1 markWhich of the following is key factor influencing labour demand?
The level of education and skills of the workforce
The government's monetary policy
The availability of natural resources
The number of firms in the stock market
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1 markWhich of the following can increase the demand for labour in an industry?
An economic recession
A decrease in consumer demand
Technological advancements that require skilled workers
High inflation rates
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1 markWhat can reduce the supply of labour in an economy?
Higher wages
Increased job opportunities
A decrease in the retirement age
Lower levels of education and skills
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1 markWhat is a key factor influencing the decision of individuals to participate in the labour force?
Government regulations
The availability and value of welfare benefits
Educational attainment
Interest rates set by the central bank
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1 markWhat does geographical immobility of labour refer to in economics?
The ease with which workers can change their occupation
The ability of workers to move between different regions for employment
The supply and demand for labor in a specific market
The level of education required for certain job positions
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1 markWhich of the following best describes occupational immobility of labour?
The ability of workers to adapt to changes in consumer preferences
The ease with which workers can change their location for work
Workers' inability or unwillingness to change their career path
The influence of demand and supply in the labor market
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1 markWhat is the primary goal of setting a minimum wage in an economy?
To ensure that highly skilled workers are paid fairly
To allow employers to pay workers as little as they want
To establish a basic wage floor for workers to prevent exploitation
To promote competition amongst businesses
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25 marksIn July 2017 it was announced that only a third of the BBC’s 96 top earning presenters were women and that its seven highest-paid presenters were all men.
According to the High Pay Centre, in 2018, UK chief executives can earn 120 times more than the average full-time worker earning £28 758.
With reference to an industry of your choice, evaluate why wage differences exist within the UK labour market (25)
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25 marksEvaluate the microeconomic and macroeconomic effects of a decline in the literacy and numeracy skills of a country’s young workers.
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15 marksWith reference to Extract C and your own knowledge, discuss policies businesses and government might implement to reduce labour immobility to benefit the energy sector (15)
Extract C
Skills shortages in the UK energy sector
The energy sector is facing a skills shortage of engineers and technicians. Some 29% of employers in the gas and electricity industries report unfilled job vacancies compared with an average of 18% across all industries.
A lack of information and advice on career prospects for young people is partly to blame - many graduates have a negative image of the work involved. There is also a lack of students taking science, technology, engineering and maths-based subjects at school and university. Less than one-fifth of the energy sector’s workforce are women.
The energy sector is characterised by an ageing workforce - data from the UK Labour Force Survey reveal that around two-thirds of workers are aged over 50. These cannot easily be replaced as a long time period is required for training and developing workers’ skills in a highly regulated industry.
Urgent action is required by businesses and the government to reduce labour immobility to benefit the energy sector. This action could include policies to increase investment in training programmes, recruit skilled workers from overseas, change the industry image and deal with its ageing workforce.
(Source: adapted from ‘Sector insights: skills and performance challenges in the energy sector’, by the UK Commission for Employment and Skills, March 2015; gov.uk/government/uploads/system/uploads/attachment_data/file/416998/15.03.25._Energy_SLMI_-_evidence_report.pdf)
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5 marksWith reference to Extract C , define labour immobility and explain one way in which it can contribute to structural unemployment
Extract C
Skills shortages in the UK energy sector
The energy sector is facing a skills shortage of engineers and technicians. Some 29% of employers in the gas and electricity industries report unfilled job vacancies compared with an average of 18% across all industries.
A lack of information and advice on career prospects for young people is partly to blame - many graduates have a negative image of the work involved. There is also a lack of students taking science, technology, engineering and maths-based subjects at school and university. Less than one-fifth of the energy sector’s workforce are women.
The energy sector is characterised by an ageing workforce - data from the UK Labour Force Survey reveal that around two-thirds of workers are aged over 50. These cannot easily be replaced as a long time period is required for training and developing workers’ skills in a highly regulated industry.
Urgent action is required by businesses and the government to reduce labour immobility to benefit the energy sector. This action could include policies to increase investment in training programmes, recruit skilled workers from overseas, change the industry image and deal with its ageing workforce.
(Source: adapted from ‘Sector insights: skills and performance challenges in the energy sector’, by the UK Commission for Employment and Skills, March 2015; gov.uk/government/uploads/system/uploads/attachment_data/file/416998/15.03.25._Energy_SLMI_-_evidence_report.pdf)
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