The economy is divided into primary, secondary, and tertiary sectors. The primary sector involves harvesting natural resources, while the secondary sector uses these resources to produce finished products. The tertiary sector includes service industries. There are also quaternary and quinary sectors that introduce non-directly economic populations.
The primary and secondary sectors of an economy refer to how the industry uses resources to generate income. In the primary sector, natural resources are harvested directly from the earth. This sector would contain everything from farmers to coal miners to loggers. The secondary sector uses the materials of the primary sector, together with wholly man-made materials, to produce finished products; this sector includes the majority of manufacturing and construction companies. In addition to these industries, there are industries that cater to everything from the service industry to stay-at-home parents.
Economists often divide a country’s economy into sectors that each contain a specific grouping of jobs. The primary and secondary sectors are generally the best known, as they are typically indicators of the overall economic health of the nation. Industry classification is based on their dependence on existing natural resources. The first two require natural resources or use natural resources directly.
In most countries, these sectors make up the bulk of the economy. They generate the most income and contribute the most to the economic stability of the country. Oddly enough, in many developed countries, the largest population works in the tertiary sector, the service industry. This section contains companies that offer benefits to other people, but do not directly create a product; this can be anything from a banker to a gas station attendant. This group does not use natural resources at all, but may be operating in an industry that needs natural resources to continue.
These three sectors constitute the common point of view of the economic system. The primary and secondary sectors are the processors and creators, while the tertiary sector interacts. Some more recent economic models also contain a quaternary and a quinary sector. These sectors introduce portions of the population that have no direct economic impact, but help advance the economy.
The quaternary sector contains industries that do not generate products, may not generate income, and may not provide a service. These industries are often administrative, governmental or research-based. While these industries may be mixed with industries from other sectors, they maintain a separate identity. The quinary sector includes people who are not part of the established industry, but still use the economy. These people are out of work but have money, either because they are retired, wealthy or have a working spouse.
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