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Lesson 4 of 7Managing Canada's Resources & Industries
Unit 3 · Lesson 4 of 7

Economic Sectors, Knowledge-Based Industries and Careers

The primary, secondary, tertiary and quaternary sectors and how Canada's jobs have shifted among them; knowledge-based industries and human capital (software, artificial intelligence, life sciences, video games) and why they matter for Canada's economy; and careers in the marine sector, natural resources and tourism, including how geospatial technologies are used on the job.

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Key things to remember

  1. 1Primary sector: extracts resources; secondary: manufactures and builds; tertiary: provides services; quaternary: creates and shares knowledge.
  2. 2About 4 out of 5 Canadian workers have service jobs; fewer than 2 percent work in farming, because machines let fewer people produce more.
  3. 3Human capital is the knowledge, skills, creativity and health of people; knowledge-based industries (software, AI, life sciences, video games, finance) depend on it and cluster near universities and skilled workers.
  4. 4Canada's major tech hubs include the Toronto–Waterloo corridor, Montréal, Ottawa, Vancouver and Edmonton; Canada launched the Pan-Canadian AI Strategy in 2017.
  5. 5Careers in the marine sector, natural resources and tourism use geospatial tools: GIS, GPS, sonar, LiDAR, drones and satellite remote sensing.

Ask the adults you know what they do for a living. You will probably hear about hospitals, stores, offices, schools, construction sites and warehouses, and far fewer farms, mines or fishing boats. Yet those jobs are connected: the nurse's scrubs started as cotton in a field, the office runs on electricity from a dam, and the software engineer may be designing a program that tracks wheat shipments. Geographers sort all this work into economic sectors to see how an economy is built and how it is changing.

PrimaryTakes resourcesFarmingMiningForestryFishingSecondaryMakes productsAuto plantsSteel millsFood processingTertiaryGives servicesRetailHealth careTourismQuaternaryCreates knowledgeResearchSoftware (IT)FinanceFollowing wheat through the sectors:Wheat farmgrows grainFlour millgrinds flourBakerysells breadCrop labbreeds new wheatNew wheat varieties go back to farms
Fig 1The four economic sectors: primary (extract: farming, mining, forestry, fishing), secondary (manufacture: autos, steel, food processing), tertiary (services: retail, health care, tourism) and quaternary (knowledge: research, IT, finance), with arrows tracing a product's journey from wheat to a flour mill, a bakery and research on new crop varieties.
SectorWhat it doesCanadian examples
PrimaryTakes resources directly from natureGrain farm in Saskatchewan, nickel mine in Sudbury, lobster boat in Nova Scotia, logging in northern Ontario
SecondaryTurns raw materials into products (manufacturing, processing, construction)Vehicle assembly in Alliston or Cambridge, steel mill in Hamilton, aluminium smelter in Quebec, building a house
TertiaryProvides services to people and businessesRetail, health care, teaching, banking, trucking, restaurants, tourism
QuaternaryCreates, processes and shares knowledge and information (often counted as part of services)Software, AI research, biotechnology labs, engineering design, data analysis, finance
The four economic sectors. Statistics Canada usually groups the quaternary sector with the other services.

How Canada's economy has changed

A century ago a large share of Canadians worked on farms. Machines, fertilizers and better seeds let fewer farmers grow far more food, so workers moved to factories in the cities. Since the 1970s, automation and competition from other countries have reduced factory jobs, and services have grown fastest. Today about 4 out of 5 Canadian workers have service jobs (Statistics Canada, Labour Force Survey), while fewer than 2 percent work in farming. This does not mean resources stopped mattering: primary industries still earn a huge share of Canada's export income and support towns across the country. They simply produce more with fewer workers.

Knowledge-based industries and human capital

Human capital is the knowledge, skills, creativity and health of a population: what its people can do. Knowledge-based industries earn money mainly from ideas, research and expertise rather than from raw materials: software and video games, artificial intelligence (AI), life sciences and biotechnology, engineering, finance and research. Their raw material is educated people, so they locate near universities and colleges, other tech companies, investors and places where skilled workers want to live. Their jobs tend to pay well, and their products, such as apps, designs and medical discoveries, can be sold worldwide without being shipped in a truck.

HubStrengthsExamples
Toronto–Waterloo corridorSoftware, financial technology, AI, life sciencesUniversity of Waterloo's co-op program and many startups; the Vector Institute for AI in Toronto; insulin was discovered at the University of Toronto in 1921–22
MontréalAI research, video games, visual effects, aerospaceMila, a large AI research institute; major video game studios; aircraft and flight simulator makers
OttawaTelecommunications, software, government researchKanata North technology park; Shopify was founded in Ottawa
VancouverVideo games, film visual effects, clean technologyGame and animation studios; many hydrogen and battery companies
Edmonton and CalgaryAI, energy technologyAmii, Alberta's AI institute in Edmonton; technology for cleaner oil and gas production
Some of Canada's knowledge-industry hubs and what they are known for.
Canada and artificial intelligence
Canadian researchers helped build modern AI. Geoffrey Hinton of the University of Toronto shared the 2024 Nobel Prize in Physics for foundational work on artificial neural networks, and Yoshua Bengio of Mila in Montréal shared computing's Turing Award in 2018 with Hinton and Yann LeCun. In 2017 Canada launched the Pan-Canadian Artificial Intelligence Strategy, often described as the first national AI strategy in the world, which funds three institutes: Amii (Edmonton), Mila (Montréal) and the Vector Institute (Toronto). A big challenge is keeping talent and the companies built on Canadian research in Canada, rather than seeing them move to the United States.

Careers in Canada's industries

FieldSample careersWhere geospatial technology helps
Marine sectorShip's officer, port logistics coordinator, hydrographer, marine biologist, fisheries officer, aquaculture technician, Coast Guard crewSonar and GPS map the sea floor and safe shipping routes; satellites such as Canada's RADARSAT Constellation Mission track sea ice, ships and oil spills; GIS maps fishing zones and protected areas
Natural resourcesGeologist, forester and forest technician, mining engineer, heavy equipment operator, millwright and electrician, environmental monitor, wind turbine technicianGIS forest inventories, LiDAR to measure tree height, satellite images of wildfires and clear-cuts, drones to survey mine sites, GPS-guided tractors
TourismPark interpreter and warden, outdoor guide and outfitter, hotel and event manager, chef, tourism marketerGPS trail apps and digital maps for visitors, GIS to plan campsites and manage crowds, mapping wildlife sightings
Careers in three sectors named in the curriculum, and how they use geospatial technology.

Many of these careers mix sectors and skills. A forest technician walks cut blocks with a GPS unit, then builds a GIS map in the office. A wind turbine technician is a skilled tradesperson who climbs towers and reads computer data on how each turbine is running. A fisheries officer uses satellite tracking of boats to enforce quotas. Skilled trades (electricians, millwrights, heavy equipment technicians, welders) are in high demand across resource industries and are reached through apprenticeships and college programs. If you liked GIS, GPS and remote sensing in Unit 1, these industries are full of jobs that use them.

How to classify a job
Ask what the worker actually does all day. Taking something from nature is primary; making or building a product is secondary; serving people is tertiary; creating or analyzing information is quaternary. The company matters less than the task: a mining company's geologist on a drill site is doing primary-sector work, while its data scientist in a Toronto office is doing quaternary work.

Worked examples

Reveal one step at a time and try to beat it to the next line.

Example 1
Follow a jar of Ontario maple syrup from the tree to your table and classify each job along the way by economic sector.
Example 2
Explain why Waterloo, Ontario, a mid-sized city with no special natural resources, became one of Canada's leading technology hubs.
Example 3
Describe how geospatial technology helps a forest technician plan a harvest in northern Ontario.

Where marks get lost

  • Classifying a job by the company instead of the task. An office accountant at a mining company does tertiary (or quaternary) work, not primary.
  • Thinking primary industries no longer matter because few people work in them. They employ few people directly but earn a large share of Canada's export income.
  • Believing knowledge industries locate near raw materials. Their key input is skilled people, so they cluster near universities, other firms and investors.
  • Forgetting skilled trades when listing resource-sector careers. Electricians, millwrights, welders and equipment technicians are essential and in high demand.

Flashcards 8

Primary sector
Secondary sector
Tertiary sector
Quaternary sector
+ 4 more

Practice

1
Match each worker to the economic sector of their job.
A miner drilling ore underground near Timmins
A worker assembling SUVs in Alliston
A nurse at a Thunder Bay hospital
A researcher training an AI model in Montréal
2
Sort these groups from the largest share of Canadian jobs to the smallest.
  1. 1Manufacturing
  2. 2Service industries
  3. 3Farming
3
Which factor matters MOST when a software company decides where to open a new office?
4
What term describes the knowledge, skills, creativity and health of a population?
5
Natural Resources Canada reported that in 2024 the natural resource sector contributed about 16.0 percent of Canada's nominal GDP, worth about 459 billion dollars. Use these numbers to estimate Canada's total nominal GDP, in billions of dollars, to the nearest billion.
billion dollars
6
How would a hydrographer working in the marine sector most likely use geospatial technology?
7
Why has the share of Canadians working in farming dropped so much over the last century, even though Canada grows more food than ever?
8
Which of these is the best example of a knowledge-based industry?

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