Occupational Labor Mobility – Definition

Cite this article as:"Occupational Labor Mobility – Definition," in The Business Professor, updated July 29, 2019, last accessed October 25, 2020, https://thebusinessprofessor.com/lesson/occupational-labor-mobility-definition/.


Occupational Labor Mobility Definition

Occupation labor mobility is the potential of working class for making a switch between their careers. The objective behind switching is to get a more alluring employment opportunity or match up with labor requirements. The more the occupational labor mobility rates, the more the employment and productivity rates will be. Also, the government authorities offer occupational retraining to workers so that they can have the required skill set and accelerate the process.

A Little More on What is Occupational Labor Mobility

In case of occupation labor mobility being of limited nature, workers may find it hard to carry out fresh opportunities, especially during layoffs or termination. This covers all those workers who have less or specific skills that they can utilize under limited situations. For instance, a worker who knows how to install or run an equipment belonging to a specific industry may face difficulties getting employment opportunities beyond that industry.

When a person who is specialized in his/her career field, and is earning a good salary thinks of switching careers, he/she may encounter a noticeable change in his/her financial position. This is so because the different job options they have, won’t or may not ask to use their best skills acquired. For instance, in case of limited opportunities in the medical industry, doctors may have to work as a cab driver. These situations can result in lesser pay scale, and eliminate all the work experience that they obtained in the previous years.

Ways Occupational Labor Mobility Influences Productivity

Because of the rise in service-sector jobs, there is seen a significant decline in the job opportunities in the manufacturing industry. And this has negatively impacted the occupational labor mobility for many workers. For example, the automobile sector in the United States experienced continuing staff cuts when there was an efficiency in production levels, and needed lesser labor force. The terminations in local jobs affected the downside labor force, and made it difficult to find any employment opportunity that compensated them better than their last jobs. Labor force employed in other manufacturing-based jobs had to face problems of limited occupational labor mobility during the times when manufacturing sectors declined.

Workers have the opportunity to use private and public training programs, and learn considerable for improving their occupational labor mobility. These programs work with an objective to offer a broader range of prospective career paths so that these workers’ employment interests don’t get affected. Firms can gain a lot from the presence of these training programs as they improve the chances of hiring potential candidates for existing job vacancies.

Occupational labor mobility is beneficial for budding businesses as well as the ones who have creative and innovative ideas. If the workers’ skills are in demand, then these firms can see a rise in their productivity levels. For instance, a new company may not see any progress in its plans for its product or service until it employs a substantial number of programmers, software coders and developers.

References for “Occupational Labor Mobility”



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