Labour Market Mobility refers to how easily people, or employees can move around in search of a job. Several factors prevent people from moving around freely, the skills and qualifications they possess is one thing. A lack of transferable skills acts as a barrier - if a worker is trained as a hairdresser they can not apply for jobs as an accountant for example. This is know an occupational immobility. Training and education can reduce occupational mobility but can be expensive and there is a time lag involved.
Geographical mobility is the ability of labour to freely move around in search of a job. In theory workers in the EU are free to work in any member country. In practice there are lots of barriers preventing people from moving to different countries. Family ties to a particular area often limit people in their search for jobs.
Another factor that makes moving to different parts of a country in search of a job is house prices. House price in London and the South East are often much higher than in other parts of the country as shown below.
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The demand for property increases for a number of reasons: Interest rates, consumer confidence, wages levels all affect house prices. Another interesting factor affecting house prices is immigration. Increased immigration increases the demand for houses, which pushes up the price. Citing immigration as a cause of increased house prices has lead to much debate in the UK. Political instability in the Middle East has lead to an increase in house prices in Dubai - people are moving from countries such as Syria to Dubai. Watch and read these links for more information:
Link 1
Video
Link 2
Link 3
Rising property prices as we looked at earlier can lead to factor immobility and market failure. There are often calls for the government to intervene and regulate the market. Have a read of this article HERE for more information.
Another method used to resolve factor immobility is rent controls. Tutor2U have created a revision presentation on the impact of rent controls.
Geographical mobility is the ability of labour to freely move around in search of a job. In theory workers in the EU are free to work in any member country. In practice there are lots of barriers preventing people from moving to different countries. Family ties to a particular area often limit people in their search for jobs.
Another factor that makes moving to different parts of a country in search of a job is house prices. House price in London and the South East are often much higher than in other parts of the country as shown below.
The demand for property increases for a number of reasons: Interest rates, consumer confidence, wages levels all affect house prices. Another interesting factor affecting house prices is immigration. Increased immigration increases the demand for houses, which pushes up the price. Citing immigration as a cause of increased house prices has lead to much debate in the UK. Political instability in the Middle East has lead to an increase in house prices in Dubai - people are moving from countries such as Syria to Dubai. Watch and read these links for more information:
Link 1
Video
Link 2
Link 3
Rising property prices as we looked at earlier can lead to factor immobility and market failure. There are often calls for the government to intervene and regulate the market. Have a read of this article HERE for more information.
Another method used to resolve factor immobility is rent controls. Tutor2U have created a revision presentation on the impact of rent controls.
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