IGCSE Economics 0455: Occupational and Geographical Mobility of Labour

A coal mine closes, making 400 miners redundant. At the same time, a new solar farm 15 km away is advertising 150 vacancies for solar panel technicians, paying more than the miners used to earn. Most of the redundant miners do not have the electrical and technical qualifications needed for the technician roles. A small number of miners do have transferable skills that would qualify them for similar mining jobs, but these jobs are only available at a mine 300 km away, and most of these miners are unwilling to apply.

(a) State what economists mean by the "occupational mobility of labour". [1]

(b) Using the scenario, explain why most of the redundant coal miners are occupationally immobile, despite there being solar technician vacancies nearby. [2]

(c) State what economists mean by the "geographical mobility of labour", and, using the scenario, explain two reasons why miners with transferable skills might still be unwilling to take up the mining vacancies located 300 km away. [4]

Part (a): Defining occupational mobility of labour

Occupational mobility of labour refers to how easily workers can move from one type of job or occupation to another, for example, from working as a coal miner to working as a solar panel technician.

Part (b): Why the miners are occupationally immobile

Although there are 150 vacancies for solar panel technicians only 15 km away, most of the redundant miners do not hold the electrical and technical qualifications these roles require. The barrier here is not a lack of job openings, vacancies clearly exist, but a mismatch between the miners’ existing skills and the skills needed for the new occupation. This skills mismatch is exactly what makes a worker occupationally immobile: they cannot simply switch into a different line of work without first retraining.

Part (c): Geographical mobility and reasons for reluctance to relocate

Geographical mobility of labour refers to how easily workers can move location in order to take up a job.

Even the small number of miners who do have transferable skills for the mining jobs 300 km away may be reluctant to relocate for reasons including:

The cost of relocating: selling their current home, buying or renting in the new area, and covering the transport and other costs of moving a household can be expensive, and may not be worth it for the wage on offer at the new mine.
Family and social ties: moving 300 km away could mean uprooting children from school, separating from a partner’s job or local network, or moving away from extended family and friends. Disruptions many workers are unwilling to accept even for a better-paid job.

(Another acceptable reason: a lack of information about the distant vacancies, or about housing and living costs in the new area, which can also discourage miners from applying even when they are technically qualified.)

Final answers

(a) Occupational mobility of labour $=$ the ease with which workers can move between different types of job.
(b) The miners lack the electrical/technical qualifications the solar technician roles require, so a skills mismatch, not a lack of vacancies, makes them occupationally immobile.
(c) Geographical mobility of labour $=$ the ease with which workers can move location to take a job; miners may still be reluctant due to the cost of relocating and family/social ties (or a lack of information about the distant area).