Global transformations, from demographic shifts, changing patterns of trade, technological advancements and climate change often have distinct impacts in different regions. Governments are adopting place-based policies to deliver better opportunities for people and businesses, while boosting regional competitiveness and productivity. This 2024 edition of Regions and Cities at a Glance provides comparative evidence to help guide these policy responses, with new insights on the local impact of global trends and policies.
The report finds that the effects of technological change vary significantly across regions. In Europe, 9% of jobs in rural areas are at high risk of automation compared to 4% in cities. However, digitalisation can also bring new opportunities and better access to public services in rural areas. The gap in internet speeds between rural and urban areas has decreased by 11 percentage points on average since 2019. However, broadband download speeds remain on average 25% faster in cities than in rural areas located in the same country. Continuing to expand access to digital connectivity will be essential to ensure residents of rural areas have the opportunity to fully participate in and benefit from the digital transformation.
Labour and skill shortages remain a pressing challenge, particularly in non-metropolitan regions where the workforce is shrinking due to ageing populations and outward migration. Upskilling workers and increasing the participation of underrepresented groups in regional labour markets will be key to meet local labour demands, as well as to improve the competitiveness and attractiveness of regions, which is currently uneven – in 2023, across 34 OECD member countries, half of all greenfield foreign direct investment into the OECD went to just 34 out of 357 large regions.
Housing affordability could further exacerbate skill shortages in regions where housing supply does not keep pace with economic growth. This edition finds that in large urban areas, housing prices are 68% higher than in small urban areas. Addressing overly restrictive zoning policies, and enhancing active and public transportation options, would enable densification and lower carbon emissions. Better access to essential services and jobs in suburban areas would also enhance liveability and the sustainability of transport networks.
More broadly, the report emphasises the role of place-based solutions for accelerating climate action. Sub- national governments have an integral role to play in implementing policies on electrification, green innovation, sustainable land use, and ultimately enabling strong, sustainable growth.
Mathias Cormann,
OECD Secretary-General