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Ageing in Nordic Local Labour Markets

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The objective of the series is to develop a practical policy lens for building resilience in local labour markets for local partners, relevant stakeholders, researchers, practitioners and academics. The webinars will enable serious discussion on the concept of ‘local economic resilience’ in an informal setting that facilitates interaction and questions. The format will feature presentations from policy experts and a roundtable discussion with the audience.

Published in: Economy & Finance
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Ageing in Nordic Local Labour Markets

  1. 1. UEF // University of Eastern Finland Petri Kahila, Research Director Spatia Centre for Regional Research petri.kahila@uef.fi OECD LEED Webinar Series Webinar 3 – Adapting to ageing and shrinking local areas 19 January 2016 Ageing in Nordic Local Labour Markets
  2. 2. UEF // University of Eastern Finland Main Demographic & Labour market Trends in the Nordic Countries •Concentration of people to urban areas has led to regional imbalances •Immobility or decrease of the workforce •Gender imbalance •Strongly growing international migration •Ageing 2
  3. 3. UEF // University of Eastern Finland State in the Nordic Countries (1) •Natural change and net migration reflect the total population change •Total population change varies a lot in Nordic Countries •Especially the background of municipality •Negative demographic development is evident in rural areas 3
  4. 4. UEF // University of Eastern Finland State in the Nordic Countries (2) •Share of people aged 55-64 •Average ratio was 12.5% in 2013 •In Nordic regions this age group is larger than in Europe •Result is that people reaching retirement will grow significantly •At municipal level values range from 6% to 26% in Finland 4
  5. 5. UEF // University of Eastern Finland State in the Nordic Countries (3) •Norway is clearly standing alone with low rates •Sweden and Finalnd are descibed by high unemployment rates outside urban areas •Some city regions are nowadays also facing high unemployment rates 5
  6. 6. UEF // University of Eastern Finland Mobilising the Labour Force •Decline in the working age share of the population is reacted by mitigation efforts •Pension reforms are primary instrument to mobilise labour force •On the other hand, youth and now also immigrants are important target groups •These instruments and policies cover normally mainly macro-level approaches 6
  7. 7. UEF // University of Eastern Finland Opportunities and Challenges in Regions •Cities form one extreme and rural/sparsely populated areas the other extreme 7 Cities  Gentrification processes  Segmented housing and labour markets Rural/sparsely populated areas  Poor employment possibilities  Depopulation and ageing  Poor access to services •However, there are common challenges across the territorial ‘urban’ and ‘rural’
  8. 8. UEF // University of Eastern Finland Pursuing Regional/Local Approaches •Macro-level policies prevail in both labour market and demography policy making •There is a need to underline aspects of regional approaches to ageing •Current governance approaches are not capable to tackle the right problems •Geography of ageing is complex issue 8
  9. 9. UEF // University of Eastern Finland ESF Project: Mentoring for Prosperous Workforce •Intention is to increase employees’ motivation to support the work community renewal •How to apply employees’ know-how to increase the competitiveness •Key issue is to recognise employees’ capabilities as well as deficiencies in the labour market •Competitiveness can be advanced, if entire workforce can be utilised 9
  10. 10. UEF // University of Eastern Finland Recent/prevailing policies •Population change may lead to positive as well as negative economic development •Improving the matching of labour demand and supply is central to national policies •Finland is reforming health care and social welfare provision as well as labour market policy •Reform might lead to more regionally targeted policies and incentives 10
  11. 11. Questions & Comments Petri Kahila, Research Director

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