Employment of people living in rural and coastal communities

The debate will be led by Virginia Crosbie MP.

Employment and inactivity in rural and coastal areas

Employment rates in constituencies which are predominantly rural and inland were highest in October 2022 to September 2023, at 78.2%. Rates other types of constituencies were around the same.

Source: ONS, Annual Population Survey October 2022 to September 2023, via Nomis; urban/rural and inland/coastal breakdown based on Library calculations using data from ONS, National Records of Scotland, Scottish Government, Defra, and Northern Ireland Statistics and Research Agency.

Economic inactivity (people not in work and not looking for work) was highest in constituencies which are predominantly rural and coastal (21.9%) in October 2022 to September 2023. Rural inland constituencies had the lowest economic inactivity rate (19.6%).

Census 2021 data shows that economic inactivity due to long-term sickness was also highest in constituencies which are predominantly coastal. 6.1% of people aged 16-64 in constituencies in England and Wales that are predominantly coastal and urban were inactive due to long-term sickness in March 2021, as were 5.1% in constituencies that are predominantly coastal and rural. This compared to 3.8% in rural and inland constituencies, and 4.6% in urban and inland constituencies.

Businesses in rural and coastal areas

Around two-thirds of businesses in the UK (64%) are in constituencies which are both predominantly urban and inland. A further 15% are in inland rural constituencies, 13% in predominantly urban coastal constituencies, and 8% in constituencies which are both predominantly rural and coastal. However, when adjusted for population, there are slightly more businesses per person in predominantly rural constituencies than in urban ones.

Rural and coastal constituencies also tend to have different types of businesses to those elsewhere. Professional, scientific and technical businesses make up about 14% of all businesses in the UK, but slightly less than 10% of businesses in predominantly rural and coastal constituencies. Almost 70% of all professional, scientific and technical businesses are located in inland urban constituencies.

Levelling up and coastal and rural areas

The Government’s Levelling Up the United Kingdom white paper states seaside towns are among those areas with the “highest levels of community need and poor opportunities for the people who grow up there”, while rural areas can be low in “connectivity, skills and productive capital”.

In September 2022, the Rural England Prosperity Fund was launched. This is designed to replace EU funding from LEADER and the Growth Programme, which were part of the Rural Development Programme for England. It is designed to fund capital projects for small businesses and community infrastructure, with the aim of improving productivity and strengthening the rural economy.