Economic change in the UK

How has the industrial structure of the UK changed?

The industrial structure (the type of work people do) of the UK is always changing. In 1841, at the hight of the industrial revolution, there was a substantial change in the UK’s industrial structure, including:

  • jobs in the primary sector (fishing, agriculture and mining) were declining due to the increase in the use of machinery
  • jobs in the manufacturing industry increased as factories were built and urbanisation occurred

During the twentieth century, another significant change in the UK’s employment structure happened, including:

  • a decrease in the number of people working in manufacturing as mechanisation (introduction of robots etc.) replaced jobs along with increased competition from abroad
  • the service sector increased dramatically due to the introduction of public services, the growth of financial services and an increase in leisure time and disposable income
  • since the 1980s the research and development sector has become increasingly important

You should be aware that industrial structures vary around the country, with some places specialising in different industries.

What impact does globalisation have on the UK economy?

The UK economy, like all the others around the world, have been affected by 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. This has led to more businesses in the UK owned by companies based in other countries. In the same way, UK companies now own more businesses in other countries. For the UK economy to be prosperous, we need to be part of the global economy.

The main impacts of globalisation in the UK include:

  • Migration – Migrants fill jobs where there is a shortage of skilled workers in the UK, such as in healthcare and construction.
  • Less manufacturing – Fewer goods are manufactured in the UK because they can be imported more cheaply in countries such as China where wages are lower.
  • Inequality – The gap between the best-paid and lowest-paid jobs is increasing.
  • Outsourcing – jobs are outsourced to other countries where wages are lower, such as HSBC call centres to India.
  • Economic growth – in most cases, the UK economy increases by 1-2 per cent each year. This is mainly down to trade with other countries, helping the country to become wealthier over time.
  • Foreign investment – foreign companies invest in the UK, bringing new ways of working and technology. This provides jobs and skills development to people living in the UK.
  • Cheaper goods and services – Wages and production have become more competitive, leading to lower-priced products and services.




Geography Infographics Set 1
Internet Geography Plus
Holderness Coast CPD 25th October




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