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E3. Unemployment will likely increase in the short term.
Submitted by Jeremy on December 1, 2007 - 4:36pm.
Unemployment is likely to increase, at least initially, as businesses struggle to adjust to higher energy prices by changing business models or closing their doors. The middle class may shrink as people fall into lower income brackets and purchasing power is reduced. Increased numbers of unemployed workers will add stress to social services systems, including the Oregon Food Bank, the Oregon Health Plan, Low-Income Home Energy Assistance Program, Section 8 Housing and others.
It is unclear how severe or permanent this impact will be. If the decline in oil and natural gas production is rapid or unsteady, the unemployment problem will be more serious. Over time opportunities in renewable energy, goods and services that increase energy efficiency and other fields that may experience growth in the post-peak environment could offset job losses in other sectors, although the extent of this is uncertain.
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