Classification of different industries (Cambridge (CIE) IGCSE Geography): Revision Note

A country's economy is the system by which resources, goods, land and labour are arranged

All countries face constant challenges to the development, growth and stability of their economies

A country's political system and type of economy will affect the path that a country follows to grow its industries and labour markets

The country's economy directly affects life within that country by:

• Influencing what jobs people can have

• The food people can afford to buy

• The homes people can live in

The way a country's workforce is divided up between the sectors is called a country's employment structure

Employment is divided into 4 sectors, with each representing different types of industries

The primary sector is concerned with the extraction of raw materials from land, sea or air

• Examples include farming, mining, forestry and fishing

Low income countries (LICs) are primarily focused on the primary sector, with most people employed in agriculture and the production of food

• Over the past 20 years, employment in primary sector industries has been declining globally

• It is in the least developed nations where the majority of the workforce is employed in the primary sector

• This is partly due to fewer students attending school and a lack of infrastructure to support manufacturing or service provision 

There are still important primary sectors in some high-income countries, like Norway (oil and forestry) and Australia (wine production).

The secondary sector is concerned with the processing of raw materials and components

• Examples include oil refinement and the manufacture of goods such as vehicles

In middle-income countries (MICs), better technology means fewer workers are needed in farming, and more people can work in factories

• Over the last few decades the number of workers employed in manufacturing has risen

• Many high-income country (HIC) businesses have relocated their production facilities to take advantage of the lower average wage rates in these economies

The tertiary sector is concerned with the provision of a wide range services for consumers and other businesses, such as leisure, banking or hospitality

• It includes a sub-sector called the quaternary sector, which is concerned with the provision of knowledge-focused services related to IT technology, consultancy or research

In the past few years, the tertiary and quaternary sectors have grown in medium income countries

Many businesses are now focusing on providing consumer services

In high income countries, the proportion of the workforce employed in the service sector is high and this is increasing the focus on the quaternary sector

• High-income countries support the expansion of these sectors by using their wealth to finance higher-level training and education

The quaternary sector, or knowledge economy, builds on the tertiary sector (service sector)

It provides specialised services focused on information- and knowledge-based industries

This sector includes IT, research, consulting, and other intellectual activities

It supports and develops service industries, especially digital and tech services

The quaternary sector relies on specialised knowledge and skills, not physical inputs

Examples include

• Computing

• Research and development (R&D)

• Education

• Project management, etc.