Immobility of labour

• Labour immobility can occur when workers are unable to move to a new job due to a lack of skills or experience
• Geographical immobility of labour is when workers in an economy find it difficult to move from one region to another
• Occupational immobility is when workers are not equipped for different types of work
• How does the Immobility of labour lead to market failure?:

  • There is an inefficient allocation of resources due to geographical and occupational immobility
  • Therefore we are not working at full employment
  • This leads to market failure due to unemployment
• How does the Immobility of labour lead to market failure?:


  • There is an inefficient allocation of resources due to geographical and occupational immobility
  • Therefore we are not working at full employment
  • This leads to market failure due to unemployment
• How do we show the Immobility of labour on a diagram?

  PPF Curve showing the underutilisation of resources