sectoral

Sectoral is an adjective relating to sectors, typically used to describe things that pertain to distinct parts of an economy, industry, or organizational structure. In economics and policy analysis, sectoral analysis examines how different sectors—such as agriculture, manufacturing, services, or energy—contribute to output, employment, and growth. Sectoral composition refers to the share of economic activity accounted for by each sector, while sectoral shifts describe changes in employment or output across sectors over time, often driven by technological change, globalization, or policy.

In policy contexts, sectoral approaches tailor interventions to the needs and dynamics of specific sectors. Sectoral policies might address sector-specific constraints, incentives, or regulations, and may be coordinated within a broader development strategy while allowing for targeted measures such as subsidies, tax incentives, or standards. Sectoral planning often involves prioritizing investment and reforms in particular sectors to advance overall strategic objectives.

In labor relations, sectoral bargaining or sectoral agreements involve the negotiation of wages and conditions at the level of an entire sector rather than a single firm, aiming to standardize terms and reduce fragmentation. Sectoral classifications are used in statistics to categorize firms and activities, with common schemes aligning to internationally recognized industry taxonomies.

Across disciplines, the concept helps organize governance, budgeting, and planning processes by delineating boundaries and interactions among different sectors. It is also used in analyses of resilience and risk, assessing sector-specific vulnerabilities and the potential for sectoral spillovers within the economy.