Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What role does labor mobility play in controlling unemployment?

1. It restricts job opportunities

2. It allows workers to find jobs aligned with their skills

3. It increases the number of available jobs

4. It isolates workers from available job markets

The correct answer is: It allows workers to find jobs aligned with their skills

Labor mobility plays a crucial role in controlling unemployment by allowing workers to find jobs that are better aligned with their skills and qualifications. When workers are able to move freely between different jobs, regions, or industries, they can seek out opportunities that match their skill sets, interests, and experiences. This enhances the overall efficiency of the labor market, as it helps ensure that workers are employed in positions where they can be most productive. In contexts where there is a mismatch between labor supply and demand, high levels of mobility can mitigate unemployment by enabling workers to relocate to areas with more job vacancies or sectors that are hiring. This adaptability facilitates the matching process between employers and employees, contributing to lower unemployment rates and fostering a more dynamic economy. Job opportunities can greatly fluctuate across regions and industries due to varied economic conditions, and labor mobility helps to bridge gaps in these areas, leading to improved job market resilience.