Economic growth

• Primary sector


  Fishing, agriculture and mining
• Secondary sector


  Manufacturing industry
• Tertiary sector


  Service sector
• How has the industrial structure of the UK changed?

  1. Jobs in primary sector declining due to increased machinery use

  2. Jobs in manufacturing industry increased due to factories and urbanisation

  3. Decrease in manufacturing jobs due to mechanisation and competition from abroad

  4. Service sector increased due to public services, financial services and leisure

  5. Research and development sector becoming increasingly important
• Industrial structures vary around the UK, with some places specialising in different industries
• Globalisation


  Business, ideas and lifestyles now spread rapidly across the globe due to improvements in travel, the introduction of the internet and the development of trading blocs such as the EU
• Globalisation


  • More businesses in the UK owned by companies based in other countries
  • UK companies own more businesses in other countries
  • For the UK economy to be prosperous, we need to be part of the global economy
• Main impacts of globalisation in the UK

  • Migration - Migrants fill jobs with a shortage of skilled workers
  • Less manufacturing - Goods imported more cheaply from countries with lower wages
  • Inequality - Gap between best-paid and lowest-paid jobs increasing
  • Outsourcing - Jobs outsourced to countries with lower wages
  • Economic growth - UK economy increases 1-2% each year due to trade
  • Foreign investment - Foreign companies invest in UK, bringing new ways of working and technology
• Cheaper goods and services - Wages and production have become more competitive, leading to lower-priced products and services
• How have government policies addressed economic change?

  1. 1945-79 - State-run industries set up to support declining heavy industries and protect jobs

  2. 1979-2010 - Government-run industries privatised, heavy industries closed down leading to job losses

  3. 2010 onwards - Government encouraging investment in high-tech manufacturing, significant investment in transport infrastructure, development of small businesses encouraged through loans and incentives