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Supply of labour

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Question 1

Extract A – Nuclear Decommissioning Safety Engineers and Staffing

In October 2024, the Department for Energy Security announced a 3.5% pay increase for nuclear safety decommissioning engineers working at public cleanup sites. Government spokespersons highlighted that this was aimed at retaining highly specialised engineers who are increasingly being headhunted by private defense contractors and commercial fusion startups offering lucrative packages.

However, industry analysts argued that this increment fails to offset the cumulative decline in real earnings over the last decade. They pointed to public sector funding caps and strict Treasury limits on civil service pay scales. Table A.1 shows the average salaries for nuclear decommissioning engineers compared to the Consumer Price Index (CPI) since 2015.

Table A.1 – Average Nuclear Decommissioning Engineer Pay & Consumer Price Index (CPI) 2015–2025

YearAverage Annual Public Sector SalaryConsumer Price Index (2015 = 100)
2015£42,000100.0
2017£43,100105.1
2019£44,200109.4
2021£45,500114.2
2023£47,000126.8
2025£48,645134.5

Recruiting and retaining qualified safety engineers has become a critical bottleneck. The role is exceptionally demanding and highly technical. To qualify, safety engineers must possess an advanced MSc in Nuclear Physics or Radiation Safety, followed by a mandatory 4-year supervised site-licensing programme. Furthermore, many engineers view their work as a vital civic duty—a 'vocation' dedicated to national environmental preservation and securing hazardous waste for future generations. Consequently, their willingness to remain in these roles is heavily influenced by non-monetary factors rather than short-term salary adjustments. Additionally, strict national security clearance protocols block more than 80% of the engineering graduate pool from entering this sector due to rigorous background, residency, and citizenship checks.


Explain, using information in Extract A, two reasons why the wage elasticity of supply of labour for public sector nuclear decommissioning safety engineers is likely to be inelastic.

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Supply of labour Questions

  1. A Level
  2. /Economics
  3. /Supply of labour