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Labor mobility refers to the ease of changing jobs, affected by factors like education, training, and personal circumstances. High mobility can benefit economies, but also lead to lower wages and unemployment. Vertical mobility is ideal.
Labor mobility refers to the ease with which people can take advantage of new economic opportunities. When labor mobility is high, there are few barriers to changing jobs, and when it is low, people may encounter obstacles that make it difficult to take on new jobs. Greater labor mobility is believed to be better for the economy and for workers, but there are also some disadvantages that can be created by high mobility.
There are several perspectives in which labor mobility can be viewed. Job mobility itself is affected by many different facets. The first are systemic elements such as occupational training, demand for workers in a given sector and level of education. Well-educated and highly trained people experience more job opportunities, in contrast to people with low skills. Personal elements such as ability to relocate also play a role; people may not be able to move because they have a hard time selling a house, don’t want to uproot their children, or can’t afford the costs associated with moving. These two issues have an impact on the ability to get new jobs, but people also need to have a desire to find new work. Otherwise, there is no reason to look for and take advantage of new job opportunities.
Labor mobility can occur both within and between economies. Some nations, for example, are famous for hosting international workers, experiencing a high level of international labor mobility, while in other cases it can be difficult for people to move between economies. It may be geographical or occupational in nature; someone who moves to another country for work is demonstrating geographic mobility, while someone who transitions from one type of work to another is benefiting from occupational mobility.
Ideally, job mobility is vertical in nature, meaning that people move up the job ladder rather than remaining static with horizontal mobility. Someone who moves from restaurant to restaurant like a boy on a bus, for example, is stuck in horizontal mobility. On the other hand, someone who becomes a bus boy, a waiter, a floor manager, and then a restaurant owner is an example of someone who is experimenting with vertical mobility.
High labor mobility makes economies more flexible because workers can adapt quickly to changing market conditions and demand. It tends to increase productivity and helps industries and economies to grow. However, it also comes at a cost. A high supply of labor can drive down wages and can also contribute to unemployment when the supply of workers is greater than the demand.
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