The Region of Jämtland Härjedalen is located on the west side of the country, bordering Norway, and is situated within Norrland. The region is made up of eight municipalities, which together span across an area of nearly 50,000 km² (i.e. 12% of the total area of Sweden) with a total population of approximately 132,000 inhabitants in 2022 (Regionfakta, 2023). The Region of Jämtland Härjedalen is located in Jämtland County, and thus the region and county are often used interchangeably with each other[5]. Jämtland Härjedalen has been experiencing a trend of positive migration flows in recent years, and increased remote work opportunities. This case study explores how the Region of Jämtland Härjedalen responds to and approaches the development of remote work.

Jämtland Härjedalen is known for its nature and has many nature-based activities and outdoor life opportunities. Lifestyle migration is something that characterises virtually all migration to the region. The region offers a lifestyle that has become more attractive in recent years, and together with the growing opportunity for remote work, there is a great interest in relocating there (Business Region MidSweden, 2023). It is a region with high multilocality, both regarding business and education, but especially due to tourism, with its several ski resorts (Jämtland Härjedalen Turism, 2022).

There is potential to link the region’s long-term development goals to remote work, such as spreading in-migration over all municipalities and attracting more workers with high competences and skills. Efforts from both public and private actors are being taken to promote remote work opportunities for regional development (Tillväxtanalys, 2022), and there is also a political ambition to develop remote work opportunities (Interviewee 1). Several regional strategies and plans have been put in place alongside this trend, and coworking operations have been established in the region. One example is the work hubs (arbetshubbar), which offer workplaces for people and companies who are working remotely (Region Jämtland Härjedalen, 2020).

The eight municipalities Berg, Bräcke, Härjedalen, Krokom, Ragunda, Strömsund, Åre and Östersund make up Jämtland Härjedalen (i.e. Jämtland County). The city of Östersund is the county’s capital city. Half of the population lives in the municipality of Östersund, the rest is dispersed in the other six municipalities with a large share in rural areas. The county is one of the most sparsely populated counties in Sweden and density levels vary greatly between the eight municipalities, ranging from 0.9 to 28.9 people per square kilometre (Region Jämtland Härjedalen, 2021a). Jämtland Härjedalen is a region where it is very popular to have a second home (holiday homes or cottages), both among Swedes and Norwegians as the region borders with Norway (Jämtland Härjedalen Turism, 2022). In 2019, there were around 32,000 second homes in the region (SCB, 2022).

The COVID-19 pandemic resulted in changes in migration flows. In Jämtland Härjedalen, a prior migration deficit turned into a migration surplus (Tillväxtverket, 2023a). 2020 saw the highest number of in-migration to the region from the rest of the country over the previous 20 years, with a net domestic migration of +264 people (Persson and Kemppainen, 2021). However, this population increase has not affected all municipalities equally, as the county has also been affected by the megatrend of urbanisation with migration to larger cities. It is the municipalities that have the highest population increase today that are also expected to account for the increase in population in 2030 (i.e. Östersund and Åre) (Kemppainen and Persson, 2021).

The local economy is dominated by small businesses, it has few large companies compared to other counties and the regional labour market is centred around Östersund city (Kemppainen and Persson, 2021). The unemployment rate of 4.8% in 2022 is among the lowest in the country (Tillväxtverket, 2023b). Important economic sectors are travel and tourism, services and green sectors. There are also some fairly new sectors that are important for the local economy and labour market. The IT sector grew by around 20% in 2019, with predicted further growth, and there are companies in the region that are at the forefront of e-health. Another growing employer is government authorities, with many offices in Östersund (Business Region MidSweden, 2021). Jämtland Härjedalen has a long history of tourism, where the travel and tourism sectors are of great importance for the economic development of the county (Jämtland Härjedalen Turism, 2022).

It is a low-density economy, characterised by low population density, a small local tax base and small labour force, high-cost pressures on the public sector, and markets that offer a limited supply of goods and services (Region Jämtland Härjedalen, 2020). The large distances create challenges regarding higher costs of, and limited access to, different services for the residents (Regionfakta, 2022).

A well-functioning digital infrastructure is a prerequisite for increased remote work. However, access to high-speed internet is not evenly distributed across the country (Tillväxtverket, 2023a). Jämtland county’s sparsity and the large proportion of the population outside urban areas make it difficult for broadband infrastructure to reach everyone (Region Jämtland Härjedalen, 2020 and Svenska Stadsnätsföreningen, 2023).

Jämtland Härjedalen regional management office saw already in 2015 that the phenomenon of remote work and coworking operations was an emerging trend, one which could be beneficial for regional development. The issue of a low supply of skills was a reason why remote work opportunities started to be developed, which is a problem the region has been dealing with for several years (Interviewee 1). Several of the regional development strategies and plans focus on the development of digitalisation and remote/hybrid work (Region Jämtland Härjedalen, 2021b). Region Jämtland Härjedalen, in collaboration with both municipalities, and private actors and businesses, is working to establish new coworking environments throughout the county. Much focus is on developing work hubs, as these are expected to facilitate migration and the establishment of new businesses, both of which are prioritised in the regional development strategy (Interviewee 1).

In 2021, the Region of Jämtland Härjedalen adopted a plan for the development of remote and hybrid work to support the establishment of regional work hubs (arbetshubbar) for people employed by the region. A plan for remote independent working methods was drawn up to create the conditions for new public collaboration hubs in places where they are currently lacking, where the aim was for the region to have a physical presence in all the region’s municipalities. The objective was to set up a strategy to partly develop abilities around remote work and then put the strategy into a system, to see if added value could be created through this way of working (Interviewee 1; Region Jämtland Härjedalen, 2021c).

In addition to the regional management office, the municipalities in the region can also develop their own strategies and plans for the development of remote work and work hubs. The municipality offices can be helpful in the establishment phase of creating coworking operations by, for example, providing financially support to private coworking initiatives wanting to establish themselves in the municipality. Such is the case for Gomorron, a coworking operation in Östersund offering coworking areas, networks and guidance on how to relocate to the area. Operations like these are seen by Östersund municipality as a springboard for business establishment. Further, the municipality can also have their own staff stationed in the coworking environment, getting closer to entrepreneurs and other actors relevant for local development (Tillväxtanalys, 2022).

Jämtland Härjedalen is a leading region in Sweden in supporting remote work, focusing on measures such as increasing the knowledge base of remote work trends and data, and offering guidance for someone wanting to relocate to the region (Tillväxtanalys, 2022). The region of Jämtland Härjedalen aims to increase knowledge on remote work and gather statistics about commuting patterns, recruitment needs and migration trends, etc., connected to hybrid/remote work in the region. This is to provide the conditions for implementation of hybrid or remote working methods and the establishment of regional work hubs. One initiative for this was the partner agreement with Remote Lab that was signed in autumn 2020 (Region Jämtland Härjedalen, 2021c). Remote Lab is a knowledge and development hub for distance-independent working life of the future. It was launched in 2020 by the coworking actor Gomorron Östersund, with the aim to stimulate collaboration, increase knowledge about remote work and provide management support (Remote Lab, 2020). Through cooperation with Remote Lab, the region aims to increase its ability to monitor trends and make informed decisions regarding the development of remote work in the region (Region of Jämtland Härjedalen, 2021c).

There are initiatives to stimulate residents outside the county, but with the many holiday homes in the county, there are also initiatives for people to move permanently to the area. The magazine and website “Take the step” (Ta steget), initiated by the Region of Jämtland Härjedalen, aim to do just that. The mission is to, through cooperation between the county’s municipalities and employers, make it easier for people who want to move to Jämtland Härjedalen. “Take the step” is part of the “An attractive region” (En attraktiv region) project. A move can raise many questions, but with the initiative, future residents can receive practical support on matters connected to moving to the county, individual contacts and finding a way into the local network (Ta steget, n.d.).

There are several initiatives and projects related to supporting remote work in Jämtland Härjedalen, most of them are different types of coworking spaces, such as office hotels and work hubs, and each has its own niche. Often, coworking operations are private initiatives and outside existing regional policy instruments. However, they still function as a regional policy resource, and are important tools for a region to attract and keep workers (Tillväxtanalys, 2023). Moreover, these hubs can be seen as innovation environments, and functioning as clusters where business community, public sector, academia and civil society can meet and collaborate (Interviewee 1). Coworking spaces create opportunities for social networking and introducing newcomers to the region. Coworking spaces can also contribute to local development in several ways. For example, coworking operations can be used as initial establishment points for businesses wanting to establish themselves in a new location. Further, coworking spaces in attractive, rural environments can be used as a component to attract and recruit sought-after skills and broaden the geographical recruitment base of the business (Tillväxtanalys, 2022).

Jämtland Härjedalen is Sweden’s densest coworking region, with the most coworking environments in Sweden per capita (Region of Jämtland Härjedalen, 2023). Coworking spaces have existed in the area since before the pandemic, however, several have been opened in different parts of Jämtland Härjedalen from 2021–2023, and more are under development (Interviewee 1). In Jämtland county alone there around 30 different co-working spaces intended for remote work (Region of Jämtland Härjedalen, 2023). They are often located around or in the main towns within the region. Establishments such as House Be, Mountain Hub (Fjällhuben), Gomorron Östersund, N1 and Peak Region Science Park, to mention a few, are all established in the region and designed to bring remote workers together and accommodate their needs (Business Region MidSweden, 2021).

Adequate digital infrastructure is a critical requirement for remote work to be made possible. Fast and reliable broadband is available in the larger urban areas. However, the more rural and sparsely populated areas in the region have a larger proportion without a fast and reliable internet connection (Svenska Stadsnätsföreningen, 2023). Therefore, the situation is not ideal to carry out remote work in all municipalities in the region. Without connectivity, remote work opportunities are limited.

Furthermore, the trend of increased immigration is not spread out evenly across the municipalities in the region. The municipalities with mountain resorts and a large number of holiday homes are able to attract people, a trend further expanded by the possibility of working remotely (Kemppainen and Persson, 2021). However, in municipalities where ski resorts or other attractions are not naturally present, there is nothing to say that digitalisation and remote work itself will make these places grow and people want to move there.

“It will be a tug-of-war between all cities and municipalities in Sweden to attract new residents. There may be the naïve belief that if we become digital and have tools to work remotely, then people will automatically choose to relocate to these rural areas.”
(Interviewee 1)
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Connected to the attractiveness of a municipality is the question of access to services. Culture, entertainment and remote work opportunities can make a municipality attractive to someone about to relocate. However, the basic requirements, such as health care, education and access to supplies, are other important deciding factors. As mentioned before, Jämtland Härjedalen has experienced challenges with providing access to services, due to the large distances between communities and sparsely populated areas. The region has had issues with recruiting some critical professions, such as doctors or teachers. If a municipality cannot get a doctor or teacher on site in certain sparsely populated areas, they could be recruited by offering them the opportunity of working remotely. The staff are not then obliged to relocate to the region. The lack of staff in critical professions can thus be solved digitally, with digital doctor appointments and online teaching. However, one aspect to consider is whether or not this is a desirable solution for the residents (Interviewee 1).

The current legislation will in many respects be challenged by coworking operations, especially the tax system. In a situation where an employee is employed by a company in one municipality, coworks part of the week in another municipality, has a holiday home in a third municipality where he/she works remotely some of the time, and has a permanent address in a fourth municipality, it is not so obvious where that employer should pay tax in the long run (Tillväxtanalys, 2022). This is also a downside to remote work as it can create a counterproductive effect, at worst. This issue is important, as regional development concerns, to a large extent, increasing the tax base, through the people who live and work in a region and pay taxes (Interviewee 1).

Increased knowledge on remote work is needed, such as statistics and data about the number of remote workers, their moving patterns, but also on the number of coworking operations. This would enable the regions and municipalities to create good strategies and policies connected to the future effort and development of remote work. It would also be beneficial for both municipalities and coworking operations to have better knowledge about each other’s needs and activities. Both share a common interest, that is, both want to attract more people and strengthen the local/regional entrepreneurial environments. For a long time now, public actors (i.e. the region or municipality) have played a critical role in supporting and streamlining the environments and bringing together different actors. Now, with coworking operations, new arenas for networking have been created, bringing together and supporting remote workers. Therefore, it is important to continue working with the development of coworking operations (Tillväxtanalys, 2023).

Adequate connectivity is a prerequisite for remote work. Therefore, fast and reliable broadband needs to be a higher priority in the places where it is currently lacking, these places also need support so they can invest in broadband establishment (Region Jämtland Härjedalen, 2020). The current legislation is not adapted to the flexibility that coworking operations need. An inquiry to examine the legal challenges faced by coworking operations would be beneficial so that policies can be put in place to support and promote the growth of the coworking sector and the further development of remote work (Tillväxtanalys, 2022).

Increased remote work opportunities can influence a region in different ways, either through people living in the region and working elsewhere, or vice versa. Both ways can have an impact on regional development, and each presents its own advantages and challenges. The Region of Jämtland Härjedalen has underlined remote work as an important factor for further regional development and has several strategies and initiatives in place to support remote work. One challenge to be investigated is if digitalisation and remote work can break the megatrend of urbanisation, and make people move permanently to more sparsely populated areas. It is not yet clear whether the trend of remote work is driving increased urbanisation, or if it can contribute to reduce urbanisation and a strengthened local community across the country.

In Jämtland Härjedalen, supportive actions for remote work often come from the public sector. The Region of Jämtland Härjedalen has established a structure on how to promote remote work opportunities, forms of cooperation with different coworking operations, and systems for knowledge and data gathering to better follow trends. However, the private sector has proved to play an important role in establishing coworking spaces as well. Developing remote work opportunities and coworking spaces are important ways to both create new clusters of people in a place and demonstrate that the region is committed to supporting new flexible working methods, thereby attracting more people to the region.

The positive development seen in the region as a whole with in-migration and remote work opportunities, is not true for all municipalities in the region. Allowing people to work remotely while living in a rural area can help with combating out-migration. However, remote work is not in itself enough to attract people and make them want to relocate to a region or municipality. It is becoming an important deciding factor and can enable such a decision, but factors such as access to services, a vibrant community, and surrounding nature and housing, all still need to be in place for a region to appear attractive, both for locals and new residents. Some parts of the region are unable to offer remote work opportunities due to, for example, inadequate digital infrastructure and an uneven spread of coworking spaces. Efforts are still needed to ensure regional development where all municipalities can take advantage of the opportunities remote work can bring.

[5] In this case study, the Region of Jämtland Härjedalen will be used when describing the work of the regional management office, and Jämtland Härjedalen or Jämtland County when describing the local context, situation, and for statistics. For example, statistics and data are found for the county rather than the region.