Between 2009 and 2014, Delaware was the only US state to experience a fall in earnings. In the same period, however, it had an unemployment rate below the national average and a higher proportion of workers belonging to a trade union. The state is forecast to have one of the fastest ageing populations of any state in the USA in the next twenty years.

Mark scheme

Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.

1. [1] (a) An association/body/group/organisation
2. [1] (a) which represents its members/workers by protecting workers' rights/seeks to improve workers' pay and/or working conditions
3. [1] (b) A change to a lower paid job
4. [1] (b) a worker may decide that non-wage factors, e.g. working conditions, are more important than wages
5. [1] (b) A reduction in the hours worked
6. [1] (b) a worker may decide to do less overtime or may decide to switch to part-time work
7. [1] (b) A replacement of some earnings by fringe benefits
8. [1] (b) an employer may cut wages in return for increasing fringe benefits such as free housing
9. [1] (b) A decrease in output produced
10. [1] (b) a worker paid by piece rates will be paid less if their productivity falls
11. [1] (b) A reduction in demand for labour
12. [1] (b) caused by a fall in demand for the product/recession
13. [1] (b) An increase in the supply of labour
14. [1] (b) caused by immigration
15. [1] (b) Weaker trade unions
16. [1] (b) weaker trade unions will have less bargaining power to protect workers' wages
17. [1] (b) Inflation
18. [1] (b) real wages will fall if wages rise by less than the inflation rate
19. [1] (b) Firms may want to cut costs of production
20. [1] (b) to increase or maintain profits
21. [1] (b) A rise in (direct/income tax) taxation
22. [1] (b) reducing disposable/net earnings
23. [1] (c) A lack of total demand
24. [1] (c) low output
25. [1] (c) cyclical unemployment
26. [1] (c) Lack of skills/qualifications/training
27. [1] (c) resulting in occupational immobility
28. [1] (c) A lack of geographical mobility
29. [1] (c) caused by e.g. differences in house prices
30. [1] (c) resulting in regional unemployment
31. [1] (c) Decline of domestic industries
32. [1] (c) resulting in structural unemployment
33. [1] (c) Workers being replaced by machines
34. [1] (c) resulting in technological unemployment
35. [1] (c) A time delay between workers changing jobs
36. [1] (c) lack of information about job vacancies
37. [1] (c) frictional unemployment
38. [1] (c) High unemployment benefits discouraging people from seeking employment
39. [1] (c) voluntary unemployment
40. [1] (c) Demand for labour may fall at certain times of the year
41. [1] (c) resulting in seasonal unemployment
42. [1] (c) example
43. [1] (d) A rise in the average age from a young age
44. [1] (d) may increase the size of the labour force
45. [1] (d) which may reduce dependency ratio
46. [1] (d) Older workers may be more experienced/skilled
47. [1] (d) more reliable
48. [1] (d) leading to higher productivity/efficiency
49. [1] (d) resulting in higher economic growth/lower unit costs
50. [1] (d) May indicate longer life expectancy/better health
51. [1] (d) higher living standards
52. [1] (d) raising the level of economic development
53. [1] (d) The outcome will depend on the cause
54. [1] (d) may be the result of a fall in the birth rate
55. [1] (d) or a fall in the death rate
56. [1] (d) May increase need for healthcare
57. [1] (d) tax revenue used to provide healthcare could have been used for another purpose/opportunity cost
58. [1] (d) example
59. [1] (d) Increase cost of pensions
60. [1] (d) which may require higher taxation
61. [1] (d) which may place a burden on workers
62. [1] (d) May increase dependency ratio
63. [1] (d) more non-workers will have to be supported by fewer workers
64. [1] (d) Reduce mobility of the labour force
65. [1] (d) older workers may be less geographically/occupationally mobile
66. [1] (d) Older workers may be less familiar with advances in technology
67. [1] (d) less productive