Åland is constituted of 6,757 islands, of which around 60 are inhabited, making up an archipelago situated midway between Sweden and Finland. Åland is part of the Republic of Finland but has an autonomous status, with its own self-governing parliament (Ålands Lagting) and government (Ålands Landskapsregering) (Info Norden, n.d.). Åland’s total land area is 1,553 km² and, as of 2021, Åland had a population of around 30,344 people (ÅSUB, 2022a).

Åland faces some challenges, with a worsening pattern of youth out-migration and brain drain (i.e. the departure of highly educated people). Particularly, it is the archipelago municipalities of Åland where depopulation is most pronounced. Proactive efforts to make Åland a more attractive place to work and live are needed to increase migration and population growth. Remote work is seen as an opportunity to attract a larger workforce, both in terms of labour coming from outside of Åland, but also to make Ålanders want to return (Lokalkraft Leader Åland, 2023). This case study explores how Åland responds to and approaches the development of remote work, looking more closely into the archipelago municipalities in Åland.

Remote work is prevalent in Åland, but not to the same extent as in the surrounding Nordic regions (ÅSUB, 2022b). Relocating to the archipelago or other rural areas is often a choice based on quality of life, and if remote work can be a way for people to support themselves in these areas, then there is the potential for remote work opportunities to increase migration. Therefore, remote work has been seen as a strategy for the development of the archipelago municipalities to increase migration, with proactive actions and projects being implemented since as early as 2006 (Skärgårdskommunerna, 2006).

Åland’s demographic composition presents significant contrasts, with its largest town, Mariehamn, mirroring urban dynamics, and smaller municipalities like Sottunga facing population scarcity (105 residents in 2021). There is therefore a large difference in terms of population size between the municipalities, especially between Åland’s largest municipality and only city, Mariehamn, and other municipalities (ÅSUB, 2022a). An aging demographic further complicates matters, with projections indicating a 25% elderly population by 2030 (Lokalkraft Leader Åland, 2023). Swedish is the official language of Åland, with the majority of Ålanders having Swedish as their native language (86%), and the rest having Finnish (4.6%) and other languages (9.4%) (ÅSUB, 2022a).

Åland, and especially Mariehamn, has seen a positive population growth over the last two decades (Info Norden, n.d.). However, the growth of the population with its migration surplus is not evenly spread across the municipalities in Åland, where some are showing a trend of out-migration. This trend is especially visible in the archipelago municipalities, which have seen a negative trend with a declining population and uneven demographic pyramids, resulting in increased strain on their economies (Företagsam Skärgård, 2019a). As mentioned above, there are 2,055 permanent residents in the archipelago municipalities, but during the summer the population increases significantly due to summer residents and other visitors. Over 30% (2,642 holiday homes) of approximately 8,550 Åland holiday homes are located in the archipelago (Lokalkraft Leader Åland, 2023).

The workforce in Åland is diverse, yet centralised, with most employment opportunities in Mariehamn. A healthy employment rate surpasses national Finnish and Swedish figures, with the public sector leading in terms of job provision. The private sector, heavily reliant on tourism and seafaring, complements the economic diversity, enriching the local cultural fabric (ÅSUB, 2021; Lokalkraft Leader Åland, 2023). According to a labour market barometer in 2022, the need for recruitment is expected to increase, especially for service and sales personnel, and specialists (Lokalkraft Leader Åland, 2023).

Åland’s economy is complex, with industries such as shipping retaining historical and cultural value, and contributing substantially to GDP and employment. The pandemic posed significant setbacks for tourism, but recovery is in sight, set against a backdrop of a high number of holiday homes spread across the islands (Lokalkraft Leader Åland, 2023).

Remote work opportunities vary across industries. Many occupational categories are essentially workplace-bound, such as primary production and service. Therefore, regions where these sectors are over-represented in the economy, theoretically have a lower percentage of remote workers (ÅSUB, 2022b). Remote work exists in Åland, but it is not as widespread as other regions in the Nordic countries. This may be connected to Åland’s local labour market. It is dominantly made up of sectors where remote work opportunities are limited (Ålands Landskapsregering, 2019). In theory, there is a 32% possibility of remote work in Åland (based on occupational classifications), which is lower than in neighbouring countries (ÅSUB, 2022b).

Mariehamn enjoys robust services, which is in stark contrast to some of the rural and archipelago municipalities where public and commercial amenities are faltering. There are growing concerns over urban centralisation, with predictions of potential decreases in rural services and tax revenue bases, especially in the archipelago. Innovative solutions are needed to bring these communities back to life (Lokalkraft Leader Åland, 2023).

There is no university in Åland, which means that many Ålanders choose to leave Åland to continue their studies in Sweden or Finland (Lokalkraft Leader Åland, 2023). Åland has a unique set up when it comes to housing and voting, known as the right of domicile (hembygdsrätt), a local citizenship (Ålands Landskapsregering, 2023).

Access to fast, reliable internet is a prerequisite for remote work. The infrastructural conditions for remote work are good in Åland, thanks to excellent fixed broadband and mobile network coverage. In 2021 in Åland, there was 96% access to fixed broadband at the speed of at least 100 Mbit/s, while mobile network coverage for 4G 100 Mbit/s was 76 (ÅSUB, 2022b). Early on, the archipelago municipalities identified the need for high-speed internet and the advantages it could have for the future development of the municipalities. As such, efforts to strengthen its digital connectivity were already made around two decades ago, with projects launched to build up a fibre network with stable internet connection for all archipelago municipalities (Interviewee 1).

In the Government of Åland’s strategic plan for opening up Åland again after the pandemic, remote work is perceived as an important factor in making Åland more attractive (Ålands Landskapsregering, 2021). Already in 2005, there were discussions on the need to draw up a strategy to promote remote work in the administration as soon as possible (Ålands Lagting, 2005). Although Åland has a policy goal of supporting remote work and has conducted several studies on the issue, there is no specific remote work-focused strategy yet in place by the Government of Åland. There are a lot of discussions going on, but there are few concrete measures in place linked to remote work.

Remote work has long been promoted as a potential development opportunity for the archipelago municipalities. Remote work is seen as an opportunity for attracting new people and businesses, changing the trend of out-migration and providing more work opportunities for the residents, where many are multi-skilled workers (Interviewee 1). Already in 2006, the archipelago municipalities of Åland developed strategies and actively worked on promoting remote work, as well as the possibilities to work and live in the archipelago. The six municipalities conducted a project on municipal cooperation with regard to stimulating remote work. The aim was to develop and highlight the remote work opportunities in the area, hoping to attract more people to live and spend time there. The project resulted in a brochure on flexible working models, a framework with recommendations and a checklist for a good remote work environment (Skärgårdskommunerna, 2006). The archipelago municipalities have continued to develop and promote remote work opportunities. Remote work is mentioned in the archipelago municipalities’ strategies and policies, with several projects aimed to develop the archipelago. One activity highlighted in the strategy for a thriving archipelago is stimulating and strengthening the conditions for remote work opportunities (Företagsam Skärgård, 2019a).

Åland wants to grow, in terms of more inhabitants, workplaces, businesses and annual overnight visitors. Therefore, the Ålandic government and several municipalities have taken action to support new residents wanting to relocate to Åland. Remote work is regarded as an important part of this development, but other supporting actions are also in place. The Åland Labour Market and Student Service Authority (Arbetsmarknads- och studieservicemyndighet, Ams) runs “Åland Living”, a website where you can find all the information you need to move to and study or work in Åland. In addition, they have developed a guide that contains tips and advice for those who want to work remotely from Åland, where it is possible to read more about taxation, qualification certificates and social security benefits, and to find an office hotel/coworking space (Åland Living, n.d.a).

Increased knowledge about remote work trends, mobility patterns and migration flows are important to draw up strategies for remote work and regional development. ÅSUB has studied and gathered information on the remote work situation in Åland. From a survey on the experiences of remote work during the pandemic, it was seen that most remote workers felt satisfied with the experience and would like to continue working remotely in some form in the future, with more flexibility in terms of when and where they work. However, most employers wanted their staff to work on site. The survey shows both increased interest and readiness for remote work in Åland (ÅSUB, 2022b).

There are initiatives to support remote work by both the Government of Åland, municipalities and the private sector. The Government of Åland strives to be an attractive workplace, where people in all municipalities can work. One example is the long-term effort to refine the government’s administration as a workplace. As part of this effort, employees who wish to do so, and have a job where it is possible, will be able to continue working remotely post-pandemic. Remote working creates new opportunities for government employees to work from rural and archipelago areas (Henriksson, 2021; Ålands Landskapsregering, 2021).

Företagsam Skärgård, an association formed by the six archipelago municipalities, provides support to new businesses and workers relocating to Åland. Företagsam Skärgård aims to strengthen the conditions to work in the archipelago, by, for example, promoting remote work opportunities. It highlights that digital opportunities have brought new ways of working and remote work has become a possibility for rural municipalities to attract more people and businesses. There are year-round connections to mainland Åland and mainland Finland, fast internet connections, advice and start-up support for entrepreneurs, and support investments for businesses (Företagsam Skärgård, 2019b; Interviewee 1). At present, a few remote workplaces are established, but there is an awareness of this growing need. The archipelago has good conditions to establish coworking spaces, as there are existing premises with fast broadband (Interviewee 1; ÅSUB, 2022b).

Associations such as Företagsam Skärgård have already developed their own projects linking remote work with rural attractiveness and development. Attempts to support remote work in the archipelago municipalities have been made in the form of projects, often with external funding (e.g. EU funds) and through cooperation and co-founding with the Government of Åland. It is through projects that activities and actions are implemented, and several projects include the promotion of remote work, even though the projects do not solely focus on this topic. One example is “The archipelago in my heart” (Skärgården i mitt hjärta), a project with the aim of promoting Åland, which ended in 2022. Part of the project was to attract more people to the archipelago, promoting Åland as attractive for tourists, new residents and returnees where remote work was one of the highlighted strategies. Other projects and campaigns have also been launched with the aim of increasing move-in to the municipalities and improving the attractiveness of the places (Interviewee 2).

Workcation implies working remotely during a vacation and is one major remote work trend. Opportunities to attract digital nomads and promote workcation as a regional development strategy existed before the pandemic. With Åland’s excellent digital infrastructure, remote work is a good way for visitors to extend their stay in Åland, combining the experience with work. Visit Åland promotes remote work in the archipelago and provides a list of accommodation suitable for remote work on their website (Visit Åland, n.d.). The archipelago municipalities have seen an increase in workcation, but mostly related to people who already had some kind of connection to the place. This includes people with relatives living in the area, or summer guests with second homes/cottages deciding to extend their vacation and work remotely. Therefore, holiday home owners, with an existing connection to the archipelago, are seen as the target group with the most potential regarding workcation (Interviewee 2).

Remote work has both advantages and disadvantages. If people move to Åland but keep their job and work remotely, it does not directly create jobs in Åland. In addition, it is still unclear whether people who kept their jobs but moved to Åland during the pandemic will continue to work remotely, or if they will move back to where they lived pre-pandemic. It is thus too early to see if remote work and in-migration are long-term trends or just short-term fluctuations. Nonetheless, more data on remote workers and trends are needed, especially in the archipelago. It is assumed that remote workers in the archipelago municipalities have existed for quite some time and have steadily increased in number over the past several years. However, how much remote work has increased is unclear, as there are no detailed data. This makes it more difficult to follow trends and make predictions. For example, there is currently no data on how many new houses are needed for people to move to the archipelago municipalities. It would be beneficial to collect data on remote workers for future development (Interviewee 1 and 2).

From one perspective, it may be perceived as unfair when professional groups do not have the option of working remotely. Some occupations require physical presence at work, such as fishery or production, whereas IT or administration are often place-independent making remote work possible. A large share of professional groups in Åland, and especially in the archipelago municipalities, is made up of occupations requiring physical presence (Bärkraft, 2020). This results in limited remote work possibilities. However, as a large share are also multi-skilled workers with several occupations, remote work can function as one channel for employment. Combining occupations that require physical presence with part time remote work can be a strategy for these people (Interviewee 1).

Due to their peripheral location and low populations, the archipelago municipalities need to make special efforts to maintain good living conditions for the resident population, where a certain volume of people is needed to run local services (Ålands Landskapsregering, 2019). Remote work that leads to an increase in the population could improve services in the archipelago municipalities (Interviewee 1). The Ålandic government intends to work together with the archipelago municipalities to create increased migration and more jobs. In addition, there is now a rapid development of remote services in both education and healthcare, which can create flexibility and better accessibility to services in the future (Bärkraft, 2020). Åland Living is already working today to increase interest in Åland as an attractive place to live. Developing and putting more resources into Åland Living in close cooperation with the business community and the labour market would be a step in the right direction (Bärkraft, 2022).

It is important to keep track of the rules that apply if you live in Åland and work remotely for a foreign employer. In addition to the rules related to remote work, issues related to tax legislation across borders were raised in connection to the pandemic and sudden increase in people working remotely for foreign employers (Sjöblom, 2022). Åland has a large share of second homes/holiday homes, and there was an influx of people from other countries during the pandemic, mostly Swedes, who went to Åland and worked remotely from their holiday homes. For those living in one country and working in another, it becomes problematic when work is suddenly carried out at home, remotely from the workplace. Determining which country’s taxation applies to remote work is an issue that was seen as a border barrier in the Nordic countries. If remote work is to become the new normal, this is an issue that needs to be further investigated and resolved (Harald, 2022; Ålands Landskapsregering, 2022). On Åland Living’s website, there are guides and information about the rules on taxation and social security benefits for remote work (Åland Living, n.d.b.).

Åland wants to grow, both in terms of more inhabitants, workplaces, businesses and annual overnight visitors. Remote work has the potential of both increasing the number of people relocating to Åland and making Ålanders want to stay there. Being able to work remotely with businesses outside Åland could be a way for people to develop their skills and progress in their career without having to move away from the area. In addition, remote work opportunities may also attract new people wanting to combine a stimulating job with a certain lifestyle. Åland has excellent conditions for remote work (in terms of broadband coverage) but has a lower proportion of remote work opportunities than other Nordic countries. This may be connected to the local labour market, which is mostly made up of sectors where remote work opportunities are limited. This is especially visible in the archipelago where many occupations require physical presence. Although, it is common in the archipelago for people to have multiple occupations and, as such, remote work can be one channel of employment. In addition, the archipelago municipalities face different challenges to those of more urban settlements, largely connected to depopulation and lack of services. Remote work has the potential to enable a living archipelago, creating an inflow of much-needed skills in key areas and maintaining public services. In Åland, and especially in the archipelago, the group with the largest potential for workcation are second home owners. It is an easy group to target as there is an existing link to the area.

Working out how to attract the skills needed and what can make Åland more attractive as a place to live and work are questions that should be further explored. There is a need to speed up coordination between the various elements that attract migration and new businesses. Some of the actions already in place can be further strengthened, but more are needed. More data and knowledge on migration numbers and trends are needed to better plan for the future. It is too early to say whether or not the people who relocated to Åland during the pandemic are there to stay long-term. Yet making all the settlements in Åland attractive could make it easier for people to stay and for new people to come to the area. This includes improving the accessibility and quality of services. Remote work can function as one channel and strategy of development, but it is not enough on its own for regional development. There are remote work opportunities in the archipelago, but actions are needed to strengthen the development. Therefore, continuing to develop remote work opportunities is a potential way to increase migration and regional development.