An economic sector is a certain type of business activity within an economy. Economics
is part of the social structure of a society and is concerned with how people produce and
consume goods and services. What types of goods and services are produced and
consumed in a society depend on geography and social customs. There are different ways
of dividing the sectors of the economy, but one common method is called the "threesector hypothesis," which divides major economic activity into primary, secondary, and
tertiary sectors.
The primary economic sector includes obtaining and refining raw materials such as
wood, steel, and coal. Primary economic sector workers include loggers, steelworkers,
and coalminers. All types of natural resources industries such as fishing, farming, forestry
and mining are a part of the primary economic sector.
The secondary economic sector deals with the processing of raw materials into finished
goods. Builders and potters are examples of secondary economic sector workers; lumber
from trees is made into homes and clay from the earth is made into pottery. Brewing,
engineering, and all types of processing plants are part of the secondary economic sector.
The tertiary economic sector has to do with services to businesses and consumers. Dry
cleaners, real estate agents, and loan officers fall into the category of tertiary economic
sector workers. Transportation, banking, tourism and retail stores are all part of the
tertiary economic sector.
The movement of goods and services through the primary, secondary, and tertiary sectors
is referred to as the chain of production. For example, trees are sourced to make paper,
then the pulp is processed to create the paper and then the finished product is sold in
stores. Some people consider government and education to be solely part of the tertiary
sector, while others add additional sectors — the quaternary the quinary — to the three
main sectors.
The quaternary economic sector is said to be that of intellectual organization in a society
such as government, research, cultural programs, Information Technology (IT),
education, and libraries. The quinary sector is thought to be related to the quaternary
sector, but includes only the senior management levels. Top management in non-profit
organizations, media, arts, culture, higher education, science and technology and
government are all included in the quinary economic sector.