Why is this theme important to small towns?

Employment is often linked to the movement of people in a region, and so can quickly affect the growth or decline of a local population. This is linked to the location, number and quality of jobs available. Therefore, the employment sector is vital to the social and economic development of a town.

Small towns traditionally have economic ties to the land. Accordingly, employment has historically been strong in land-based or related industries such as agriculture, fishing, farming, or milling. However, major technological changes in both agricultural and manufacturing industries have led to reduced employment opportunities for residents in many small towns. Whilst some towns have responded to the growth of the knowledge economy, others have failed to support an entrepreneurial spirit and have restricted the chances for young people to work and stay in the town.

Another major area of employment in small towns also tends to be in the tourism sector. Depending on the characteristics of the town, this can lead to seasonal employment fluctuations (see ‘Tourism’ component).

By nature, small towns do not have the wide range of economic activities found in more populated or urbanised areas. This tends to lead to a narrowly-focused skills base within the community. It also means that a large proportion of the population will be employed in a small number of sectors. These characteristics leave the small town economy vulnerable to change and often factors are outside the control of local people.