The Sectors of the Economy

The majority of all economic activity can be classified into one of four sectors: the primary sector, the secondary sector, the tertiary sector, and the quaternary sector. 1. The Primary Sector The primary sector consists of all industries that are involved in the extraction of natural resources or raw materials. This includes industries such as forestry, mining, farming, and fishing. It is usually the strongest sector in terms of employment in less developed or traditional economies. However, as these economies advance, technological improvements can substantially increase their efficiency and output, which is why the number of workers employed in the primary sector tends to decrease as economies develop. 2. The Secondary Sector The secondary sector includes all industries that are involved in the production of finished goods. That means, this sector converts the raw materials extracted by the primary sector into finished products. It is often divided further into heavy industry a