Energy projects are usually large and impact local labor markets. Suppose a large energy project is being implemented in North-East of Edmonton which will employ approximately 10,000 individuals in the construction phase during the first two years and then 1,500 people in its operation stage after construction.

1. What impact do you expect this project to have on the labor market in Edmonton during the construction phase? Explain.
2. What impact do you expect this project to have on the labor market in Edmonton during its operation stage [after the construction]? Is this effect going to last forever? Explain.