Changes in Economic Sectors (Edexcel IGCSE Geography)

Causes of change in employment

Spec point — 4GE1-S6.067 · Reasons for the changes in the numbers of people employed in each economic sector, including the availability of raw materials, globalisation, mechanisation, demographic changes and government policies.

• As countries develop, the number of people employed in each economic sector changes

  • This can be seen in the Clark-Fisher Model or pie charts

Clarke-Fisher Model

How levels of development affect employment in different sectors

• In developing countries, such as Kenya, more people are employed in the primary sector because:

  • A significant percentage of the rural population are subsistence farmers
  • The countries depend on exporting raw materials to developed and emerging countries to gain income

• In emerging countries, such as China, more people are employed in secondary economic activities

• This is because:

  • Factories are located in emerging countries due to lower costs
  • More raw materials may be available in these countries
  • Government policies aim to attract companies to locate there

• In developed countries, such as the UK, more people are employed in tertiary sector activities:

  • Education levels are higher, so people want tertiary sector jobs, which are, on average, higher paid than secondary and primary jobs
  • Deindustrialisation means there are fewer jobs in secondary economic activities
  • Mechanisation means there are fewer jobs in primary and secondary economic activities
  • There is a higher demand for services because people have more disposable income

Employment by economic sector

Summary of the causes of changing employment in economic sectors

• The main factors which affect the number of people employed in the different economic sectors include:

  • Availability of raw materials
  • Globalisation
  • Technology
  • Demographic changes
  • Government policies

Availability of raw materials

• Raw materials may have run out or be economically unviable to obtain
• Crop production and livestock may be reduced due to drought, flood, pests/disease or soil erosion
• Improvements in technology may reduce the amounts of raw materials needed

Globalisation

• Transnational corporations (TNCs) have factories and offices in many countries
• Lower costs tend to be in developing and emerging countries
• The internet and improved communication mean that service activities such as call centres can be located anywhere in the world
• Industries such as textiles and steel manufacturing are increasingly located in emerging countries

Technology

• There are fewer jobs in farming, mining and many factories due to mechanisation
• The Internet means companies can manage factories and offices located in many different countries
• Improvements in transport have reduced the friction of distance

Demographic change

• An increasing population means that there is a greater demand for products and services
• People have more disposable income to spend on leisure and other services
• The demand for goods and services is affected by the age structure of the population
• An increasing population means there are more workers available

Government policies

• Government policies target particular economic activities to locate in their country using :

  • Tax incentives
  • infrastructure improvements (new railways, airports)
  • grants/cheap rent

• International treaties impact what countries can trade

• In communist countries, governments have much more control over industry types and location

Exam Hint For 3-mark 'suggest' or 'explain' questions regarding changes in employment sectors (such as the secondary sector):

• Identify the change first: Start by identifying a specific change in employment that is explicitly shown in the provided resource

• Use "double development": these questions can be challenging because they require you to develop your ideas twice to earn full marks.

  • For example, identify a decrease in a sector, link it to a broader geographical concept (like a global shift in manufacturing), and then further develop the point by suggesting where the employment has moved.