Th3.5: Labour Market Issues Flashcards
What are the first four labour market issues?
skills shortages
young workers
retirement
wage inequality
What are the final three labour market issues?
zero-hour contracts
the ‘gig economy’
migration
Skills shortages
the UK suffers from geographical and occupational immobility, which means that even if there are enough engineers, there aren’t enough engineers in certain areas
Young workers
workers who join the workforce during recessions tend to receive lower lifetime earnings than those who enter the labour force in better times. during hard times firms are unlikely to hire but are reluctant to let go of their current workers - hard for youths to get job
Retirement
rising life expectancy and an increase in the number of people reaching retirement age has negative affects on the government budget. pensioners now makeup over 50% of welfare spending. the retirement age will continue to increase
Wage inequality
over time, those on the highest wages have seen their wages grow by a bigger percentage than those on the lowest wages. this is a contentious issue and raises question over relative poverty and the level of redistribution required
Zero-hour contracts
there has been a rise in zero-hour contracts and this causes problems for employees who do not know how much they will earn a week and receive little notice of when they will be required to work
The ‘Gig economy’
many more people are now self-employed and undertake short term contracts, working for companies such as Uber and Deliveroo. there are concerns over the rights of these workers and the unreliability of their pay each week
Migration
many people suggest that migration causes a fall in wages but it allows employers to recruit from a larger pool of workers and helps to fill skill shortages
There are also issues over the correct level of…
correct level of unemployment, underemployment, the minimum wage, conditions in work e.t.c
