Dive Brief:
- For years, experts believed that where there were jobs, people were likely to follow. But in more recent times, knowledge workers and creatives have the ability to go where they want to to create their own livelihoods. A team of economists, headed up by Stein Østbye of the Arctic University of Norway sheds new light on the age-old question of "What comes first, jobs or people?"
- The study examined 250 economic regions in Finland, Norway, and Sweden. Researchers evaluated how job density influenced population growth and added more jobs. The results of the survey were that for the most part, people follow jobs based on economic factors. However, for the highest paid professionals and creatives, jobs follow people.
- Both jobs and people are drawn to regions with natural and cultural amenities. However, researchers pointed out that the highest concentration of jobs and people are confined to urban areas where expenses are the highest.
Dive Insight:
The study above reflects what we've known all along — companies are attracted to areas that have interesting cultures, natural beauty and other positive factors. That's one reason why so many millennials continue to be drawn to cities to work, and why many companies have shifted their offices from the suburbs into city proper. But the effect goes both ways. Millennials continue to pour into cities where proven opportunities exist.
One thing that the study did not address is the growing number of people who choose to be part of the new gig economy. How are they impacted by the increasing cost of living in cities where there are multiple opportunities to work on contract or freelance projects, but little overall financial security?
And while the gig economy continues to expand, so does the ability to telework, making some of the necessity of moving for a job more obsolete. Not all jobs can transform easily into distance work. But the long term effects of such opportunities on cities has yet to be seen.