Breadcrumbs
Rural Economies - Exploding the myths - 29 October 2002
"Contrary to popular opinion, rural economics are not just about agriculture and tourism. Important though these industries are, the reality is much more complex, with more than 80% of the rural workforce employed in other jobs. The lion's share is employed in manufacturing, wholesale and retail, public administration and financial services, compared with 4% of the rural workforce who are employed in farming.
"The real rural economy holds some surprises. For example, whilst only 14% of urban jobs are now in manufacturing, more than 17% of total rural employment is in the manufacturing industry. Another overlooked fact is the positive contribution that in-migrants make to rural areas. All too often, they are characterised as commuters who buy up local rural property, forcing prices up, but who work in town and do all of their shopping in the out-of-town superstore. In short, people who put nothing back into the local rural economy. But the reality is more complex. As the Countryside Agency's own research reveals, two thirds of all new business start-ups in rural areas are led by people who have moved in to rural England, each creating an additional 1.7 jobs for local people.
"If the goal for policy makers is to create more healthy rural economies for the future, it is vitally important that these myths are dispelled so that policy in future is better targeted."
ends
Notes to Editors:
The Countryside Agency is responsible for advising Government and taking action on issues affecting the social, economic and environmental well being of the English countryside. www.countryside.gov.uk
Rural Economies- Myths and Facts:
MYTH:"Farming and tourism provide most of the jobs for people living in rural England." | FACT: 80% of the rural workforce is employed in either manufacturing, distribution, financial or public services- not farming or tourism |
MYTH: "Hardly anybody actually works in a rural location, they just commute to the cities" |
FACT: 5.22 million employees and self employed work in rural shops, offices, workshops, factories and farms |
MYTH: "Rural economies are not a significant part
of | FACT: 36% of all VAT-registered businesses in England are in rural areas |
MYTH: "In-migrants and newcomers to the countryside put nothing back into the rural economy" | FACT: Surveys have shown that incomers start up and own up to two thirds of all new businesses in the countryside. |
MYTH: "Manufacturing is a more significant employer for urban people than it is for rural people" | FACT: Whilst 14% of urban jobs are in manufacturing firms, employment in manufacturing industry provides more than 17% of total rural employment. |
MYTH: "Manufacturing is declining everywhere and doesn't lead to stronger rural economies" | FACT: The rate of decline in manufacturing is slower in rural areas than in urban areas. Indeed, in some rural sub-sectors, there has been absolute growth in manufacturing employees. |
MYTH: "Rural poverty does not exist" | FACT: One in four rural households have a total income of less than £10,800 a year. Low income affects residents access to services, affordable housing and jobs |
MYTH: "Rural people are not very entrepreneurial" | FACT: On the contrary, the level of self employment and the proportion of women running businesses is higher in rural England than in urban areas and there are more businesses per head of population - all signs of an enterprising culture. |