Changing employment structure – the Clark–Fisher model and deindustrialisation

GeographyGlobal Economy & DevelopmentAges 16–17

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The Clark–Fisher model shows employment shifting from the primary to the secondary and then the tertiary and quaternary sectors as a country develops. Drag the level of development to watch the employment structure and informal work change; place 13 real countries (approximate data, about 2022) on the model curve and a triangular graph and compare them with the historical paths of the UK and China; then simulate three regions – an old industrial city, a science-park city and a newly industrialising region abroad – as wages, transport costs, automation and investment change.

Lesson: Employment structure and economic change: the Clark–Fisher model, deindustrialisation, globalisation and offshoring, the informal sector

What it shows

As countries develop, the share of people working in each sector changes. In pre-industrial economies most people farm, fish or cut wood. Industrialisation draws workers into factories, mines and construction, while mechanised farming needs fewer hands. In post-industrial economies automation and offshoring cut factory jobs, and rising incomes create demand for services and knowledge work. Real countries do not follow the curve exactly: many lower-income countries move straight from farming into services, much of it informal.

How to use

On the Clark–Fisher model screen, drag Level of development or press Play. On Countries (triangular graph), choose a Country, a Historical path, or tick Place the country yourself, tap the graph and press Check. On Deindustrialisation and offshoring, set Wage abroad, Transport costs, Automation and Science-park investment, tick regeneration, press Run and compare runs in the table.

Parameters you can change

  • Screen Clark–Fisher model, Countries (triangular graph), Deindustrialisation and offshoring
  • Level of development (0 = pre-industrial, 100 = post-industrial) 0–100
  • Show informal employment
  • Country United Kingdom, United States, Germany, Japan, South Korea, Brazil, Mexico, China, Indonesia, India, Bangladesh, Nigeria, Ethiopia
  • Historical path on the triangular graph None, United Kingdom 1801–2022, China 1991–2022
  • Students place the country on the triangular graph
  • Wages abroad compared with home 5–100 %
  • Transport costs and tariffs as a share of the value of goods 0–30 %
  • Growth of manufacturing productivity from automation 0–6 %/year
  • Investment in the science park (0–100) 0–100
  • Urban regeneration and retraining in the old industrial city

Questions to explore

  1. Why does the share of secondary-sector jobs first rise and then fall as a country develops?
  2. Nigeria has a larger share of service jobs than China; does that mean Nigeria is more developed? Why?
  3. With wages abroad at 25%, what happens to jobs and unemployment in the old industrial city when transport costs fall from 20% to 5%?