Here is a superb news report from Channel 4 news about the shortage of skilled workers in the North East of England (an area of high unemployment). Nissan this week announced a big new investment in car making at their ultra-high productivity plant in Washington, Tyne and Wear. But many of the manufacturers along Nissan’s supply chain are finding it tough to get enough skilled people coming througth to make realistic bid for the orders that will come from Nissa. Some businesses are having to turn down contracts because they dont have the extra workforce to cope with the higher volumes of businesses.

Skills shortages are restricting the growth of many small and medium sized businesses especially in manufacturing. Little wonder that Nissan is working very closely with Gateshead College to run an apprenticeship scheme - an example of external economies of scale in action.

Key terms

Occupational immobility
Skills shortages
Skills gap
Human capital
Structural unemployment
Manufacturing
Capacity
Labour demand
Labour supply
Supply chain
Multiplier effect
Productivity

 

Featured
CPD courses

WOW! Economics 2015

WOW! Economics 2015 builds on the phenomenal success of the previous two years with yet another resource-packed day designed to provide teaching colleagues with effective and innovative teaching & learning materials. The feedback on WOW! Economics 2015 has once again been stunning - join Jonny, Bob, Nikki, Ruth, Penny and the tutor2u Economics team for this terrific CPD course.

Learn more ›

Teaching & learning products

Edexcel A2 Economics Worked Answers (2014)

Example A Grade answers to the Edexcel Unit 3 and Unit 4 exam papers sat in June 2014

£5.00

AQA A2 Economics Worked Answers (2014)

Exemplar A Grade answers to the ECON3 and ECON4 exam papers sat in June 2014

£5.00