The rapid transition of a nation's energy grid from fossil-fuel-dependent generation (such as coal-fired power stations) to offshore wind and digital grid-management systems has led to the decommissioning of several thermal power plants in industrial coastal regions. As a result, specialized engineers and plant operators in these regions are increasingly facing structural unemployment.
Which one of the following is the most likely consequence or characteristic of this structural unemployment?
Average real wages in the declining thermal power generation sector will rise as firms compete to retain skilled staff during decommissioning.
Geographical mobility of labour will spontaneously correct the localized decline in employment without any external government intervention.
Occupational immobility of the specialized power-plant workers will make it difficult for them to transition into expanding green sectors, such as offshore wind systems engineering, without targeted retraining.
The structural unemployment in these industrial coastal regions is likely to peak during seasonal periods of low energy demand, returning to zero in winter.
327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.