Case study rural areas

Keuruu is the sixth largest municipality in Central Finland by population and is situated just 80 kilometres from the regional capital, Jyväskylä (Keski-Suomen liitto 2021; Keuruu website). Despite its strategic location, recent studies highlight Keuruu’s limited engagement in multilocal living, which is evidenced by low frequency of travel for work, education, or leisure (Lehtonen et al. 2023). There has been minimal public sector support for remote working, yet there is an untapped potential linking long-term development and remote working, as indicated by surrounding regions and education sector initiatives (Interviewees 1, 2 and 3). The surrounding Central Finland has been at the forefront of support for remote work, setting a precedent that Keuruu might well consider for future development (Interviewee 4).

Keuruu has a population of around 10,000, with the main township being home to 6,000 residents (Keuruu.fi). Projections indicate a stable demographic with a slight anticipated dip of 2% by 2030, though the working population might face a sharper decline (Keski-Suomen liitto 2021). Despite this trend of a contracting population, especially among working-age individuals, the allure of the Keuruu lakeside and its 2,000 second homes remains strong (Aro 2019). ). The slight increase in remote workers during the pandemic was somewhat visible in the municipality, for example, with an increase in participation at village association events and the council of summer house owners (Interviewees 1, 2, 3).

The population of Keuruu has been steadily decreasing for decades with a 10–15% decrease over the last ten years. As for the birth rate, it has decreased by 36% over the last decade, and at an approximate rate of 0.9%/year over the last five years. The population of people of working age has also decreased by 2%. The pandemic had no effect on the birth rate with the population continuing to decrease even then. The population of Keuruu has decreased particularly in the urban area of the municipality, while the situation in the more sparsely populated areas has remained relatively unchanged. The old-age dependency ratio of Keuruu is significantly higher than the national average and, according to estimations, there will be 85 elderly people per 100 hundred people of working age by 2040 as the proportion of people of working age may decrease to 25%. (Aro 2019; Keski-Suomen liitto 2021).

The municipality’s financial challenges have led to reduced public services, together with cutbacks to state funding post-healthcare reform, highlighting the need for innovative economic change (Mertaniemi 5.4. 2023). In 2023, Keuruu’s employment rate was slightly higher than the national average (TEM 2023). Within an hour of travel of Keuruu, there are around 215,000 people and 82,000 jobs. A positive characteristic of the labour market is that only 2.1% of the population is considered as long-term unemployed. The number of private enterprises has been on the decrease in recent years, but it is still above the national average with 70.3 companies per 1000 inhabitants. (Aro 2019).

There is no remote work-focused strategy in place in Keuruu or the Central Finland region. Although Finland supports remote work as a policy goal and has conducted several studies on the matter, there is no specific remote work strategy at national level. Rather, the expectation is that regions and municipalities make their own decisions. Associations such as the Association of Finnish Villages have already developed their own projects linking remote work with rural attractiveness. (Interviewees 1, 2, 3 and 4; Rannanpää and Hovi 2021). Indeed, instead of official strategies and policies, work done to support remote work in Keuruu has been conducted in the form of projects, either on the municipality’s own initiative or with external funding (often from EU funds). The target groups of these projects have most often been young people or returnees (people who have lived in Keuruu before and still have ties to the place) (Interviewees 1, 2). It is likely, however, that the regional council of Central Finland will highlight the issue in its next regional development strategy (Interviewee 4).

The municipally-owned business development company Keulink works with projects and campaigns aiming to increase the number of people moving to the municipality, and to improve the overall quality of life and work in Keuruu to keep people there. In addition, there have been EU-funded projects in the Central Finland region, working under the LEADER groups or the regional association of Central Finland, for example.

Remote work is regarded as an essential part of developing the industry sector in many municipalities. Therefore, several municipalities of Central Finland have taken action to begin supporting their citizens’ remote working opportunities by establishing remote work hubs. The main reason to work at a hub instead of at home is reliable and fast internet connections, but there is also the important benefit of being able to network and build new types of working communities. The Central Finland municipalities of Viitasaari, Äänekoski, Pihtipudas and Jämsä have been leading the way here, and other initiatives are planned elsewhere. In addition to office spaces, some hubs also offer meeting rooms, connect with local educational institutions for collaborations or provide other private services (Interviewee 4).

Compared to its neighbours, Keuruu has not supported remote working hubs to the same extent as a municipality, which demonstrates the existing potential for the public sector to take action. The municipal economic development company Keulink opened a remote workspace in Keuruu in 2021, repurposing their empty offices as workspaces for remote workers or cooperation partners. In 2023, one municipal deputy suggested opening a shared house for small companies to have a proper space available to carry out their operations. The proposal was rejected by the municipal parliament as it considered that a shared space for remote work and education would be more useful (Mertaniemi 15.2. 2023). Currently, a more official municipal remote workspace is missing, which also limits the municipality’s potential to attract remote workers. Offering physical spaces for remote work is both an important way to build new communities and to demonstrate that the municipality is committed to supporting this new way of working (Interviewees 1,2).

Municipal campaigns led by the company Keulink have succeeded in increasing the attractiveness of the municipality and adding awareness of its remote work opportunities. The main target group of these campaigns has been people who have lived in Keuruu before and might be inclined to move back. One campaign launched in 2021 was called “Kokovartaloelämä Keuruulla” (“Full-body life in Keuruu”). During the campaign, people were invited to ask for offers from the municipality to help them relocate to Keuruu. The campaign will start again in the autumn of 2023 (Interviewees 1, 2, 3; Munkeuruu.fi).

There are several multilocal education models in place under the Monikampus Finland initiative that aims to offer a wider range of education options with interregional collaboration. Currently, the only secondary education available in Keuruu is a high school, and by collaborating with other regional educational institutes such as the Jyväskylä Educational Consortium Gradia, it has become possible to offer a degree program in nursing, training programs for recruiting and other education options. The initiative continues to identify the possibilities and interests of local young and unemployed people, as well as to map potential distant working spaces. This work has been done mainly in the framework of pilot projects, and there is a goal to establish a distant learning venue in the future to create a more unified campus for distant learning as well (Monikampus Finland 2023; Antila 2023).

Viable remote connections also attract people who come to the municipality to work or study physically, as a way for them to stay in touch with their home area after leaving. For example, several high school students from countries like Myanmar, Vietnam and Iran are studying in Keuruu and several of them have reported an interest to remain in the area (Interviewees 1, 2, 3).

The barriers to remote working are very similar across Finnish municipalities. In simple terms, they are related to the digital infrastructure, availability and quality of other municipal services, and how well workplaces have organised their remote work structures (Interviewee 4).

The digital infrastructure of Keuruu, namely the lack of broadband connections, is a major barrier for increasing remote working possibilities in the municipality. Since the situation is much better in neighbouring municipalities like Jämsä, where investments in fibre optic connections have been made, it is difficult for Keuruu to appear more attractive. In Jämsä, it has been noted that apartments with fibre optic connections sell significantly faster than those without. (Interviewees 1,2 and 3). Digital infrastructure can be improved either by investing in fibre optics or by establishing remote working hubs, which is less costly (Interviewee 5).

In addition to services directly linked to supporting remote work, the capacity of the municipality to offer an all-around quality of life is important. Simply put, remote work opportunities do not constitute a reason to move somewhere but they are essential for enabling such a decision (Interviewee 4). Here, the availability and quality of public and private services, recreational opportunities and housing play an important role, as well as the surrounding nature. These characteristics are often well-known by the people already living in the area, therefore marketing and branding could help make them better known to people interested in remote working in Keuruu. It would also be beneficial to lift some barriers such as the difficulties newcomers might face in finding information on public and private services (Interviewees 1, 2, 3, 4). However, it is likely that people already living in the area or who own summer houses there will benefit most significantly from remote work opportunities (Interviewees 4, 5).

The experts interviewed agree that the most effective way to increase the attractiveness of the municipality in terms of remote work is to target people who already have a link to the place. In addition to returnees, this can also include summer house or second home owners. Other municipalities in Central Finland have already taken actions to support summer house owners in transforming their summer houses into year-round homes, for example by making zoning adjustments. Another group of people who may consider relocating there, are those who live elsewhere but visit Keuruu as remote workers. Other municipalities are already finding ways to attract these remote workers to the area so that they stay for longer periods and possibly even consider moving there. Remote work can thus affect the future development of a place in two ways, either regarding the people living in Keuruu and working elsewhere or the other way around (Interviewees 1, 2, 3, 4).

Remote work impacts a municipality’s future development in two ways: either by having people living there and working elsewhere or vice versa. Both ways are important tools for a municipality to improve its vitality and maintain essential services. Enabling people to work elsewhere while living in a rural place like Keuruu helps combat out-migration (especially of people of working age) and maintain public services and recruiting people who will continue to live in urban areas, for example, makes it easier to find workers who possess certain skills.

Remote work can improve the vitality of a municipality both directly and indirectly. An example of a direct improvement is establishing a remote working hub in a municipality as it offers an alternative to working from home for remote workers and benefits from secure internet connections. Whereas an indirect improvement would emerge organically, for example, after several knowledge workers start to form their own communities around municipal remote work hubs. As a result, municipalities have developed new innovation environments, meeting places and improved private services that may continue to attract more remote workers and give birth to new ideas. In some municipalities, remote working hubs have extended to environments that also include educational institutions.

The potential for remote work to keep a skilled workforce in an area is more significant than that of attracting completely new residents. Another important target group is people who already have a link to the municipality, such as summer house owners or possible returnees.

Remote work has become an essential part of modern working culture and something much deeper than a result of the COVID pandemic. In larger cities, its development is driven by the private sector, but in smaller rural municipalities, the first supportive actions need to come from municipalities. Therefore, remote working opportunities (internet connections and hubs) are becoming such an essential part of rural vitality that they could be considered an essential public service.