Canada experiences an increase in immigration. Many new workers seek jobs in construction. At the same time, some construction workers lose their jobs becau...
Question 1 Report
Canada experiences an increase in immigration. Many new workers seek jobs in construction. At the same time, some construction workers lose their jobs because new building methods require different skills.
(a) Which curve is likely to shift when immigration increases the number of workers willing to work in construction? [2]
(b) Draw a labour-market diagram showing the likely effect of an increase in the supply of construction labour on the equilibrium wage and quantity of labour employed. [2]
(c) Which type of unemployment is most likely to arise when workers' skills do not match the skills required by new building methods? [2]
(d) What is meant by occupational immobility of labour? [1]
(e) Which two factors may make workers geographically immobile? [2]
(f) State two ways in which education and training can reduce structural unemployment. [2]
(g) Which outcome is most likely if the supply of construction labour increases while demand for construction labour is unchanged? [2]
(h) State two pieces of information that could help an unemployed worker find a new job. [2]
(i) Which three factors could cause wage differentials between construction workers and office workers? [3]
(j) Which government action is likely to increase the long-run supply of skilled labour? [2]
Answer Details
(a) Labour supply shifts right because immigration increases the number willing and able to offer construction labour at each wage. [2]
(b) With unchanged demand, supply shifts from S1 to S2; wage falls and employment rises.
[2]
(c) Structural unemployment. [2]
(d) Occupational immobility is difficulty moving from one occupation to another, often because workers lack relevant skills or qualifications. [1]
(e) Any two: high housing costs elsewhere, family ties, moving costs, lack of job information, or difficulty selling a home. [2]
(f) Education and training provide new technical skills required by employers and recognised qualifications enabling workers to enter different occupations. [2]
(g) Equilibrium wage falls and equilibrium employment rises. [2]
(h) Any two: vacancies and wage rates; qualifications required; job location and transport; training courses; employers and working conditions. [2]
(i) Any three: different skill requirements, productivity, labour demand, unpleasant or dangerous conditions, union power, or labour supply. [3]
(j) Funding apprenticeships, subsidising training, expanding vocational education or allowing targeted skilled immigration raises long-run skilled labour supply. [2]
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