The correct option is Economic development.
Explanation
The movement of the workforce from the primary sector (agriculture) to the secondary (industry) and tertiary (services) sectors is known as
structural transformation. According to development economics (specifically the Clark-Fisher hypothesis), this transition is a fundamental indicator of economic progress and development.
Option Analysis
- Economic recession Economic recession: Incorrect. A recession is a period of temporary economic decline characterized by a fall in GDP. During recessions, the industrial and service sectors often shed jobs, sometimes leading to reverse migration where workers return to agriculture as a safety net.
- Economic development Economic development: Correct. As an economy develops, productivity in agriculture increases (releasing surplus labor) and demand for manufactured goods and services rises (creating new jobs). Consequently, the share of agriculture in both GDP and employment declines, while the shares of industry and services increase.
- Jobless growth Jobless growth: Incorrect. Jobless growth refers to a situation where an economy experiences growth in GDP without a corresponding increase in employment levels. While the shift to capital-intensive industry can cause jobless growth, the shift itself is a characteristic of development, not defined by the lack of jobs.
- Informalisation Informalisation: Incorrect. Informalisation refers to an increase in the proportion of workers in the unorganized sector or informal employment arrangements. While developing economies may experience informalisation during the shift, the shift itself is defined as economic development or structural change.
Key Takeaway
Economic development is structurally characterized by the reallocation of economic activity and labor from low-productivity sectors (agriculture) to higher-productivity sectors (industry and services).