Changes in Sector Importance
Introduction
Every economy is made up of three main sectors:
Primary sector: extracting natural resources
Secondary sector: manufacturing and processing
Tertiary sector: providing services
Over time, the importance of these sectors changes as countries develop. This shift is influenced by technology, global competition, resource availability, and rising living standards.
Sector Changes in Developed Economies (Example: UK)
1. Decline of the Secondary Sector
Since the 1970s, the UK has seen a major fall in manufacturing.
Many traditional industries like coal, steel, textiles, and shipbuilding shrank.
Reasons include competition from cheaper producers overseas and automation.
2. Rise of the Tertiary Sector
Today, over 75% of workers in the UK are employed in the service sector.
Tertiary activities include finance, retail, tourism, health care, education, IT, and transport.
Services became more important because:
People have higher incomes.
Demand for travel, entertainment, and communication rose.
Businesses need more support services like banking and insurance.
3. De-industrialization
The long-term reduction of the manufacturing sector is called de-industrialization.
Thousands of factory workers lost jobs.
Many struggled to find new jobs in services because:
They lacked required skills.
Service jobs sometimes needed higher education or training.
Some service jobs were lower paid.