Tertiary Sector
High School
Definition
The part of the economy that provides services rather than goods, such as retail, education, healthcare, and finance. In developed economies like Canada's, the service sector employs most workers.
Worked examples
A hospital nurse providing patient care in Toronto
Healthcare is a major tertiary-sector service that employs many Canadians.
A retail clerk helping customers at a grocery store
Retail trade is part of the tertiary sector because it provides a service, not manufactured goods.
A teacher instructing students in a classroom
Education services are a key component of the tertiary sector in developed economies.
Common mistakes
- A factory worker assembling cars is in the tertiary sector → Manufacturing is the secondary sector; tertiary provides services like banking or retail Tertiary means services, not production of physical goods.
- Farming and fishing are tertiary-sector jobs → Agriculture and fishing belong to the primary sector (resource extraction) Primary extracts raw materials; tertiary delivers services to people and businesses.
- Only rich countries have a tertiary sector → All economies have service sectors, but developed ones rely on them most heavily The tertiary sector exists everywhere but dominates employment in developed nations like Canada.
Where you'll use it next
You'll apply the tertiary sector concept when studying economic development, comparing primary/secondary/tertiary employment patterns across countries, analyzing urbanization trends, and exploring how Canada's economy shifted from resource-based to service-based industries.
See also
Primary SectorSecondary SectorEconomic SystemsGoods and ServicesMeasuring Economic PerformanceDigital Economy
Reviewed by Pat Cheng, M.Ed. — StudyPug Curriculum Lead · Last updated June 6, 2026