The changes in distribution of sectors with economic development

   ü   The proportions of labour force employed in the different sectors of the economy vary according to the level of economic development.

   ü   In the earlier stages of economic development, the workers from primary sector move to the secondary sector.

   ü    As a result, real incomes continue to rise and there is an increasing demand for services. This leads to movement of workers to tertiary sector from primary and secondary sectors.

The sectors of production

 The numerous and different economic activities in an economy are divided into four major sectors or divisions of production.

Primary sector

   ü  This is the first stage in the process of production.

   ü  The workers in these industries collect raw material for production.

   ü  The raw materials are either extracted or grown.

   ü  The examples of the industries in this sector include agriculture, mining, quarrying, forestry and fishing.

Secondary sector

   ü  This is the second stage in the process of production.

   ü  They transfer raw materials into finished or semi-finished goods.

   ü  Many of these industries consume large quantities of energy and require factories and machinery to convert the raw materials into goods and products.

   ü  Construction industry is included under the secondary sector.

   ü  Examples include car manufactures, garment factory, diamond factory, and carpentry… etc.

Tertiary sector

   ü  This is the third and final stage in the process of production.

   ü  This stage transfers goods to final consumers to complete the process of production.

   ü  The sector is often described as ‘service sector’.

  ü  The services include direct services and indirect services (commercial services).

   ü  Direct services are provided directly to the final consumers. Examples include education and health services, catering services and tourism...etc.

   ü  Commercial services (indirect services) include the services provided to the firms in all the sectors of production. For examples banking, insurance, transport and communication ...etc.

Quaternary sector

   ü  This is the latest addition to the sectors of production.

   ü  The sector is principally concerned with the intellectual services.

   ü  This sector evolves in the developed world and requires a highly educated workforce.

   ü  The Quaternary sector of employment describes research work and the creation of new information. Sometimes described as the knowledge economy.

   ü  According to some definitions, the quaternary sector includes other pure services, such as the   entertainment industry.

   ü  This sector assists the other three sectors with innovation. 

   ü  It includes laboratory science (e.g. computing and biotechnology), creative industries (computer software, animation, new media and brand creation) and areas of finance where success depends upon the continual development of new ideas.