Introduction

The onset of the COVID-19 pandemic marked a transformative period for labour markets worldwide, causing an extensive and rapid adoption of flexible work arrangements, and profoundly altering conventional work-life dynamics. This widespread shift, precipitated by the necessity to move work away from centralised environments, challenged the idea of traditional workplaces and changed people’s spatial relationships between home and work. As a result, it led to a rethinking of how work is organised, with far-reaching implications for the future of labour policies and the structure of workplaces (Vyas, 2022). The fact that so many workers were forced to change their working habits because of the pandemic, and that they had to perform their tasks from home, triggered what seems to have become a long-term shift in working culture (Müller et al, 2023; Randall et al, 2022; Dahik et al., 2020; OECD, 2021; Sostero et al., 2020).

During the pandemic, online tools and processes were quickly developed, adopted and refined to support online collaboration. In its aftermath, employees of both businesses and public institutions alike have seized the opportunity for a better balance between their work and private life by continuing to work, at least partially, from home. These evolving work models have substantially changed traditional employer–employee relationships, introducing a newfound emphasis on flexibility in work schedules and locations. The distinction between working hours and personal time, which was once clear-cut, has become blurred and redefined work-life balance. Moreover, this evolution of the workplace has led to a re-evaluation of people’s attachment to their jobs and offices, reshaping their professional identities and everyday experiences. Workplaces have therefore continued to develop remote working policies, often in an attempt to better facilitate employee well-being while also minimising overhead costs. As a result, remote working, or some form of hybrid working, has become the new norm in some the sectors.

In the context of rural development, this shift shows indications of it having a significant impact on such areas and requires adaptations in policy. The rise in remote work opportunities completely changes urban-rural migration patterns, as individuals and families reassess their living and working environments in light of greater work flexibility. This phenomenon may stimulate the revival of rural areas and potentially attract a demographic that had previously gravitated towards urban centres for professional endeavours.

Regional studies examining the repercussions of remote work offer insights that are pivotal for understanding its broader implications. Research conducted by Region Stockholm reported that one-third of individuals who relocated out of Stockholm County cited remote work as a factor influencing their decision. Notably, this demographic was disproportionately composed of self-employed individuals and those possessing higher qualifications. People with the flexibility to work remotely for half or more than half of their time often maintained their employment within Stockholm County after relocation. The primary motives driving these migration choices were identified as housing affordability and access to natural and outdoor spaces (Region Stockholm, 2022; Andersson and Wolf, 2022).

In Denmark, regular remote work is a reality for 35% of the workforce, with it now being the norm for people to work from home one day a week. This percentage increases to 44% within the office-bound job sector, and to 61% when considering digital- or knowledge-intensive fields (HBS Economics, 2023.. While remote work is not the only impetus, longer commuting distances are observed among professionals who can work remotely, as opposed to those in roles requiring their physical presence. The trend stands out most significantly in urban settings Across the border in Norway, remote work is embraced by 44% of the workforce, yet the bulk of this cohort works remotely less than half of the time. Office employees are predominantly telecommuting, with remote work being mostly adopted by people aged 40–49 years (Statistics Norway, 2023).

In Iceland, there has been a rise in the adoption of remote work post-pandemic, with 47% of its workforce engaging in some form of remote work as of 2023. Before the health crisis, this figure was slightly above 30%, with it approaching 50% at the peak of the pandemic. A notable shift is observed from 2018 when 69% of the workforce reported never working remotely, compared to around 50% in 2023. This shows a clear shift towards hybrid work arrangements in the aftermath of the pandemic (Hagstofa Íslands, 2024). Finland presents an interesting case where approximately 40% of workers were engaged in remote work in 2022 while the the Finnish workforce has the highest proportion of individuals who work remotely for more than half of their working hours, recording a rate of 24% (Statistics Finland, 2023).

These studies collectively show a pronounced shift towards hybrid working models across the Nordic region, which is influenced by the flexibility offered by advanced telecommunication technologies and changes in work culture. The studies somewhat point to an emerging dynamic where the choice to take up remote work could reshape residential and migratory trends.

A strategic response in rural development policy should take these possible changes into consideration. Investment in digital infrastructure becomes pivotal in supporting widespread, reliable access to remote work capabilities. As workers have increased autonomy over where they can be physically based, rural areas may benefit from economic diversification, property market stabilisation, and improvements to local services and businesses. However, these positive outcomes depend on carefully curated rural development policies that are designed to maximise the advantages of flexible work arrangements and mitigate potential drawbacks, such as increased pressure on local infrastructure or social services. Furthermore, rural development initiatives may now need to incorporate provisions for co-working spaces, community networking events and services that cater to the needs of remote workers.

In framing policy for the post-pandemic work era, it becomes imperative for authorities and policymakers to tailor rural development strategies that capitalise on the transition towards flexible work arrangements while fostering sustainable growth in rural communities.

Nordregio’s research project Remote Work: Effects on Nordic people, places and planning 2021–2024 wanted to understand the implications of increased remote work for Nordic people, places and planning. Its aims were to understand the spatial changes and new trends of remote working and multi-locality, and how planners and policy makers are utilising these new potentials to shape urban and regional development. The first phase of this project produced a literature review and statistical analysis which were presented in two reports: Remote work: Effects on Nordic people, places and planning (Randall et al., 2022a) and Local and regional experiences of remote work and multilocality (Randall et al., 2022b).

This publication provides further insight into the emerging trends in rural and remote regions and municipalities in the Nordic countries. It is based on previous research findings and statistical data analyses, and interviews with stakeholders, as well as national, regional and local policies. A total of six case studies were conducted for this report to shed light on the effects that increased and more normalised remote work culture may have on regional development.

The project is funded by the Nordic Council of Ministers through a joint effort between the three thematic groups established under the Nordic Co-operation Programme for Regional Development and Planning 2021–2024. The research activities conducted for this report were funded by the thematic groups Green and Inclusive Rural Development, and Green, Innovative and Resilient Regions.

The results of this report are based on and related to the findings of previous studies in the Remote work project. A short summary of these studies is given below. A comprehensive summary of the project, as well as all published reports and policy briefs, can be found at project website.[1]

In 2022, the project published two reports: Remote work: Effects on Nordic people, places and planning (Randall et al., 2022a) and Local and regional experiences of remote work and multilocality (Randall et al., 2022b). The findings support the clear potential for Nordic cooperation in developing and planning strategies to embrace remote work opportunities for Nordic municipalities and address the challenges associated with temporary and permanent population changes.

The first report, Remote work: Effects on Nordic people, places and planning, gives an overview of remote work patterns in the Nordic counties at the time of publication (May 2022). Prior to the pandemic, the Nordic Region was already unique in terms of its remote work patterns. From 2002 to 2019, more people worked from home in the Nordic countries than in any other part of Europe. As discussed in the report, there are a few possible explanations for this trend. They include the flexible work-life balance in the Nordic countries, the high levels of digitalisation and digital competencies among the general population, and the large share of workers in sectors where distance work is more commonly found, such as knowledge- and IT-intensive sectors. Furthermore, the high levels of trust reported in the Nordic countries play an important role in making remote work possible.

The second report Local and regional experiences of remote work and multilocality makes a statistical analysis of migration and multilocality in two case studies conducted in Denmark and Finland. It also presents the results of a survey targeting the regional and municipal actors. The first case study on migration patterns out of Copenhagen, Denmark, found no significant change in migration distance pre- and post-pandemic. Both before and after the pandemic, more than half of the migrants moved less than 25 km from Copenhagen, and only 20% moved to a municipality further than 100 km away. The study found no notable differences between genders. The second case study investigated whether people spent more time in a region with a larger number of second homes during the COVID-19 pandemic. Google Mobility Data was used to investigate weekly and seasonal changes to the essential activity categories “Grocery & Pharmacy” and “Retail & Recreation” in the Etelä-Savo region in Finland. The study indicated that these activities were indeed affected by the pandemic.

Moreover, one-third of the respondents in the aforementioned survey considered increased opportunities for remote work to be an important factor for both permanent and temporary population developments in their region or municipality, and 46% considered it one of many factors.

The policy brief Strengthening Nordic cooperation on remote work and multilocality (Ormstrup Vestergård, 2022) summarises the findings of the first two reports and can be found here.[2]

In addition to the research above, a new Nordic urban-rural typology has been developed. This territorial typology is a tool that can be used to analyze settlement patterns and trends as well as other phenomena in different areas, ranging from the sparsest rural areas to the densest urban areas across the Nordic countries. This territorial typology is free to use and can be accessed here.[3]

[1] https://nordregio.org/research/remote-work-and-multilocality-post-covid-19/

[2] https://nordregio.org/publications/strengthening-nordic-cooperation-on-remote-work-and-multilocality/

[3] https://nordictypology.ubihub.io/

The rapid adoption of remote work has caused significant shifts in the labour dynamics of the Nordic regions, creating a potential impact on regional development and sustainability. The research framework and methodological approach designed to examine these shifts, which provide crucial insights into the evolving world of work post-pandemic, are based on previous findings as well as on six regional and municipal cases studies that were conducted specifically for the report. An additional cross-border case was also selected. The six case studies therefore provide information from both a municipal and regional level, and from different places on the urban-rural scale.

The Remote work and multilocality post-pandemic had three main aims. The overall aims of the project were to examine the potential of increased remote working practices for different regions and to investigate the Nordic municipalities’ and regions’ responses to greater opportunities of remote work. Finally, it also aimed to analyse the strategies employed by policymakers and planners to navigate the challenges, capitalise on openings and mitigate the uncertainties that the remote work evolution brings in the post-pandemic context. The results presented in this publication will primarily support the last two objectives, which focus on understanding and exploring the capabilities of remote working and multilocality across diverse regions.

The earlier phases of the project were navigated by two key assumptions. First, that remote working would become a long-term arrangement for a substantial segment of the Nordic workforce. Second, that the rise in remote working would reshape mobility and migration patterns, potentially increasing less densely populated areas. The research also aims to reflect on how remote work contributes to sustainability and resilience. More specifically, how remote work can help create sustainable regional development socially, environmentally and economically, and how it can help create more resilient rural regions and municipalities in the Nordic region.

Drawing from this, our formulated research question is: How can remote work contribute to resilient municipalities and regions?

The case studies will collectively address this question as well as the relationship between mobility, migration and multilocality in the possible transformation of Nordic local communities.

The methodological construct of this study adopted a multi-case approach based on the maximum case variation sampling method defined by Shakir (2002) as “cases, despite having diverse variations, exhibit important common patterns that cut across variations” (Shakir 2002). This selection method allows us to better answer our research question and the aims of the project, that is, how different regions and municipalities approach and work with the potential related to remote work. The cases were selected to exhibit a common theme – active engagement with remote work potential – while presenting substantial diversity, notably in administrative structures (local, municipal, regional, macro-regional and self-governing territory) and response focuses (e.g. establishing co-working spaces, focusing on decentralisation of state-level jobs, increasing second home usage and promoting remote work in relation to ‘workcations’). The case studies explored in this project aim to portray how remote work opportunities can look very different across the Nordic region.

The selection criteria for the cases included geographical location, population density and population development in previous activities. To identify these cases, Nordregio’s New urban-rural typology of Nordic countries was utilised (Stjernberg, Vasilevskaya and Penje, 2023). The cases were classified as either ”rural areas close to urban areas” or ”sparsely populated rural areas”. They were selected from a list of ideal case studies based on the previously mentioned criteria and following advice from the reference group members of the project. This expert group consists of the members of Nordregio’s thematic group for Green and Inclusive Rural Development and members of the thematic group for Green, Innovative and Resilient Regions.

The case studies included the municipalities of Keuruu in Finland, Stykkishólmur in Iceland and Orkland in Norway. The autonomous region of Åland Islands was included as a regional case, as well as the region of Jämtland Härjedalen in Sweden. The Danish island of Bornholm was then included as a cross-border case. The different cases sum up responses to the fast increase in remote work, illustrating various rural and regional development policies in connection to remote work opportunities in the Nordic region.

The principal method employed for the case studies embraced qualitative dimensions through interviews and field visits. These approaches were chosen to get insights into local situations, and the potentials and challenges of the accelerated remote working trend experienced by practitioners during and after the pandemic. The different actions that were identified in the first report from the project “Nordic Knowledge Overview” as responses to the accelerated trend of remote work are covered by these cases to show that remote work has the transformative potential of contributing towards the debate on regional and rural resilience and sustainability.

A total of 25 expert interviews were conducted with elected officials, practitioners and planners within local and regional government, business and workers’ associations, operators of co-working spaces, as well as individuals working specially with skills and recruitment. The interviews were designed to collect comprehensive data and gather knowledge from policymakers, planners and community leaders about the interrelation between remote work and regional development policies, with a specific emphasis on social sustainability and quality of life in rural areas. The interviews and field visits took place between June and October 2023.

Nordregio’s researchers also conducted a policy and document review to compliment and prepare for the field visits. The initial data were collected between October 2022 and May 2023. Since the topic of remote work is continually unfolding, the researchers continuously reviewed additional policy reports, academic papers and media articles during the research activities. Combined, this data gathering was performed and then analysed to see whether public sectors and businesses are responding to and planning for a more sustainable rural and regional development in relation to remote work. And, if so, in what way. This included an investigation of municipal strategies to see if the resources allocated to facilitate remote work and the actions taken either encourage or utilise remote work opportunities. The aims were to explore the strategic opportunities for regions and municipalities to increase their permanent resident base or enhance the number of non-resident populations, such as second-home users and tourists, by offering remote work opportunities. Challenges encountered during the development were also highlighted to understand how the new initiatives, strategies or planning tools that have emerged in response to shifts in remote work trends have played out in practice.

The initial phase of the study indicated that the most significant demographic shifts during the COVID-19 pandemic were seen in metropolitan regions, with a notable trend of individuals relocating from urban centres to suburban areas. At the same time, some of the more rural or isolated regions, which had previously been experiencing a decline in population, saw these declines stabilise or even slightly reverse (Lindall et al, 2022a). In light of all these observations, this research concentrated on six more rural and less densely populated areas to explore the role of remote work in sustaining and potentially growing their populations. A parallel study focusing on more urban contexts has been published simultaneously.^[4] In the next step a joint analysis will be the foundation of a common report.

After this introduction, the six case studies are presented in separate chapters. Each case is introduced, framing the ongoing and previous work with remote work. Main challenges and opportunities are highlighted with a short discussion and key take aways. The report concludes with a discussion on the results of the study and main conclusions.

[4] https://pub.nordregio.org/r-2024-5-remote-work-in-smaller-towns/