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Shift to knowledge

In all the six areas, a shift is now taking place in the direc-tion of more knowledge -intensive activities, demanding labour with different skills and generally higher qualifications than before. The approaches adopted to meet these challenges do however differ.

All of the study regions have been exposed to economic restructuring in the last 10-15 years. Historically, these regions' economies were mainly based on primary sector products and – to a varying extent - manufacturing activities related to the processing of the local agriculture, fish, and mineral endowment. These sectors are now undergoing significant restructuring – with many closures and jobs being lost.

The economic and unemployment effects of this manifest themselves rather differently in each of the six areas. In Åland and Gotland the restructuring processes seem to be particularly rapid and systematic. In fact, the growth in new jobs within the service sectors in the two island communities has more than compensated for declining levels of employment in the primary and manufacturing sectors. Two sectors in particular, namely, construction and finance, and real estate and business services, are booming in Åland and Gotland.

On the other hand, the total labour requirements for these growing sectors are not the same as for those in decline. This means that those losing their jobs in the declining sectors often find it difficult to find employment in the new growth sectors.

In Kainuu, Ulstein, and Bornholm, growth within the service sector has not been sufficient to compensate for the rapid decline in the primary and manufacturing sectors.

Focusing on unemployment, only Kainuu with 18% and Bornholm with 11% unemployed, seem to have more than marginal unemployment levels. The level of unemployment in the other areas is only 2-5%.

Despite Kainuu's problematic situation, this area has shown a significant decrease in unemployment, with the number of jobs remaining relatively static in recent years.