ABU NAYEEM MOHAMMED SUYEEB
CONTACT: 01752408560, 01857175686
Chapter 5: Primary, secondary and tertiary industries
Definition and examples of the different sectors
Primary industries are involved in the first stage of the production process. These industries are
the extractive industries and include fishing, mining, and agriculture.
Secondary industries are involved in the second stage of the production process. These are the
manufacturing and processing industries, and include clothing, footwear, and chemicals.
Tertiary industries provide services of all kinds such as banking, health, and education.
Importance of the different sectors
The table below shows the employment figures (percentage of workforce employed) for
Belgium and Ivory Coast
Primary Secondary Tertiary
Belgium 2% 27% 71%
Ivory Coast 60% 10% 30%
In Ivory Coast, the majority of the workforce is the employed in the primary sector. This is
because Ivory Coast is a developing nation, and therefore the primary sector is labour intensive
(The industry uses relatively more labour than machines)
In Ivory Coast, the standard of living is not very high, so there is a low demand for services.
Therefore comparatively less people are employed in the tertiary sector. The workforce is also
less skilled and educated, as the literacy rate is low. As a result a majority of them work in the
primary sector.
In Belgium, a very small proportion of the workforce are employed in the primary sector. This is
because Belgium is a developed nation, and therefore the primary sector is capital intensive, so
less labour is required (the industry uses more machines than labour).
In Belgium, there is a high demand for services, as the standard of living is very high. As a result,
the majority of the workforce are employed in the tertiary sector. Also, the workforce is highly
skilled and educated, and therefore most of the labour is employed in the tertiary sector.
ABU NAYEEM MOHAMMED SUYEEB
CONTACT: 01752408560, 01857175686
Effects of transferring resources from the primary to the secondary sector
The government may decide to switch resources, ex. labour, from the primary to the secondary
sector. This could have the following effects on the economy:
Advantages
• Economic growth: Productivity is usually higher in the secondary sector, and
successfully transferring labour from the primary sector. Ex. agriculture to factory.
• Rise in living standards: Income levels is also higher in the secondary sector. Workers
who can get employed in factories will experience a rise in living standards.
Disadvantages
• Unemployment: It is difficult for primary sector workers to get employed in the
secondary sector, as such labour tends to be immobile occupationally. Replacing farms
with factories could lead to loss of jobs in the economy.
• Pollution: Expanding the secondary sector could lead to a rise in social costs such as
pollution, if industrial production rises. Ex. Rapid economic growth in China has led to
sharp rises in pollution levels in several Chinese cities.
