Syllabus: Cambridge - IGCSE Economics
Module: 1.2 The Factors of Production
Lesson: 1.2.2 Mobility of the Factors of Production
Jump to Section:
Introduction
This lesson supports the Cambridge IGCSE Economics specification, specifically section 1.2.2: Mobility of the Factors of Production. As part of the wider “Factors of Production” unit, this topic deepens learners’ understanding of how economic resources shift between uses and locations. For teachers and careers leads, it offers a natural opportunity to blend curriculum content with Gatsby Benchmark 4, connecting classroom learning directly to real-world employment dynamics.
Understanding factor mobility is crucial for students exploring how economies respond to change, how businesses adapt, and how individuals navigate the job market. It supports broader outcomes in commercial awareness, decision-making, and workplace readiness, aligning with the Enterprise Skills framework.
Key Concepts
The Cambridge IGCSE Economics syllabus defines mobility of the factors of production as the ability of land, labour, capital, and enterprise to move between different uses or locations. Key syllabus-aligned concepts include:
Occupational Mobility: The ease with which a factor of production can move between different types of jobs or uses. For example, a factory worker retraining to become a delivery driver.
Geographical Mobility: The ease with which factors can move between locations. For instance, a construction firm relocating equipment and staff from London to Manchester.
Barriers to Mobility:
For labour: Skills mismatch, housing availability, language or cultural differences.
For capital: Regulatory restrictions, installation costs, obsolescence.
Implications for Efficiency: High mobility allows faster economic adjustment to change, improving productivity and reducing unemployment.
These concepts offer a foundation for real-world discussion on structural unemployment, retraining policies, and labour market dynamics.
Real-World Relevance
Factor mobility is not just an academic concept—it underpins national economic agility and personal career prospects.
Post-COVID Labour Shifts: Hospitality and retail sectors experienced sharp job losses, requiring occupational mobility as many workers retrained in logistics and health care.
Remote Work Revolution: Geographical mobility has shifted dramatically with digital tools enabling roles to relocate globally, not just locally. Tech companies like Spotify and Salesforce have adopted “work from anywhere” models.
Construction Sector Case: The HS2 rail project requires both occupational and geographical mobility. Workers from across the UK and Europe have been redeployed as timelines change and regional sites open or close.
Bringing these examples into the classroom helps students see how economic theory explains news headlines, career changes, and everyday working life.
How It’s Assessed
In Cambridge IGCSE Economics, this topic appears in Paper 1 (Multiple Choice) and Paper 2 (Structured Questions).
Typical question types include:
Definition-based:
“Define occupational mobility of labour.”
Data or scenario analysis:
“Explain two reasons why labour may not be geographically mobile.”
Extended reasoning:
“Discuss the effects of limited capital mobility on a country’s economic development.”
Command words to note:
Define: Provide a clear, concise meaning.
Explain: Demonstrate understanding with reasons or examples.
Discuss: Consider advantages and disadvantages or present a balanced argument.
Mark schemes reward clarity, application of economic terms, and use of relevant examples. Encourage students to draw on local or topical issues to gain higher marks in evaluation questions.
Enterprise Skills Integration
Mobility of production factors offers rich opportunities to build decision-making, problem-solving, and commercial awareness.
Decision-Making: Students can explore choices faced by workers or businesses relocating, weighing pros and cons such as cost, family impact, and economic conditions.
Problem-Solving: Case studies (e.g. retraining initiatives in the NHS or logistics sector) can form the basis of class debates: “How should the government respond to low occupational mobility?”
Commercial Awareness: Understanding why and how resources shift within industries reinforces how real businesses operate, helping students grasp the fluidity of today’s job market.
Use of simulations or role-play (e.g. acting as a regional planner deciding where to move skilled workers) further enhances engagement.
Careers Links
This topic links closely to Gatsby Benchmarks 4, 5, and 6:
Benchmark 4 (Curriculum Learning to Careers): Explaining labour mobility links directly to careers education by showing students how skills affect job options.
Benchmark 5 (Employer Encounters): Invite local HR managers or public sector staff to discuss recruitment challenges tied to factor mobility—real-world insight boosts engagement.
Benchmark 6 (Workplace Experiences): Encourage students to reflect on work experience locations, identifying geographical or occupational mobility factors.
Relevant careers include:
Human Resources (talent mobility strategies)
Urban Planning (infrastructure and resource allocation)
Economics and Public Policy (designing training or relocation schemes)
Logistics and Operations Management
Discussing these roles enhances students’ career confidence and awareness of labour market realities.
Teaching Notes
Top Tips:
Use Local Contexts: Ask students to identify jobs in their area that require mobility (e.g. seasonal agricultural work, NHS staff moving between trusts).
Roleplay Activities: Assign roles like a worker, employer, and policymaker deciding whether to retrain, relocate or invest—encourages empathy and economic reasoning.
Connect with Current Affairs: Use case studies such as NHS workforce planning or Brexit-related relocation of industries.
Common Pitfalls:
Confusing Types of Mobility: Reinforce the distinction between occupational (change of job type) and geographical (change of location).
Oversimplifying: Avoid framing mobility as simply “good” or “bad”. Discuss trade-offs, such as family disruption or housing shortages.
Extension Opportunities:
Debate: “Should the government pay for people to move for jobs?”
Research Task: Investigate a major infrastructure project and how it influences factor mobility.
For cross-curricular enrichment, link to Geography (regional development), Citizenship (government policy), or English (evaluating sources and forming arguments).
