SECTORS OF ECONOMY
Primary Sector
The primary sector
of the economy extracts or harvests products from the earth. The primary sector
includes the production of raw material and basic foods. Activities associated
with the primary sector include agriculture (both subsistence and commercial),
mining, forestry, farming, grazing, hunting and gathering, fishing, and
quarrying. The packaging and processing of the raw material associated with
this sector is also considered to be part of this sector.
In developed and
developing countries, a decreasing proportion of workers are involved in the
primary sector. About 3% of the U.S. labor force is engaged in primary sector
activity today, while more than two-thirds of the labor force were primary
sector workers in the mid-nineteenth century.
Secondary Sector
The secondary
sector of the economy manufactures finished goods. All of manufacturing,
processing, and construction lies within the secondary sector. Activities
associated with the secondary sector include metal working and smelting,
automobile production, textile production, chemical and engineering industries,
aerospace manufacturing, energy utilities, engineering, breweries and bottlers,
construction, and shipbuilding.
Tertiary Sector
The tertiary
sector of the economy is the service industry. This sector provides services to
the general population and to businesses. Activities associated with this
sector include retail and wholesale sales, transportation and distribution,
entertainment (movies, television, radio, music, theater, etc.), restaurants,
clerical services, media, tourism, insurance, banking, healthcare, and law.
In most developed
and developing countries, a growing proportion of workers are devoted to the
tertiary sector. In the U.S., more than 80% of the labor force are tertiary
workers.
Quaternary Sector The quaternary
sector of the economy consists of intellectual activities. Activities
associated with this sector include government, culture, libraries, scientific
research, education, and information technology.
Quinary Sector
Some consider
there to be a branch of the quaternary sector called the quinary sector, which
includes the highest levels of decision making in a society or economy. This
sector would include the top executives or officials in such fields as
government, science, universities, nonprofit, healthcare, culture, and the
media.
An Australian
source relates that the quinary sector in Australia refers to domestic
activities such as those performed by stay-at-home parents or homemakers. These
activities are typically not measured by monetary amounts but it is important
to recognize these activities in contribution to the economy.
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