Restructuring and risk-reduction in mining: employment implications for northern Sweden

Abstract

In the past, employment in northern Sweden has been largely dependent on natural resources. Shifting demands and price fluctuations for raw materials have caused boom periods as well as times of crisis in local communities. During the first decade of the 21st century, increasing global demand for minerals resulted in substantial investments in the Swedish mining industry. The purpose of this article is to assess the importance of mining for employment in the county of Västerbotten, northern Sweden, by focusing on the time period after 1990. Mining employment constitutes a rather small part of all employment in the study area, due to a restructuring process that started in the 1960s. However, results show that mining employment has increased slightly, especially after 2002. Global demand for minerals and related technology and services make it reasonable to believe that this change will have a deeper significance for employment opportunities in the study area. Restructuring in mining generates new business opportunities in subcontracting, consultancy and equipment production, but also creates new challenges. Consequently, it is important to make strategic decisions on regional and local levels concerning how to make use of the development in the mining industry to stimulate long-term regional employment growth.

Keywords

• employment
• mining
• resource-based communities
• restructuring
• Sweden