3.4.3 The Geography of Labour

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Businesses need people: as labour and as customers.  The geography of wealth creation, as described in the previous section (3.4.2), is therefore a key driver of population movement and is also driven by it.  Movements in population are also driven by social and political factors.  They are inevitable and are increasing in scale.  The economic consequences are described in the following sub-sections:

  • Populations grow and shrink for several reasons, and so do employment opportunities. There are constant imbalances between the supply of labour and the demand for it (3.4.3.1).
  • If businesses move work elsewhere, or the population increases beyond the point where jobs can be provided for it, the shortage of work has a local economic impact (3.4.3.2). Some people then move away to find work elsewhere.
  • People migrating to an area, for whatever reason, have a broadly positive effect on that area’s economy (3.4.3.3).

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