- Structural change
- Structural change is a long-run shift in the share of an economy's output and jobs from one sector to another, such as from manufacturing to services.
- Deindustrialisation
- Deindustrialisation is a long-run fall in manufacturing's share of an economy's output and jobs, as services take a larger share.
The three sectors of the economy
Can you name the three sectors of the economy?
Every activity in the economy falls into one of the three, so their shares of total employment sum to one hundred per cent.
The primary sector takes raw materials from nature: agriculture, forestry and fishing, and mining and quarrying.
Can you think of an example?
A dairy farm in Cheshire, a trawler landing fish at Peterhead and a quarry cutting stone in the Peak District all work in the primary sector.
The secondary sector makes things: manufacturing, construction, and the supply of gas, electricity and water.
Can you think of an example?
A car plant in Sunderland turning steel into cars, a builder putting up new houses and a power station generating electricity all work in the secondary sector.
The tertiary sector provides services: transport, shops, banking and insurance, public administration, education and health, and hotels and catering.
Can you think of an example?
A lorry driver delivering to a supermarket, a bank clerk, an NHS nurse and a hotel receptionist all work in the tertiary sector.