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Skills Supply and Governance in the Bothnian Arc Cross-Border Region

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Skills Supply and Governance in the Bothnian Arc Cross-Border Region Skills supply and governance in the Bothnian Arc cross-border region By Alberto Giacometti & Alex Cuadrado NORDREGIO REPORT 2020:10 nordregio report 2020:10 1 Skills supply and governance in the Bothnian Arc cross-border region By Alberto Giacometti & Alex Cuadrado NORDREGIO REPORT 2020:10 Report prepared for the Nordic Thematic Group for Innovative and Resilient Regions 2017–2020, under the Nordic Council of Ministers. Skills supply and governance in the Bothnian Arc cross-border region Nordregio Report 2020:10 ISBN 978-91-87295-27-0 ISSN 1403-2503 DOI: http://doi.org/10.6027/R2020:10.1403-2503 © Nordregio 2020 Nordregio P.O. Box 1658 SE-111 86 Stockholm, Sweden [email protected] www.nordregio.org www.norden.org Analyses and text: Alberto Giacometti & Alex Cuadrado Layout: Vaida Ražaitytė Coverphoto: Ali Arif Soydaş / unsplash.com Nordregio is a leading Nordic and European research centre for regional development and planning, established by the Nordic Council of Ministers in 1997. We conduct solution-oriented and applied research, addressing current issues from both a research perspective and the viewpoint of policymakers and practitioners. Operating at the international, national, regional and local levels, Nordregio’s research covers a wide geographic scope, with an emphasis on the Nordic and Baltic Sea Regions, Europe and the Arctic. The Nordic co-operation Nordic co-operation is one of the world’s most extensive forms of regional collaboration, involving Denmark, Finland, Iceland, Norway, Sweden, and the Faroe Islands, Greenland, and Åland. Nordic co-operation has firm traditions in politics, the economy, and culture. It plays an important role in European and international collaboration, and aims at creating a strong Nordic community in a strong Europe. Nordic co-operation seeks to safeguard Nordic and regional interests and principles in the global community. Common Nordic values help the region solidify its position as one of the world’s most innovative and competitive. The Nordic Council of Ministers is a forum of co-operation between the Nordic governments. The Nordic Council of Ministers implements Nordic co-operation. The prime ministers have the overall responsibility. Its activities are co-ordinated by the Nordic ministers for co-operation, the Nordic Committee for co-operation and portfolio ministers. Founded in 1971. The Nordic Council is a forum for co-operation between the Nordic parliaments and governments. The Council consists of 87 parliamentarians from the Nordic countries. The Nordic Council takes policy initiative s and monitors Nordic co-operation. Founded in 1952. Stockholm, Sweden, 2020 Table of contents Foreword............................................................................................................................................................ 6 Executive Summary .................................................................................................................................. 7 1. Introduction ................................................................................................................................................ 9 2. Skills Background Literature ..................................................................................................... 10 2.1 What are skills? ........................................................................................................................................ 10 2.2 Why are skills a hot topic? ..................................................................................................................... 11 2.3 Mismatch ...................................................................................................................................................12 2.4 Skills development & governance ........................................................................................................13 2.5 Life-long learning ....................................................................................................................................14 2.6 Labout mobility (cross-border & beyond) .........................................................................................16 3. Methodology ............................................................................................................................................17 4. Case Study: Bothnian Arc Cross-Border Region ....................................................... 18 4.1 Status quo ................................................................................................................................................ 20 4.2 Mobility ...................................................................................................................................................... 27 4.3 Skills development .................................................................................................................................. 32 4.4 Skills governance .................................................................................................................................... 37 5. Discusion & conclusions ................................................................................................................. 43 References ...................................................................................................................................................... 46 Interview List: Field Study carried in October 2019 ............................................................................. 49 nordregio report 2020:10 5 Foreward Nordregio, on behalf of the Nordic Council of The study aims to find answers to the following Ministers Committee of the Civil Servants for questions: 1) What is the current situation regard- Regional Affairs, is the secretariat for the Nordic ing the supply and demand of skills in the Bothnian thematic group for innovative and resilient regions Arc region? 2) What are the different forms of mis- 2017-2020. During this program, the Nordic the- match between the skills supply and demand? and, matic group has focused on expanding knowledge 3) What potential does cross-border mobility have and identifying policy-relevant solutions to the in closing skills gaps in the region? challenges that Nordic regions face when it comes This report provides interesting insights into to resilience, smart specialisation, digitalisation, the developments concerning the who, when and and skills. In 2019-2020, Nordregio conducted this how of skills development in a changing global study on skills supply, skills demand and mobility landscape. With the rapid changes in technology in the Bothnian Arc area with the aim of providing and the labour markets structure, the role of life- some answers to the specific skills related chal- long learning is gaining significant importance. lenges in the area. This study has also shed some lights on how dis- The Bothnian Arc cross-border area is a collab- tance work and new forms of work can help tack- oration between municipalities across the state ling the significant lack of labour in areas such as border between Finland and Sweden. It extends the Bothnian Arc with dire demographic devel- from the Swedish city of Skellefteå to Kokkola in opments. Finally, the study also identifies an un- Finland, along the coastal territories forming a tapped potential for complementing skills needs horseshoe shape the surrounding Gulf of Both- across the Finnish-Swedish municipalities through nia. The labour and skills supply vary significantly increased labour market integration. within the Bothnian Arc area. The two middle-size cities of Oulu in Finland, and Luleå in Sweden are magnets for securing high levels of regional com- petence but generally the region suffers from ma- jor demographic challenges. The demand for skills varies significantly depending on the industrial Heikki Aalto composition of different municipalities. CEO of Bothnian Arc Association nordregio report 2020:10 6 Executive Summary This study investigates the state of play of skills market with new skills and fresh perspectives. In supply and demand in the Bothnian Arc cross-bor- this context, securing the availability of skills in a der region. Empirical evidence is gathered to shed region is the main insurance for its future social light on some of the reasons behind the present and economic sustainability. and future challenges in meeting the demand for This study revealed a number of interesting re- skills supply. The empirical evidence also pinpoints sults. The supply of skills depends on multiple fac- key types of mismatch between supply and de- tors, both from the supply and from the demand mand and in which areas. The research investi- side. Labour supply in general is closely related to gates the different roles of education providers, demographic trends. The Bothnian Arc region is ex- employers, and a range of other regional actors posed to three important demographic challeng- in skills development and governance. Finally, spe- es: population decline, ageing, and urbanisation. cific attention was put on analysing the potential While these trends affect major parts of the Nor- for cross-border labour mobility in closing some dic countries, they are particularly accentuated in of the skills gaps in the labour markets across the the northernmost regions. Even cities like Oulu and Finnish-Swedish border. Luleå have much more modest population growth This study builds on previous research carried compared to similar-size cities in southern Sweden
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