Labour Market Factor Immobility

Courses Info

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes

Occupational Immobility – workers experience difficulty in moving from one job to another due to the lack of transferable skills they have
Geographical Immobility – workers experience difficulty in moving from one job to another due to the cost of movement and new location

Immobility suggests that the supply of labour and demand for labour is not equal. There is an excess supply for one job and excess demand for another

Training Schemes – investment into training schemes can boost human capital and equip them with new transferable skills, making them more employable when switching from one industry to another
Vocational Training – increasing the skill levels by subsiding the provision of vocational training by the private sector

Subsidies – provide subsidies for those moving into an area where there are shortages of labour
Housing Market – reformations in the housing market can reduce the price of rented properties and increase the supply of affordable properties

Quick Fire Quiz – Knowledge Check

1. Identify how market failure in Labour Markets may occur (2 marks)

2. Explain what is meant by ‘Immobility’ (2 marks)

3. Explain what is meant by ‘Occupational Immobility’ (2 marks)

4. Explain what is meant by ‘Geographical Immobility’ (2 marks)

5. Identify and explain two policies which can be implemented to reduce Occupational Immobility (4 marks)

6. Identify and explain two policies which can be implemented to reduce Geographical Immobility (4 marks)

Next Revision Topics

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