Forces affecting employment dynamics in Groningen; Case study in a lagging rural region in the Netherlands

Abstract

In this report the focus is on employment dynamics in Groningen since the beginning of the 1980s. This study is part of an EU wide research project on employment development in leading and lagging rural regions of the EU. Total employment in Groningen increased by 36,000 jobs or with one quarter in the period 1984-1995. This employment growth mainly consisted of part time jobs. Nearly 40% of employment growth occurred in the community, social and personal services sector, 30% in the financial services sector, 13% in the manufacturing sector and 12% in the trade, restaurant and hotel sector. Employment in the agricultural sector declined by over 700 jobs in this period. Employment development is the result of many interacting factors. As strengths have been identified the nice capital city of Groningen with its knowledge infrastructure, which attracts entrepreneurs, labourers and students, the education level of the labour force and the concentration of firms in a zone from the city of Groningen to Delfzijl. Weak points in the employment situation are the peripheral location of Groningen relatively to main economic centres, the presence of traditional industries and the less favoured area of East Groningen. Opportunities for further employment growth are the congestion in the Randstad, the realization of the Blue City and the abundant space for firm settlement near the energy plant in the Eems Port. Threats are competitiveness with low wage countries and changes in EU agricultural and structural policies