Strengthening rural attractiveness through talent: insights from the OECD

For rural communities, attracting talent is not a standalone objective but a cross-cutting strategy. Coordination between national and subnational governments can enhance the effectiveness of policies aimed at developing green talent and strengthening rural economies.  

At the same time, local actors – often overlooked in top-down policy frameworks – play a crucial role in ensuring that national strategies translate into meaningful change on the ground. By aligning investments in connectivity, skills, housing, sustainability and community well-being, rural regions can position themselves as resilient, competitive and attractive places to live and work in a rapidly changing world. 

The importance of attractiveness  

Regional attractiveness has become a defining factor in economic development. In a context of global labour shortages, demographic change and climate pressures, regions are competing not only for investment and visitors, but increasingly for workers. The OECD Regional Attractiveness framework highlights that the ability to attract and retain talent is a key determinant of regional competitiveness, resilience and long-term prosperity. 

Across OECD countries, labour mobility is low: only around 1-3% of the population changes region each year. Within regions, the competition for talent is uneven. Rural communities often struggle to attract and retain residents and skilled workers. The 2025 OECD report Reinforcing Rural Resilience notes that more than two out of five remote rural regions in the OECD are already experiencing declining and ageing populations.  

What makes rural areas attractive places to live and work depends on a range of factors. These include the quality and accessibility of services such as schools and healthcare, reliable digital infrastructure, environmental and green amenities, opportunities to start and grow businesses, lower housing costs and cost of living, as well as strong social capital and community leadership.  

Digital divides and other challenges for rural areas 

However, many rural areas face structural disadvantages. For instance, OECD data show that digital divides remain significant: on average, user-experienced broadband download speeds are 13% faster than the national average in cities, while in rural areas they are 22% slower. Rural regions also tend to have more limited access to higher education, employment opportunities, healthcare and transport. These gaps accelerate loss of talent and contribute to labour shortages and skills mismatches, making it harder for rural communities to compete for the people they need most. 

Young people are particularly affected by these dynamics. As the future of rural communities, their ability to access education, employment opportunities and professional networks locally is critical. However, many struggle to find pathways that support their ambitions. Ensuring that their perspectives are incorporated into rural development policies is therefore essential to making rural areas attractive places to grow up and plan their futures. 

Megatrends such as climate change and digitalisation are transforming rural economies and landscapes, bringing new pressures and opportunities. Rural areas host significant natural resources and play an important role in energy production and the transition toward net-zero greenhouse gas emissions. At the same time, coastal communities face erosion and extreme weather events, agricultural seasons are shifting, and energy systems are transforming. In addition to new economic opportunities, these changes will alter labour demand across sectors including energy, construction, agriculture and transport. 

The need for green talent and other skilled workers 

The ability to attract talent is crucial to leverage any new opportunities that flow from the green transition. Skilled individuals drive productivity, innovation, entrepreneurship and service provision. In rural areas, attracting and retaining talent is essential not only for economic diversification but also for sustaining services.  

The OECD Principles on Rural Policy encourage governments to develop strategies that connect rural populations with education, training and skills-upgrading opportunities, recognising that the costs of inaction fall disproportionately on communities least able to absorb them.  

Without targeted skills policies, the green transition risks widening territorial inequalities. Therefore, attracting and developing ‘green talent’, workers with skills in renewable energy, sustainable agriculture, forestry, environmental management and circular economy practices should be a priority.   

Evidence from the recent OECD Rural Review of Ireland illustrates the scale of the challenge. The report identified a dynamic Irish rural labour market with growing opportunities linked to the green transition, alongside increasing skills mismatches, particularly in rural areas. Ireland is not alone; similar patterns are likely to emerge across many OECD countries. 

Policy actions for enhancing rural attractiveness 

OECD analysis suggests that strengthening rural attractiveness requires a comprehensive, place-based approach. Several policy actions can support this objective. 

First, it requires inclusive and locally driven governance. Across OECD countries, women’s labour force participation is about 10 percentage points below men’s (81% vs 71% on average), which reflects structural and social barriers rather than lower skills. Targeted gender‑sensitive initiatives and civic engagement should be part of the approach to activate this ‘missing’ talent in rural regions. Bottom-up rural development strategies are particularly effective, as they place communities at the centre of economic development planning and service delivery. By enabling the identification of local needs and solutions, these approaches mobilise stakeholders and strengthen local ownership of development strategies. 

Second, expanding access to high-quality digital infrastructure and co-working spaces can enable remote work and attract new residents. Portugal’s Emprego Interior Mais programme, for example, provides financial incentives for workers to relocate to less populated inland regions, supporting population retention in rural areas. 

Third, policies can encourage return migration. Return migrants often bring skills, capital and international networks that stimulate local development. In Spain, the region of Asturias has introduced the ‘Plan RetornAs’ initiative to support the return and reintegration of its diaspora through financial support and tailored assistance measures, including in less populated areas.  

Fourth, strengthening rural skills intelligence systems can help anticipate labour market needs and target interventions more effectively. For instance, the Autonomous Province of Trento (Italy) has developed an integrated monitoring system combining national labour force surveys, local business data and real-time workforce tracking to identify skills shortages and training needs. 

Finally, revitalising rural town centres enhances amenities, cultural life and leisure opportunities, making rural areas more appealing places to live and work. They can also function as hubs for economic and social activity, attracting residents, entrepreneurs and visitors. Effective revitalisation initiatives typically address local priorities, such as infrastructure, environmental stewardship, housing, transport, public safety and historic preservation, through collaborative processes that engage local communities.  

However, greater attractiveness must be managed carefully. In some destinations, rapid and unplanned tourism growth has placed pressure on infrastructure, housing and natural resources, undermining environmental quality and community well-being. 

Authors: Betty-Ann Bryce and Maya Camacho, OECD Centre for Entrepreneurship, SMEs, Regions and Cities