1] The mobility of labour helps in increasing efficiency and productivity of workers when workers move to occupations for which they are suited the best.
2] Mobility influences production of goods and services. Demand for goods and services does not remain constant. Mobility of factors of production facilitates increase or decrease of production
3] The mobility of labour ensures that there is no surplus a d deficit in the labour supply in any area. Labour moves to areas where demand for it is high and wages are high. Workers move to areas where industries are expanding or where demand for labour is high. Therefore wages and salaries will be fair and cost of production will not change substantially.
4] It also increases workers incomes when they shift from low paid to high paid jobs.
5] It solves the unemployment problem when workers move to places where they are required and it reduces under employment Thus it make economic adjustments and avoids human suffering.
6] Mobility of labour helps in economic development when unemployed labour gets jobs in factories, shifts to public works like dams, roads, canals, etc.
7] A high degree of mobility of labour is also necessary to adjust or bring about equality between the supply of labour to changes in technology and demand for labour in different industries without affecting price.
8] Further if the population of the country increases, the younger people can enter new occupations and avoid old operations which are not remunerative.
It thus determines and increases production, employment and income.