(a) Explain the term mobility of labour. (b) Why may labour as a mobile factor of production be unwilling to move?

Answer Details

(a) Mobility of labour. Mobility of labour is the ease with which workers can move from one job, occupation or place to another. It has two forms. Geographical (place) mobility is the movement of labour from one location or region to another in search of work. Occupational (vertical and horizontal) mobility is the movement of labour from one occupation, trade or grade to another. A factor is mobile when such movement is easy and immobile when it is difficult.

(b) Why labour may be unwilling to move.

• Family and social ties. Reluctance to leave family, friends, community and familiar cultural or religious surroundings.
• Cost and difficulty of housing. High cost of accommodation and the expense of moving to a new area.
• Ignorance of opportunities. Lack of information about jobs, wages and conditions available elsewhere.
• Lack of required skills or qualifications. A worker cannot move into an occupation for which he is not trained, and training is costly and slow (occupational immobility).
• Differences in language, climate or customs. Fear of an unfamiliar environment in the new area.
• Pension, promotion and seniority rights. Loss of accumulated benefits, seniority and prospects tied to the present job.
• Job security and uncertainty. Fear that the new job may be less secure than the present one.

Examination reminder: separate reasons that block geographical movement (family ties, housing, distance) from those that block occupational movement (lack of skill, cost of training), as the examiner looks for both dimensions.