Norrbotten is going like a train – but in the success there are seeds of problems

Norrbotten is a productive region. With the mining industry as the engine, the county has high growth, large investments are underway and low unemployment. This is shown by a new report on Norrbotten's development. But success also contains the seeds of problems. In a webinar on May 12, Region Norrbotten will take a closer look at the conditions that shape the future.

Since the mining boom began in the early 2010s, most graphs have been pointing upwards for Norrbotten – and more steeply than for the country. This is clear in the new report. Norrbotten's role in the economyIt has been developed in collaboration between Region Norrbotten, the County Administrative Board of Norrbotten County and Luleå University of Technology.

Norrbotten's gross regional product in relation to population, GRP per capita, is the second largest in the country year after year. Growth here in the years 2007-2018 has been higher than for Sweden as a whole. Unemployment is low and the wage level is high compared to other counties. During the 2000s, Norrbotten has had the country's highest growth rate in regional income. From 1999 to 2019, the county went from being one of the counties with the highest contribution dependency, to being one of those with the lowest.

The reverse side of the medal

Now an even brighter future looms, with investments in green transition. Investments worth a thousand billion kronor are expected. This includes fossil-free steel, electrification of the mining industry and wind power.
The mining and steel industry contributes greatly to the prosperity and future of the county. But there is a downside to the coin. When one industry dominates so strongly, it has consequences that can actually hinder the county's development.

The report shows that although the mining industry is an important growth engine, it gives the county weaker economic development compared to other counties.

– The county's economy is vulnerable to shifts in global economic conditions. Norrbotten's business and labor market would need to stand firmly on more legs, says Janus Brandin, Regional Development Director.

The education gap is increasing

Statistics on new business start-ups suggest that the mining boom is holding back new business. Skilled and enterprising workers are being sucked up by mining companies. This in turn is hampering the development of a broader business community and a broader labor market.

The level of education is a cause for concern. Norrbotten has a lower proportion of university graduates than the country as a whole, and the gap is steadily increasing. Young people, especially in Malmfälten, have been able to easily get well-paid jobs after high school, and have opted out of higher education.

– It is a path that may work well today, but not tomorrow. The development of the industry means increasingly high demands on knowledge. If companies here are to be able to compete in the future, they need highly educated personnel who can develop new ideas and new technology, says Janus Brandin.

Another challenge is the availability of labor. Many companies already report that a shortage of personnel is hindering their growth. Above all, highly educated labor is needed - those who are currently attracted to the career opportunities, offerings, services and culture of big cities.

Read the full report Norrbotten's role in the economy (pdf)

Please contact Per Erik Andersson, project manager, if you have any questions.
pererik.andersson@norrbotten.se