and financial services can operate from anywhere with good internet, leading to new patterns of economic activity.