The Nordic rural regions face a labour shortage, as young people are moving away and local populations are decreasing or ageing into retirement (Heleniak & Sánchez-Gassen, 2020). This means that there are indeed jobs available in rural areas, especially with the ongoing transitions, although the perception that there is a lack of jobs in rural areas, seems to remain. Structural changes including digitalisation, automation and green transitions also impact local labour markets, as access to the right types of skills and competences becomes crucial for the local and regional economy (Lundgren et al., 2020). For example, skills gaps and mismatches may lead to businesses turning down market and development opportunities, or a lack of skilled labour may force changes to the local welfare sector (Lundgren et al., 2020).
Many young individuals feel “forced” out of the region and towards urban careers, or feel compelled to seek job opportunities elsewhere. The perception of the existence of job opportunities and self-realisation may play important roles here, as work is often viewed as a crucial avenue for self-development (Bæck U.-D. 2004). A recent study based on a survey of Norwegian young people indicates that those who express a willingness to move to rural areas generally do not anticipate rapid career advancement. Conversely, those with reservations about relocating to rural areas expect quicker career progression, yet also express concern about finding their “dream job”, utilising their skills, and enjoying a fulfilling social life (Nordtug, 2021).
Remote job opportunities or “field offices”, as recently introduced in Iceland, are one approach to addressing labour market issues in rural areas. These involve governmental agencies and authorities providing opportunities for people living outside capital areas, as well as creating hybrid workspaces to ensure a social work environment. Coupling this with early knowledge of the local labour market and spaces for nurturing entrepreneurship, i.e. helping young people to develop and create their own jobs, would allow for a more diversified labour market. With regard to remote work, it is important to consider underlying structural aspects, including taxation matters, so that value created locally stays in the community. If rural areas are to contend with urban labour markets, it is vital to develop knowledge of the relationship between local education opportunities and the local (functional) labour market, as well as entrepreneurial opportunities for young people. There should be space for young people to develop sustainable new solutions for the municipality and for local businesses.
Young people who are not in education, employment or training (NEETs) are a particularly vulnerable group in rural areas, and frequently experience social marginalisation (Karlsdóttir, Cuadrado, Gaini, Jungsberg, & Vestergård, 2019). In order to secure their future prospects, this group needs increased attention from policy-makers working across different social and economic sectors and governmental levels. Enabling this group to participate in the local labour market would improve the prospects of the regional and local area as a whole (Karlsdóttir, Cuadrado, Gaini, Jungsberg, & Vestergård, 2019). There are several initiatives in place to counteract the increased numbers of NEETs in rural areas. Finland leads the way in proactive approaches to engaging NEETs. Finnish municipalities are required to hire outreach youth workers who engage with young individuals who have disengaged from school or work, or are currently inactive. This approach has proved highly effective in assisting socially marginalised groups.
Recommendations:
Establish rural public offices and hybrid workspaces to enable rural youth to participate in hybrid working in their local area, while also reaping the social benefits of a regular workplace.
Provide rural grants to establish public offices for companies who move part of their business to rural areas. This will encourage companies to offer more remote and hybrid work opportunities.
Invest in makerspaces and innovation centres to provide rural start-ups and entrepreneurs with facilities and access to technology, equipment, and business courses. This will increase the number of businesses and make rural labour markets more dynamic.