3.4. LABOUR MOBILITY
Labour immobility was discussed in the AS content but it is always good to re-go over it. It occurs when it is difficult for labour to move between areas of the economy. Labour immobility can be:
- Geographical – difficulty from moving from one geographical location to another.
- Occupational – difficulty from moving from one type of work to another.
Geographical Immobility
Unemployment tends to be higher in the North and lower in the South. There also tends to be more job opportunities in the South. So why don’t individuals move from places where there are few jobs if they are unemployed (the North), to the South where there are a greater amount of job opportunities.
Unemployment tends to be higher in the North and lower in the South. There also tends to be more job opportunities in the South. So why don’t individuals move from places where there are few jobs if they are unemployed (the North), to the South where there are a greater amount of job opportunities.
- The cost of moving. Literally the cost of moving all of your belongings from one location to another. Also, the cost of living in the south tends to be more expensive, which acts as a barrier. House prices and rents are higher, food and transport also tend to be higher as well.
- Lack of information. It may be the case that the unemployed workers do not know that there are jobs and accommodation available in another location.
- Personal ties. An unemployed worker may not want to leave a location because of ties to families and friends. They may also have children in a local school or a partner who is in employment.
Occupational Immobility
Occupational immobility is where workers do not have the skills that are required to obtain a job. There is a mismatch in skills between unemployed workers and the jobs that are available in that area. For example, a miner will probably not have the same skill level to work in a bank or IT. Occupational immobility is a big problem with structural unemployment. The way to overcome occupational immobility is to train and retrain workers with the skills that local employers want.
Occupational immobility is where workers do not have the skills that are required to obtain a job. There is a mismatch in skills between unemployed workers and the jobs that are available in that area. For example, a miner will probably not have the same skill level to work in a bank or IT. Occupational immobility is a big problem with structural unemployment. The way to overcome occupational immobility is to train and retrain workers with the skills that local employers want.