Tertiarization: Definition, Causes & Example

In the human geography it always comes to one structural change. This is reflected in changes in the economy, for example. the tertiarization is one of the structural change models. But what is tertiaryization and how does it happen?

Tertiarization – Definition

Under tertiarization becomes a structural change Roger that. This structural change goes from the industrial sector to the service sector. Services are taking a more important position and more and more people are working in this field.

The term tertiarization means the conversion process to a service society. It describes the reduction in manufacturing jobs combined with an increase in service employment.

Areas that belong to the services include consulting, administration and service. This includes warehousing, transport, organization and much more. At the same time finds less production of goods instead of.

Material foundations and social values ​​and norms are changing. Tertiarization leads to a economic change and to socio-economic and spatial changes. the tertiarization has increased especially in industrialized countries.

Economic sectors and tertiarization

Tertiarization is a sectoral structural change. The basis is the division of the economy into sectors of J. Fourastie. The economic development of a region can be shown with the sectors.

Of the sectoral structural wallsl is a long term shift in the Economic structure due to different degrees of growth in the economic sectors.

In the primary sector finds the raw material extraction instead of. Industry can be found in the secondary sector and the service society is in the tertiary sector.

If you know more about J. Fourastie If you want to know, you can click into the explanation about him.

Primary Sector

Primary production takes place in the primary sector. raw materials are then processed into goods in other sectors.

Of the primary sector deals with the extraction of raw materials.

Examples include agriculture and forestry, fishing, hunting and water use.

Secondary Sector

To the material production goes in the secondary sector. The raw materials are processed and processed.

in the secondary sector the raw materials from the primary sector are processed and processed, which is why it is also called the industrial sector.

Among other things, industry and handicraft activities are part of the secondary sector.

Tertiary Sector – Service Sector

The tertiary sector is somewhat different from the other economic sectors. It will only Services executed.

Of the ttertiary sector or also called the service sector, provides services

ready.

services such as banking, doctors, tourism or retail is one of them.

Expansion of economic sectors

In most cases, the economic sectors are only divided into three sectors. But you can also add the economic sectors to the Quaternary and quintary sectors extend. Information and data are exchanged in the quaternary sector. The quintary sector is about disposal, such as garbage collection.

You can find more information on the topics in the explanation on the economic sectors.

Tertiarization – causes

The causes for the tertiarization are diverse. However, the three main reasons are:

  • population and employment growth,
  • the technical progress
  • and the net investment

These factors influence aggregate demand and consumer preferences.

Also the structural change plays a major role in this. At that time, many people worked in production. The production took place in assembly line work.

The assembly line work led US car manufacturer Henry Ford in 1913.

But over time, machines took over the work. There was less jobs and the secondary sector became less important. Many people were looking for work and companies from the tertiary sector have professional staff searched.

In addition, the newly hired specialist staff in particular earned more. Services could be provided more easily and no longer had to be provided by oneself. So it happened, for example, that people employed cleaning staff instead of cleaning themselves.

In the service sector, however, a higher level of education expected. As a result, the level of education has increased. The Internet also created many new professions, most of which also belong to the service sector.

In general, they changed living conditions. Employees’ working hours were reduced and the demand for leisure activities increased. Demographic change also created a higher demand for services.

At a demographic change it is assumed that the composition of the population will change. This is due, among other things, to immigration and emigration, but also to the number of births and deaths of people in a country.

More and more complex products and devices are also being manufactured and sold. This requires advice that belongs to the service sector.

Not to be forgotten in all of this is the 1990’s expansion of business-oriented services. This was due to the fact that industry demand for these services increased and industry services were also outsourced. Tasks that were not a company’s core competence were given to specialized companies.

If you want to learn more about industry, then also read the explanation on industrialization.

Not to be forgotten are the static processes. These can lead to an illusion tertiarization to lead. If the percentage of employment in the primary and secondary sector falls, it increases in the service sector even without an increase in jobs.

Tertiarization – Opportunities and Risks

Many jobs used to be in the Agriculture and dropped out in the industry. In the 20th century, hope lay in the service sector to make up for it. It was assumed that services had to be consumed and rendered. It was to be expected that there would be an increase in employment.

Many services have been replaced by durable consumer goods. The connection between consumption and service slowly dissolved. In the 1990s it intensified. In addition, services have become increasingly automated and standardized. As a result, more and more activities were relocated abroad.

In some cases, customers have taken over the services themselves. That’s what you call it self-service societyt. These include, for example, ATMs or cash registers where you can scan your products yourself.

Jobs are saved by a complicated financial situation. Sales are increasing and at the same time jobs are being reduced. For example, it can happen that a automation Specialist staff are no longer required and therefore less salary has to be paid. This is very popular in the areas of simple services.

Statistically, the number of jobs can be increased by part-time jobs. This phenomenon is widespread in the service sector.

Tertiarization – Example of the Ruhr area

In the quiet area there are many leisure and cultural facilities that relate to the tertiarization be traced back. Casinos, musical halls and much more.

That Ruhr area has the peculiarity that there is a industrial agglomeration is and the largest hard coal reserve housed in Germany.

In 1950 the coal crisis hit. The livelihoods of many residents were threatened. New industries emerged, which led to modernization. Mining stagnated and the state intervened with the Ruhr 1968 development program.

All this led to a better infrastructure over time. Universities were built and companies moved to the Ruhr area.

Tertiarization – the most important thing

  • tertiarization is the change from production to Services.
  • Of the primary sector is for raw materials responsible, the secondary sector processed this.
  • Of the tertiary sector will also be service sector called.
  • The industrialized countries in particular have changed as a result of tertiarisation.
  • The main causes of tertiarization are these Population and employment growththe technical progress and the net investments.