Economic Sectors

Economic Sectors

Primary Sector

  • The primary sector involves the extraction of natural resources. Examples include farming, mining, fishing, and forestry.
  • This sector is mostly intensive labour and requires large amounts of capital. However, it’s also characterised by low pay and long hours.
  • Activities in the primary sector are often closely linked to the location of resources. For example, mining operations are location-dependent on mineral deposits.
  • Primary sector activity can also be seasonal, like agriculture which is dependent on weather conditions.

Secondary Sector

  • The secondary sector entails transforming raw materials from the primary sector into finished goods or semi-finished products.
  • This sector includes industries such as manufacturing, construction, and power utilities.
  • Secondary sector activities often entail large scale production which leads to economies of scale.
  • Location in the secondary sector tends to be less tightly constrained by resource access compared to the primary sector. Other factors such as access to markets and transportation may be greater considerations.

Tertiary Sector

  • The tertiary sector involves services rather than tangible products. This can include areas such as retail, hospitality, banking, and education.
  • Job roles in the tertiary sector typically require high levels of specialist knowledge and expertise.
  • The sector is highly competitive, with companies constantly seeking ways to add value through high-quality customer service and innovation.
  • The location of tertiary sector businesses can be very flexible and wide-ranging. Some businesses require physical premises, while others can operate entirely online.

Quaternary Sector

  • The quaternary sector encompasses activities that involve information processing, research and development, and technological innovation.
  • Jobs in the quaternary sector typically include high-skill, knowledge-based roles. These can include roles in IT, biotechnology, and higher education.
  • Unlike the first three, the quaternary sector is relatively new and a sign of a developed economy. It’s also the fastest-growing sector globally, partly due to the rise of the digital economy.
  • These activities can be carried out virtually anywhere, but often locate near centres of research and innovation or where there is a high-skilled workforce.

Quinary Sector

  • The quinary sector involves the highest level of decision making in an economy and includes top executives or officials in government, research, healthcare, education, and non-profit organisations.
  • These roles require a high level of expertise and are key drivers of other sectors in the economy. Investment decisions, funding, and legislation by quinary sector professionals can significantly impact the growth and development of other economic sectors.
  • Quinary activities can take place in many different locations, but there is often a preference for central business districts within large cities, where there is a concentration of power and influence.