The Clark-Fisher model and sectoral shifts in employment

The Clark-Fisher model illustrates how the importance of economic sectors evolves as a country develops.

Key features of the Clark-Fisher model

• Economic contribution - As development progresses, the focus shifts from primary to secondary, and eventually to tertiary sectors in terms of contribution to Gross Domestic Product (GDP) or Gross National Income (GNI).
• Labour distribution - The percentage of the workforce employed in each sector changes, with a decline in primary sector jobs (like agriculture) and a rise in secondary (manufacturing) and tertiary (services) sector roles as a country industrialises and modernises.
• Development link - These shifts are tied to broader economic and social development processes, reflecting improvements in infrastructure, education, and technology.

Causes of changes in sector employment: raw materials and location factors

Changes in the availability of raw materials and location preferences significantly influence employment across economic sectors. These factors often lead to the relocation of industries, impacting job distribution.

Impact of raw materials on sectoral employment changes

• Depletion of resources - When raw materials like minerals (e.g., iron or copper) are exhausted in a region, industries may move to new locations, reducing jobs in the original area and creating them elsewhere.
• Energy source shifts - Historically, manufacturing was tied to coalfields, as seen in the UK during the 19th and early 20th centuries. Now, with electricity grids and oil or gas pipelines, industries can locate almost anywhere, altering employment patterns.
• Relocation impacts - Moving a factory or production site results in a loss of secondary sector jobs in one place and a gain in another, reshaping local economies.

Impact of new technology on employment sectors

Technological advancements have transformed economic sectors by changing labour demands and creating new industries.

Effects of technology on sector employment

• Mechanisation in agriculture and manufacturing - The introduction of machinery has reduced the need for manual labour in primary and secondary sectors. Workers displaced from farming often moved to factories, and later, those replaced by industrial automation shifted to service-based roles in the tertiary sector.
• High-tech industries - Cutting-edge technology has birthed new sectors like aerospace, robotics, and biotechnology, creating specialised jobs.
• New products and services - Innovations over the past few decades have introduced items like smartphones and laptops, alongside related services such as broadband provision and software development, expanding tertiary sector employment.

Transport and communication improvements

• Transport advances:
  • Travel speeds have increased dramatically from horse-drawn coaches at around 10 mph in the early modern era to jet aircraft at speeds exceeding 500-700 mph today.
  • This has reduced the friction of distance, making it faster and cheaper to move goods and people.
  • These improvements connect global markets and influence job locations.
• Communication revolutions - Modern communication technologies enable near-instantaneous information transfer worldwide, linking places more closely and supporting remote work or global business operations.

Role of globalisation in shaping employment distribution

Globalisation refers to the increasing interconnectedness of the world's economies, drawing countries into a single global market. This process influences employment by shifting jobs across regions and sectors based on economic strengths.

Influences of globalisation on sector employment

• Transport and communication advances - Improved speed, cost, and capacity in transport, alongside innovations in information technology, have made global trade and operations easier, redistributing jobs internationally.
• Market expansion - Growing markets in emerging and developing countries create new employment opportunities, often in manufacturing or services tailored for export.
• Transnational corporations (TNCs) - The growth of TNCs and intergovernmental organisations facilitates job shifts as companies set up operations in countries with competitive advantages, such as lower labour costs.
• Trade and investment growth - Increased foreign investment and aid, alongside expanding trade, influence where jobs are created, often benefiting secondary and tertiary sectors in developing regions.

Regional specialisation examples

• Kenya - Exports fresh produce to Europe
• South Korea - Manufactures affordable cars for global markets
• India - Hosts international call centres due to its educated, cost-effective workforce
• Sri Lanka - Tourism booms shift employment towards services

Influence of government policies, demographic, and social changes on sector employment

Government actions, population dynamics, and societal trends play crucial roles in altering employment patterns across economic sectors.

Impact of government policies on employment sectors

Government involvement in the economy ranges from minimal in capitalist systems to extensive in communist ones. Policies can directly affect sector employment.

Examples of government support for specific sectors:

• UK - Policies have historically supported agriculture and boosted service industries to offset manufacturing job losses.
• China - Has focused on expanding its secondary sector to produce goods for global markets, creating numerous factory jobs.

Demographic and social changes affecting employment

• Population growth - Rising populations increase demand for goods and services like food, household items, education, and healthcare, boosting employment in related sectors to varying extents. More people also mean a larger labour pool, encouraging labour-intensive industries.
• Increased disposable income - As countries develop, people earn more and spend on both essentials and non-essentials like entertainment or holidays, driving tertiary sector growth.
• Changing consumer preferences - Shifts in lifestyle, such as preferring weekly shopping at large superstores over daily local shop visits in high-income countries (HICs), influence the types of jobs created in retail and services.

Cycle of tertiary growth

A self-reinforcing cycle emerges in the tertiary sector where more personal income leads to increased spending, raising demand for services, which in turn creates more and better jobs, further increasing income and spending.