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The public sector

In five of the six study areas, public sector activities hold the dominant position in the local economy and thus in the employment structure.

In all areas except Bornholm, employment within the public sector has increased in recent years. The decline on Bornholm relates in the main to the loss of military jobs that have not yet been compensated by government investment in other areas of the public sector. Gotland, on the other hand, has seen the establishment of a university college.

Additionally, Bornholm's job losses within the transport and communications sector are related to the privatisation process of the ferry company that operates the main transport link to and from the island.

Bornholm's relatively poor employment position can therefore be explained by this lack of development in the public sector. Furthermore, Bornholm has serious difficulties in fostering growth within almost all private sectors including tourism, a business sector with extensive local traditions, and one that employs many people.

All of the case study areas benefit from continuing to diversify their economies, but at the same time, it is important to continue to address the traditionally strong sectors of these economies.

Åland has a particular strength in the shipping sector, and this should be addressed to promote its development and combat threats to 'flag out' or close down where possible. Similarily, the Ulstein region has an internationally competitive maritime sector in need of attention.

On Bornholm, Gotland and Åland, tourism plays an important role and policies and initiatives targeting this sector should continue to be developed.

The importance of the tourism sector in Bornholm also means that sections of the labour market are characterised by strong seasonality. Labour market measures have been developed to make it possible for people to avoid becoming long-term unemployed due to this seasonality factor, and instead they can combine working in the tourism sector during the tourist season with measures such as job rotation and training, and perhaps spells of unemployment during other parts of the year.

Another example relating to national regional policies is that of the relocation of state agencies. Gotland has benefited from this type of measure on several occasions, not least as compensation for the loss of military regiments in the last few years. Together with extra investment in the University of Gotland, these additional state agencies will provide an important input to the Gotland economy.

It should however be noted that the lack of a strong tradition in terms of regional policy in Denmark acts as a distinct disadvantage for regional development on Bornholm.