Forces affecting employment dynamics in Drenthe; Case study in a leading rural region in the Netherlands

In this report the focus is on employment dynamics in Drenthe 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 Drenthe increased by 24,500 jobs or with over 20% in the period 1984-1996. Nearly 40% of employment growth occurred in the community, social and personal services sector, 25% in the trade, restaurant and hotel sector, 14% in the financial services sector, 13% in the construction sector and 12% in the manufacturing sector. A substantial part of employment growth consists of part time jobs. Employment in the agricultural sector declined by over 2,000 jobs in this period. Employment development is the result of many interacting factors. As strengths have been identified the beautiful landscape, which attracts tourists, labourers, entrepreneurs and retirees, the location of the region near the city of Groningen, the strategies of policymakers to create favourable preconditions for firm settlement, like zones of economic activities, low land prices and investment subsidies. Weak points in the employment situation are the peripheral location of Drenthe relatively to main economic centres, the cautious and risk averting attitude of many entrepreneurs and the relatively thinness of the economic structure. Opportunities for further employment growth are the congestion in the Randstad, improvements in infrastructure like the doubling of the N37 and the development of tourism. Threats are competitiveness with low wage countries and changes in EU agricultural and structural policies