The output of regional economies in the North of England remains below potential, with labour productivity growth lagging behind London and the South East. A major factor is the persistent deficit in specialised skills, which hinders local businesses from adopting advanced technologies and expanding their operations.
To address this, business leaders argue that increased investment in education and vocational training is essential to build the region's human capital (Extract C, line 8). When firms can access a highly skilled local workforce, it reduces recruitment costs and improves operational efficiency.
Government-backed apprenticeship schemes and local enterprise partnerships (LEPs) have attempted to close this gap, but regional disparities continue to limit their effectiveness. Without robust supply-side interventions, regional inequalities in wages and living standards are likely to widen further.
Define the term 'human capital' (Extract C, line 8).
123 exam-style questions on AQA A Level Economics 1.1 Economic methodology and the economic problem, covering 1.1.1 Economic methodology, 1.1.2 The nature and purpose of economic activity, 1.1.3 Economic resources, 1.1.4 Scarcity, choice and the allocation of resources, and 1.1.5 Production possibility diagrams. Each one has a worked solution and a mark scheme showing where the marks go.