Changes in Economic Sectors (Edexcel IGCSE Geography)

Causes of change in employment

• As countries develop, the number of people employed in each economic sector changes 

• This can be seen in the Clark-Fisher Model and 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

  • there is a higher demand for services because people have more disposable income

• Factors which affect the numbers of people employed in the different economic sectors include:

  • availability of raw materials

  • globalisation

  • technology

  • demographic changes

  • government policies

Availability of raw materials

• Raw materials may have run out or be economically 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 change

• 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)

  • grants/cheap rent

• International treaties impact what countries can trade

• In communist countries, governments have much more control over industry types and location