Classification of different industries (Cambridge International IGCSE Geography)

Specification link

This page covers section 9.1.1 of the CIE IGCSE specification .

• 9.1.1- Classification of different industries: primary, secondary, tertiary and quaternary.

Introduction: Employment sectors

• 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 four sectors of industry

Primary industry

Spec point — Classification of different industries: primary, secondary, tertiary, and quaternary

• 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).

Secondary industry

Spec point — Classification of different industries: primary, secondary, tertiary, and quaternary

• 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

Tertiary industry

Spec point — Classification of different industries: primary, secondary, tertiary, and quaternary

• 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

Quaternary industry

Spec point — Classification of different industries: primary, secondary, tertiary, and quaternary

• 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.

Exam Hint Remember that the tertiary and quaternary sectors are both service industries.

However, the quaternary sector needs a higher level of education than the tertiary sector.