🏭 Primary Sector
Activities that extract raw materials directly from the earth or sea. This includes farming, fishing, mining and forestry. These jobs are often found in rural areas and require natural resources.
Economic Sectors and Location » Development and Employment Structure
What you'll learn this session
Study time: 30 minutes
- Understand the three main economic sectors and their characteristics
- Learn how employment structure changes as countries develop
- Explore the factors that influence where economic activities locate
- Examine case studies of economic development in different countries
- Analyse the relationship between development and employment patterns
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Unlock This CourseIntroduction to Economic Sectors and Employment Structure
As countries develop economically, the types of jobs people do and where businesses locate change dramatically. Understanding these patterns helps us see how development affects people's lives and where economic activities choose to set up.
Key Definitions:
- Economic Sectors: The three main categories of economic activity - primary, secondary and tertiary.
- Employment Structure: The proportion of people working in each economic sector.
- Development: The process of improving living standards and economic conditions in a country.
- Location Factors: The reasons why businesses choose particular places to operate.
🏭 Secondary Sector
Manufacturing and construction activities that process raw materials into finished products. Car factories, steel mills and house building all belong to this sector.
The Three Economic Sectors
Every country's economy is made up of three main sectors, each playing a different role in creating wealth and providing employment.
Understanding Each Sector
The balance between these sectors changes as countries develop, creating distinct patterns that geographers can study and predict.
🌾 Primary Examples
Agriculture, coal mining, oil drilling, fishing fleets, timber harvesting, quarrying for stone and gravel.
🏭 Secondary Examples
Car manufacturing, food processing, textile production, steel making, construction, electronics assembly.
💻 Tertiary Examples
Retail shops, hospitals, schools, banks, restaurants, transport services, tourism, government offices.
How Employment Structure Changes with Development
As countries become more developed, their employment structure follows a predictable pattern. This change happens because of improvements in technology, education and living standards.
The Development Pattern
Low Income Countries: 60-80% primary sector, 10-20% secondary, 10-20% tertiary
Middle Income Countries: 20-40% primary, 30-40% secondary, 30-50% tertiary
High Income Countries: 2-5% primary, 20-30% secondary, 65-75% tertiary
Why This Pattern Occurs
Several factors drive these changes in employment structure as countries develop economically.
Mechanisation in Agriculture: As farming becomes more mechanised, fewer people are needed to produce food. Tractors and combine harvesters replace manual labour, freeing up workers for other sectors.
Rising Living Standards: As people become wealthier, they demand more services like healthcare, education and entertainment. This creates jobs in the tertiary sector.
Industrial Growth: Developing countries often experience rapid growth in manufacturing as they produce goods for export and domestic consumption.
Education and Skills: Better education systems create workers capable of doing more complex jobs in services and high-tech industries.
Factors Affecting Location of Economic Activities
Businesses don't choose their locations randomly. They consider many factors that affect their costs, profits and ability to operate successfully.
🚌 Transport Links
Good transport connections are vital for moving raw materials, finished products and workers. Ports, airports, motorways and railways all influence location decisions.
👥 Labour Supply
Businesses need workers with the right skills. Some industries need highly educated workers, whilst others need large numbers of less skilled workers.
Physical and Human Factors
Location decisions involve weighing up both physical geography and human factors to find the best place for each type of business.
Physical Factors:
- Climate: Tourism needs pleasant weather, whilst some crops require specific temperatures and rainfall
- Natural Resources: Mining must locate where minerals exist, whilst hydroelectric power needs rivers
- Land: Different activities need different amounts and types of land
Human Factors:
- Markets: Businesses want to be near their customers to reduce transport costs
- Government Policy: Tax incentives, grants and planning permissions affect location choices
- Infrastructure: Reliable electricity, water and telecommunications are essential
Case Study Focus: China's Economic Transformation
China shows how rapidly employment structure can change. In 1980, 69% of workers were in primary sector jobs, mainly farming. By 2020, this had fallen to just 25%, whilst secondary sector employment grew from 18% to 28% and tertiary sector jobs expanded from 13% to 47%. This shift accompanied China's rapid economic growth and urbanisation, lifting millions out of poverty but also creating new challenges like pollution and inequality.
Regional Variations in Employment Structure
Even within countries, different regions often have very different employment patterns based on their geography, history and resources.
Urban vs Rural Differences
Cities and countryside typically have contrasting employment structures that reflect their different advantages and characteristics.
Urban Areas: Cities concentrate tertiary sector jobs like finance, retail and professional services. They also host many secondary sector activities like manufacturing and construction. The dense population provides both workers and customers.
Rural Areas: Countryside regions remain dominated by primary sector activities like farming, forestry and mining. However, some rural areas now attract tertiary sector jobs in tourism and recreation.
Case Study Focus: UK Regional Employment
London and the South East have the highest proportion of tertiary sector jobs (over 80%), reflecting their role as financial and business centres. Wales and Scotland have more primary sector employment due to farming and mining heritage. The Midlands retains significant secondary sector employment in car manufacturing and other industries, though this has declined from its peak.
Challenges of Economic Development
Whilst changing employment structure generally indicates development, it also creates challenges that countries must address.
Managing Economic Transition
Countries face several difficulties as their economies develop and employment patterns change.
Unemployment: As primary and secondary sectors decline, workers may struggle to find new jobs, especially if they lack skills for tertiary sector work.
Regional Inequality: Some areas may prosper whilst others decline, creating uneven development within countries.
Environmental Impact: Rapid industrialisation can cause pollution and environmental damage that affects quality of life.
Social Changes: Traditional communities may be disrupted as people move from rural to urban areas seeking employment.
Future Trends in Employment Structure
Technology and globalisation continue to reshape employment patterns, creating new opportunities and challenges for workers and businesses.
🤖 Automation Impact
Robots and artificial intelligence are replacing workers in manufacturing and some service jobs, potentially reducing secondary sector employment further.
🌐 Global Competition
Companies can now locate different parts of their operations in different countries, seeking the best combination of costs and skills worldwide.
Adapting to Change
Understanding these trends helps countries and individuals prepare for future economic challenges and opportunities.
Education and training become increasingly important as jobs require higher skills. Countries that invest in education and infrastructure are better positioned to attract modern industries and create high-quality employment for their citizens.