What Is Factor Immobility?

Factor immobility occurs when it is difficult for factors of production (e.g. labour and capital) to move between different areas of the economy. Factor immobility could involve: Geographical immobility – When it is difficult to move from one geographical area to another.

What is meant by factor mobility?

Factor mobility measures the extent to which factor inputs such as land, labour and capital can easily switch between alternative uses with no loss of efficiency.

What are the types of immobility?

There are two main types of factor immobility, occupational and geographical immobility. One of the main causes of unemployment is that workers lack the skills required by expanding industries in the economy.