25) Labour Market Immobility

Question 0

What are the two types of labour immobility

Answer 0

⚫️geographical labour immobility
➡️inability of workers to move around the country in search for work

⚫️occupational labour immobility
➡️inability of workers to move between jobs
➡️due to lack of appropriate skills or training

Question 1

What does labour market immobility mean

Answer 1

⚫️type of market failure 
➡️results from inability of workers 
➡️to move easily between jobs
➡️resources may be misallocated
➡️leading to market failure

Question 2

What is geographical labour immobility may be due to

Answer 2

⚫️home ownership
➡️uk high percentage of people own their own homes
➡️selling a house is lengthy process
➡️prevents workers from being mobile

⚫️high house prices
➡️south of England prevent workers movingu
➡️from areas of high unemployment

⚫️social reasons
➡️people may not want to move away from their local areas
➡️due to family ties

Question 3

What caused occupational labour immobility

Answer 3

⚫️economy moving from
➡️manufacturing base to service-sector base
➡️so low-skilled manual workers found themselves without jobs
➡️contributing to structural unemployment

Question 4

What is structural unemployment

Answer 4

⚫️when unemployed don’t have right skills for the jobs available
➡️occur when industries in certain regions
➡️shut down for good

Question 5

What is the government policies to increase labour mobility for geographical mobility

Answer 5

⚫️housing subsidies
➡️building more rented accommodation
➡️where house prices are high
➡️allows unemployed workers move to areas
➡️which normally be too expensive for them

Question 6

What is the criticism of housing subsidies of government policy to increase labour mobility of geographical mobility

Answer 6

⚫️expensive for government
➡️ to fund and involves opportunity costs

⚫️long time lags
➡️new housing take long time to plan and build

Question 7

What is government policies to increase Labour mobility for occupational mobility

Answer 7

⚫️training and education
➡raise skill levels and Labour productivity

⚫️apprenticeship schemes
➡️targeted at young people
➡️combination of on-the-job training, work experience and education
➡️gives range of transferrable skills
➡️with specialist knowledge of particular area of the Labour market

Question 8

What are the criticism of occupational mobility of government policy to increase labour mobility

Answer 8

⚫funding from government

⚫️time lags
➡️before policy has a noticeable effect
➡️on the labour market

⚫️apprenticeship
➡️exploits them as cheap labour