The employment structure is an important feature that allows communities to assess the level of socio-economic and demographic situation of the country.

The employment structure changes with economic development. In underdeveloped countries the majority of the population works in agriculture, forestry and fishing, which is in the I sector. The development of industry causes flow of population from agriculture to industry – to the sector II. As the ongoing development of the country mechanization and automation reduces employment in agriculture and industry and promotes the development of services that constitute the sector III. The development of III is associated with the growing demand of affluent societies, commercial services, medical, educational, tourism, banking and manufacturing related service companies. Employment growth in the developed societies III is also associated with increased complexity of their economies and low susceptibility to automate most of the services.

Currently, around the world we can see a very wide range of employment in particular sectors. And so in countries:
– Highly developed – employment in the sector amounts to 10% in the second – 20-30% at a constant decline in the number of employed, III and IV – more than 60%;
– An average of developed countries – in the sector employs 10-30%, in the second – 20-50% in III and IV – more than 30% of the population;
– Poorly developed – dominates employment in the sector

Here is the top ten countries with the big percentage of participation in a particular sector of employment (and also the average percentage of the world) :



Structure of employment.

4 thoughts on “Structure of employment.

  1. This is a very interesting article. As we can see in the last years companies are more and more forced to concentrate on their core competences and therefore source some production processes out in developing countries because there the workforce is much cheaper than in Europe. Furhtermore companies start to outsource services like customers services or also often accounting departments in countries like for instance India, China, Bangladesch, etc. to reduce costs. But is this really the right way? Because in the long-run the european countries will get in trouble in terms of unemployment and economic valuability.

  2. If something happens in one sector, the other sectors will be affected as well. This happen for instance under the financial crisis. The first sector that had problems was the bank sector (the tertiary sector) which led to problems in the other sectors as well. The industry sector (construction) was hardly affected, and for Spain with a huge part of the employment working in this sector the consequences was fatal. The tertiary sector has however over 70% of the employment in Spain, and only 4% in agriculture and 26% in the industry sector. For most European countries however the tertiary sector is bigger, and the industry sector smaller. The change in the employment from industry sector till the tertiary sector is often called tertiarisastion. The shift from one sector to another is as said in the article a sign of economic development, and in a way there is. However it means leaving behind old traditions, and relaying on others to produce what we need. I know for sure that Norway import more than what we are making ourselves. However the industry sector is much bigger than in other countries, mainly because of our gas and oil.

  3. Tonjegr, I agree with you. No sector is on its own, all of them are connected and interact with each other. For clarification commodities are located in the first respectively the second sector, but their prices are traded on stock exchanges (third sector). A price movement in one sector involves big impacts on different sectors. As agriculture is prevalent and possible with few knowledge, work force is easier to substitute. Since the creation of value increases from the first to the third sector, people of the third sector do better than those, who work in the first sector. Ergo a high dependency on agriculture is very dangerous for a whole national labour market.

  4. In poorly developed countries first sector is very important as well, and the third sector produced less add value than the same sector in most developed countries.


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