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Q.“The quaternary sector along with the tertiary sector has replaced most of the primary and secondary employment.” Support the statement.

CBSECBSE Class XII Board 2022Subjective· 3mImportance★★★★★
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The quaternary and tertiary sectors have overtaken primary and secondary employment in developed economies by shifting the focus from producing goods to providing knowledge-based services and information processing.

The shift you are asking about is one of the most significant economic transformations of the last century. To understand it, we need to first see what each sector does. The primary sector involves extraction of natural resources — farming, mining, fishing, forestry. The secondary sector is manufacturing — turning raw materials into finished goods. For most of human history, these two sectors employed the vast majority of people.

Then came the tertiary sector, or the service sector. This includes retail, transportation, hospitality, banking, healthcare, and education. As economies grew richer and more complex, people no longer needed to spend all their energy producing food or making things. They could instead work in shops, hospitals, banks, and schools. In countries like the United States, the United Kingdom, and Japan, the tertiary sector now employs well over 70% of the workforce.

But the story does not stop there. The quaternary sector is a specialised subset of the tertiary sector. It deals with knowledge-based activities: research and development, information technology, data analysis, financial planning, consulting, and education at the highest levels. These are jobs that create, process, and manage information rather than providing routine services.

Note

Some economists also identify a quinary sector for top-level decision-making in government, science, and corporate leadership, but the quaternary sector is the one most directly replacing traditional employment.

So how exactly have these two sectors replaced primary and secondary employment? Let us look at the mechanics.

First, automation and mechanisation have dramatically reduced the need for labour in farming and factories. A single modern farmer with a tractor and GPS-guided equipment can do what a hundred labourers did a century ago. Similarly, a factory with robotic assembly lines needs far fewer workers than one from the 1950s. The jobs that remain in primary and secondary sectors are fewer and require higher technical skills.

Second, globalisation has shifted manufacturing to countries with lower labour costs. Developed nations have seen their factories close or move abroad. The workers who once stood on assembly lines have had to find new roles — and those roles are overwhelmingly in services. A former factory worker might now drive a taxi, work in a call centre, or manage a warehouse.

Third, the rise of the information economy has created entirely new categories of employment that did not exist before. Think of software developers, data scientists, digital marketers, cybersecurity analysts, and social media managers. These are quaternary sector jobs. They did not replace old jobs one-for-one; they created a whole new labour market that now employs millions. …

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