Explain why some regions of the UK suffer from structural unemployment

AQA AS Economics Paper 2 June 2024 Insert

Explain why some regions of the UK suffer from structural unemployment. (10 marks)

1. structural unemployment is caused by a decline in certain industries.
2. this means that there is a mismatch in skills between workers and the current job market.
3. structural unemployment often becomes a long-term problem due to the occupational and geographical immobility of labour.
4. industries like steel have declined in the UK as it is now cheaper to import steel from countries like China, who are more competitive.
5. competitiveness refers to the ability of a country to sell its exports.
6. low demand for UK steel means low derived demand for steel workers in the UK.
7. extract F, line 4 mentions that 'low levels of literacy' are more likely to exist in poor regions.
8. this suggests that there is occupational immobility of labour in poorer regions in the UK, which is when workers find it difficult to gain new skills and transfer to a new job market.
9. structural unemploymeny be reduced through greater investment in education and training, as workers could gain more useful skills.
10. additionally, geographical immobility of labour might mean that workers cannot access jobs in other locations due to poor transport links.
11. the UK government have tried to reduce geographical immobility of labour by improving transport links but projects like HS2 are taking time.
12. the success of these projects would enable workers to access more jobs in other areas, despite their area lacking demand from businesses.

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