Immobility of Labour

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    Immobility of Labour

    There are two kinds of immobility of labour

    • Geographical immobility of labour is barriers to the movement of workers between different areas
      • When this occurs, shortages of workers in one area and surpluses in others are not corrected, leading to regional unemployment and geographical wage differentials continue to exist.
      • Geographical immobility occurs for a number of reasons, most notably are things like house prices or personal/family ties to the area.
    • Occupational immobility is the barriers to workers changing occupations
      • These obstacles can come in the form of the skills and qualifications required to do particular jobs
      • These barriers contribution to occupational wage differentials and structural unemployment.

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