Factor Immobility

Question 1

What is occupational immobility?

Answer 1

When workers cant move between different jobs because they lack the skills needed. This leads to labour market failure and structural unemployment.

Question 2

What is structural unemployment?

Answer 2

When workers are unemployed because the economy changed structure

Question 3

How can the government intervene to fix occupational immobility?

Answer 3

Providing:
Education
Training
Apprenticeship schemes

Question 4

What is geographical immobility?

Answer 4

When workers struggle to move between different areas. This leads to labour market failure as workers will be unemployed since they cant move locations.

Question 5

How can the government intervene to fix geographical immobility?

Answer 5

Improving transport
Providing relocation subsidies

Question 6

Examples of factor immobility

Answer 6

In 1980s, Thatcher closed down coal mines leading to occupational unemployment as workers cannot find new jobs due to lack of skills.