Why Is There A Decline In Employment In The Primary Sector?


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Oscar De La Huerte Profile
There are a number of reasons why the primary sector might see a drop in employment levels.

Some of the most obvious factors include:

  • Cheap imports
  • Lower reserves of raw material
  • Lower demand
  • The amount of available farm land is decreasing
The decline of the primary sector In economics, everything is related. Every occurrence seems to have a knock-on effect, so when it comes to the causes of unemployment in the primary sector, the causes can be a long list of indirect factors.

The more obvious factors are the ones that directly relate to the primary sector: So changes in agriculture, mining, and the amount of natural resources available.

Essentially, the less activity there is in this sector, the more the employment figures will drop.

Foreign imports are another threat to the primary sector.

For example, in the UK- it is often cheaper to import coal from other countries rather than mine it locally. This means the jobs that would have been available to the local primary sector end up going abroad.

Declining economy of the primary sector
Finally, the very structure of a countries economy might necessitate a shift away from the primary sector.

A few hundred years ago, countries like England would have had a large primary sector made of farmers, industrial workers, etc...

However, as cities developed during the industrial revolution, this meant more and more people abandoning their farms and moving into the towns for jobs that were often more secure and better paid.

Usually, as a country's economy develops, jobs in the secondary and tertiary sectors increase at the the expense of the primary sector.
Anonymous Profile
Anonymous answered
Why there is a decline in employment in the private sector?
Economies move in cycles. The decline in employment is, in fact, the economy's way to correct wage levels that had grown much to high.

Income shifts occur either by reduction of wage levels or reduction of payrolls through layoff and job attrition.

Both are happening now and seem destined to continue for a substantial period.

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