Changes in Economic Sectors (Edexcel IGCSE Geography)

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Bridgette

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Causes of Change in Employment

  • As countries develop, the numbers of people employed in each economic sector changes 
  • This can be seen in the Clark Fisher Model and in the pie charts below
  • In developing countries, such as Kenya, more people are employed in the primary sector because: 
    • Often, a significant percentage of the rural population are subsistence farmers
    • The countries depend on raw material exports to developed and emerging countries
  • In emerging countries, such as China, the dependence on secondary economic activity increases because:
    • Factories are located in emerging countries due to lower costs 
    • More raw materials may be available in these countries
    • Government policies aim to attract companies to locate there
  • In developed countries, such as the UK, there is dependence on tertiary economic activities because:
    • Education levels are higher so people want tertiary sector jobs, which are, on average, higher paid than secondary and primary jobs
    • Deindustrialisation means there are fewer jobs in secondary economic activities
    • Mechanisation means there are fewer jobs in primary and secondary economic activities

employment-by-economic-sector

Employment by economic sector

  • Factors which affect the numbers of people employed in the different economic sectors include:
    • Availability of raw materials
    • Globalisation
    • Technology
    • Demographic changes
    • Government policies

Reasons for Changes in the Numbers of People Employed in Economic Sectors

Reason

 Explanation

Availability of raw materials
  • Raw materials may have run out or be economic unviable to obtain
  • Crop production and livestock may be reduced due to drought, flood, pest/disease or soil erosion
  • Improvements in technology may reduce the amounts of raw materials needed
Globalisation
  • Transnational corporations (TNCs) have factories and offices in many countries 
  • Lower costs tend to be in developing and emerging countries 
  • The internet and improved communication mean that service activities such as call centres can be located anywhere in the world
  • Industries such as textiles and steel manufacturing are increasingly located in emerging countries
Technology
  • There are fewer jobs in farming, mining and many factories due to mechanisation
  • The Internet means companies can manage factories and offices located in many different countries
  • Improvements in transport have reduced the friction of distance
Demographic changes
  • An increasing population means that there is a greater demand for products and services 
  • People have more disposable income to spend on leisure and other services
  • The demand for goods and services is affected by the age structure of the population
  • An increasing population means there are more workers available
Government policies
  • Government policies target particular economic activities to locate in their country using tax incentives, infrastructure improvements (new railways, airports) and grants/cheap rent

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Bridgette

Author: Bridgette

After graduating with a degree in Geography, Bridgette completed a PGCE over 25 years ago. She later gained an MA Learning, Technology and Education from the University of Nottingham focussing on online learning. At a time when the study of geography has never been more important, Bridgette is passionate about creating content which supports students in achieving their potential in geography and builds their confidence.