Digitalization and remote work in peripheral labour markets in the Nordic region

Abstract

This article explores the impact of technological transformation as one of the global megatrends in modern times. We focus on how new technologies, especially digitalization, have made it possible for people in peripheral places to work remotely. The focus is on the case municipalities in Iceland, especially Húsavík in in Norðurþing in northern Iceland, but also in a comparative context with remote municipalities in Norway, Sweden, and Åland. The empirical data used is from the Nordic project SUNREM (Sustainable Nordic Remote Labour Markets), which has been studying the impacts of megatrends on the sustainability of remote labour markets in four Nordic countries. Data is collected from in-depth interviews with stakeholders, policymakers, and ordinary citizens in seven selected cases in the four countries. The key research questions dealt with here are: What is the situation of remote work in selected cases in Nordic sparsely populated areas? What preconditions are needed for remote digital working? Has remote work made the labour market more sustainable? The main conclusions are that remote working exists in all of the Nordic cases investigated. The town of Húsavík in the municipality of Norðurþing in North Iceland, stands out with its well-developed remote work centres. There are clear signs that facilities where people can work and meet other remote workers are important. This enables broader recruitment into the labour market, since for example spouses can use this option, enabling them to move to more remote places. Remote work from people's homes has some disadvantages, as pointed out by various researchers, and therefore infrastructure for remote working contributes to making labour markets in the periphery more sustainable.