Labour is a relatively less mobile factor of production. Several factors obstruct mobility of labour.
These localisation factors affecting labour are as under:
1. Climate:
Persons living in a cold region may not like to move to a tropical region. Caste, religion, customs and tradition may also obstruct mobility of labour.
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2. Social relations:
Normally, people prefer to live with their families, friends and relatives. They are, therefore, reluctant to work at a place far away from their native areas.
3. Housing problem:
In big cities and industrial towns there is acute shortage of houses. Therefore, workers are reluctant to migrate to these areas.
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4. High cost of living:
The cost of living in industrial areas is quite high. Moreover, considerable expenditure is involved in moving from one place to another.
5. Political reasons:
In some states, local people are given priority in employment. This inhibits geographical mobility of labour. In addition law and order problems and fear of an unknown place may reduce mobility of labour.