Topic 21-labour Immobility

Question 1

Structural unemployment

Answer 1

Changes to the economy e.g deindustrialisation making many people unskilled for certain jobs

Question 2

Geographical immobility of labour

Answer 2

Involves factors which limit the movement of workers from one country or region of a country to another

Question 3

Occupational immobility of labour

Answer 3

Involves factors which limit the movement of workers from one occupation to another

Question 4

Immobility of labour

Answer 4

Refers to the barriers or limitations on the ability of workers to move between countries or different part of countries or between occupations

Question 5

Causes of geographical immobility of labour

Answer 5

• financial costs/ housing prices in different regions/countries: the most significant barrier to the mobility of labour. Person living in an area with low house prices will find it difficult to move
• costs of moving house&costs of living: removal costs, legal costs and taxes
• social and family ties
• disruption of children’s education
• imperfect market knowledge on available work in other countries

Question 6

Government policies to increase the geographical mobility of labour

Answer 6

• housing subsidies: these could take the form of rent subsidies or housing benefit
• provision of affordable housing: gov may build new homes for those on low incomes
• reduction in planning restrictions so that it is easier for developers to build new houses
• improvements of information about job availability in other parts of the country or different countries e.g Internet
• incentives: e.g no tax, rent paid for

Question 7

Causes off occupations immobility of labour

Answer 7

• lack of relevant skills: unemployed workers may be unable to secure jobs because they don’t have the skills required to take the jobs available
• lack of appropriate qualifications: some jobs specific qualifications may be required
• no relevant experience: some employers insist on the need for experience
• wage rate: a worker won’t want to move to another job if the wage rate is too low

Question 8

Measures to increase the occupational mobility of labour

Answer 8

• training programmes: these would be aimed at closing skills shortages by providing appropriate courses
• increase higher education provision: graduates may have transferable skills so that they can be trained quickly and easily to work in different occupations
• information about opportunities in other occupations: workers may not be aware of possibility of pursuing an alternative career