Immobility of labour

Question 1

What are the economic impacts of the immobility of labour

Answer 1

• productive inefficiency
• inequality across the UK caused by the decline of industry in certain regions (leading to occupational immobility)

Question 2

How do the natural market forces worsen the inequality caused by the immobility of labour

Answer 2

• High skilled workers leave an already struggling region to areas that are prospering
• Businesses choose more prosperous areas to locate due to this higher skilled work force

Question 3

What are the solutions to occupational immobility

Answer 3

Education and training to improve skill level of employees

Question 4

What are the solutions to geographical immobility

Answer 4

• regional enterprise zones with tax exemption for businesses
• subsidies/grants on investment in certain regions
• infrastructure improvements to improve communication and transport within a region