Mobility

The evidence shows that moving job is the most effective way to secure a big pay rise, as well as boost someone’s skills and meet their needs. The biggest pay rises of all are associated with moves between jobs and to different parts of the country, and mobility is especially important for young people at the start of their careers. Job mobility also brings broader economic benefits too – by better matching workers with their skills it enables firms to become more productive, in turn further boosting wages and growth.

But despite these economic and living standards gains, levels of job mobility have stagnated in recent decades. Factors like the cost of housing can hamper individuals’ ability to change job, while low levels of unemployment support can make people more risk-averse – as workers take the first job available, rather than the best one for their skills and prospects.

Our research looks at the pace of job mobility and the structural economic factors underlying this. We also look at other impediments to worker labour market reallocation, including housing, education and skills, and what can be done to encourage more people to move around for the right jobs.