Employment Composition: Primary, Secondary And Tertiary Sectors
Economics notes
Employment Composition: Primary, Secondary And Tertiary Sectors
➡️ Increase in employment opportunities: The employment composition of an economy is an important factor in determining the level of employment opportunities available. The primary sector, which includes agriculture, forestry, fishing and mining, provides employment to a large number of people. The secondary sector, which includes manufacturing, construction and utilities, also provides employment opportunities. Finally, the tertiary sector, which includes services such as finance, healthcare, education and hospitality, provides employment to a large number of people.
➡️ Increase in economic growth: An increase in employment opportunities in the primary, secondary and tertiary sectors of an economy can lead to an increase in economic growth. This is because an increase in employment opportunities leads to an increase in the production of goods and services, which in turn leads to an increase in the GDP of the economy.
➡️ Increase in income levels: An increase in employment opportunities in the primary, secondary and tertiary sectors of an economy can also lead to an increase in income levels. This is because an increase in employment opportunities leads to an increase in the wages and salaries of workers, which in turn leads to an increase in the disposable income of households.
What are the primary, secondary, and tertiary sectors of employment composition?
The primary sector includes jobs related to natural resources, such as agriculture, mining, and fishing. The secondary sector includes jobs related to manufacturing and construction. The tertiary sector includes jobs related to services, such as healthcare, education, and finance.
How has the employment composition shifted over time?
In developed countries, there has been a shift from the primary and secondary sectors to the tertiary sector. This is due to technological advancements and globalization, which have led to increased productivity and outsourcing of manufacturing jobs. In developing countries, there is still a significant portion of the population employed in the primary sector, but there is also growth in the secondary and tertiary sectors.
What are the implications of changes in employment composition for the economy?
The shift towards the tertiary sector can lead to higher wages and greater economic growth, as services tend to have higher productivity and value-added. However, it can also lead to income inequality, as those in the primary and secondary sectors may not have the same opportunities for wage growth. Additionally, a reliance on the tertiary sector can make the economy vulnerable to external shocks, such as a decline in demand for services.