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Assess three government policy measures to increase labour mobility

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Introduction

Assess three government policy measures to increase labour mobility (12) Labour mobility refers to the freedom of workers to practice their occupation wherever opportunities exist. This may mean changing occupation (occupational mobility) or moving to work in another area (geographical mobility). A lack of mobility is identified as a cause of structural unemployment. This is where mismatches occur and unemployed workers are unable or unwilling to fill existing vacancies due to the skills shortages- occupational immobility or shortages in particular areas-geographical mobility Governments use various measures to improve mobility .In the UK these include the New Deal, job centres and affordable housing schemes in certain areas of the country. The New Deal is a key part of the government's strategy to get people back to work. It gives people on benefits the help and support they need to look for work including training and job preparation. ...read more.

Middle

Even more fundamental improvement is needed with skills training courses. This because many programmes are still not sufficiently work-based. Too many courses are too lax - or teach inappropriate skills. New incentives must be devised to involve more employers in the schemes. Job centres are created by the government in areas where people go to find jobs which match their skills. Employers in need of labour advertise their vacancies through these centres free of charge. This can solve labour immobility because it gives workers the opportunity to find jobs which match their skills not only in their local areas but throughout the country. However most highly skilled workers do not go to these centres as it is looked down upon as an area for unskilled unemployed people. Also the jobs advertised are low paid so people with aspirations of high wages are very reluctant to come to these places. ...read more.

Conclusion

Family, social or cultural ties to a particular area may prevent people from moving to different areas. Full employment is a key factor in the economic development of a country as it helps to increase the standard of living for its people. Labour mobility both occupationally and geographically will go a long way to help achieve this. In conclusion, I believe that the New Deal has been the most successful method of improving occupational mobility because it has helped people develop skills which can be used in industries where workers are needed. However a weakness of this is that not all the skills taught are relevant and there are still some areas where there is a skills deficiency. On the other hand the best method of tackling geographical immobility is the building of houses and giving benefits to doctors, nurses etc because it gives them an incentive to move to areas where their skills are needed. ...read more.

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