Rural Economy

The economy of the rural West Midlands has historically been influenced by land based industries and the activities that have grown up around these. This is now changing because of the long term decline of the land based sector which presents a series of unique challenges for the future.

The economic structure of the West Midlands rural areas is clearly very different from that of the Region’s urban areas. The rural economy is generally skewed towards lower wage and lower value added sectors. One of the key features is also the dominance of the public sector as an employer. Although there are advantages associated with good employment terms and a strong emphasis on skills development, there are some clear disadvantages because it is focused primarily on non traded goods, which limits the supply chain. There is also a high proportion of small and micro-businesses.

On the basis of most economic measures, the region’s rural areas have experienced strong economic performance over the last decade. There has been strong growth in employment, together with strong business formation rates and above average survival rates against strong population growth. This overall picture is not true uniformly across the Region. Some rural areas, particularly in the remote rural west have experienced less economic growth as well as generating concerns about the quality of economic growth in terms of wage rates and skill levels.

The challenge for regional partners in the West Midlands is to focus policies and programmes on overcoming the weaknesses for those rural residents who are disadvantaged by their rural location, as well as improving the competitive advantage of businesses and residents. The key economic challenges for the rural areas of the region are:

• Achieving balanced sustainable growth
• Encouraging and supporting business and enterprise
• Sharing prosperity and access to opportunities
• Capitalising on the environment and heritage