Flexibility, Leisure and Immigration Flashcards
recent changes in UK lab mkts (4)
1) de-industrialisation- also decline in trade unions
2) increase in service sector- unions less influential, increase in part time hours and flexible hours, more women
3) increase in % of retired people
4) increase in labour market flexibility
5) falling real wages since recession of 2008
types of labour mkt flexibility (5)
1) choice of hours: part/full time (temporal)
2) flexible location: home/office (Locational)
3) number of workers in the firm (numerical)
4) greater flexibility in pay arrangements- closer linked to productivity (wage flexibility)
5) Functional flexibility, ability of workers to perform different tasks
flexible labour markets require: (4)
1) skilled workforce which is occupationally mobile
2) geographical mobility; strong housing sector
3) flexible hours; temporary employment
4) government intervention which does not distort the mkt
why has there been an increase in labour mkt flexibility? (4)
1) globalisation- more competition, firms must keep costs low- outsourcing
2) technological change- internet increased information provision
3) privatisation- private firms sought to increase profitability by cutting excess workers
4) reduced power of trade unions
gov’t actions to make lab mkt more flexible (7)
1) reduce minimum wages and power of TUs
2) improve information about job availability
3) better education and training. Enables a more skilled workforce and helps to reduce immobility
4) legislation to outlaw discrimination
5) improve child care facilities to encourage women to work
6) lower JSA to make unemployment more inattractive
7) Remove employment protection legislation
factors making labour mkts inflexible
- minimum wages
- high redundancy payments
- maximum working week
- more legal protection for workers
disadvantages of flexible labour markets
1) part time staff may not get sufficient training- workers remain low skilled
2) greater job insecurity and stress- lower productivity
3) rising inequalities as non-unionised part-time workers get lower pay
4) flexible contracts may leave workers short of money in between jobs
advantages of flexible labour markets (4)
1) firms will be more efficient and competitive
2) increased productivity due to competition for jobs- increase in output
3) lower rate of unemployment
4) many people will prefer flexibility as it suits their lifestyle (working parents)
impacts of ageing population
-decrease in size of labour force as a proportion of the population; labour shortages and wage increases
-increase in dependancy ratio; gov’t pays more, gets less
- changing demand within product markets
-increase demand for certain types of labour; nursing
(however, impact offset by net migration)
dependancy ratio
% of economically inactive to the economically active
responses to ageing population (6)
1) raise retirement age
2) adopt more flexible lab mkt practises
3) more flexible pay
4) reduce value of state pension
5) value older workers- experience and productivity
6) encourage immigration
impact of net migration (4)
- increase in supply of labour
- skilled labour
- offset impact of ageing population
- in periods of cyclical unemployment, migrants often return home thus forming a counter-cyclical factor
problems of net migration (3)
- overcrowding
- migrants statistically more likely to work in black market
- some feel migrants take existing jobs; exacerbating unemployment
impact of EU on UK labour markets (4)
EU legislation has sought to protect workers through:
- minimum wages
- maximum working week
- statutory rights for conditions of employment
- free movement of labour has led to net migration from Eastern Europe
regulation in leisure markets
involves government intervention to deal with abuses of monopoly power or collusive behaviour
