25 March 2026

Addressing Skills Challenges in Rural Places

Professor Carley Foster, University of Derby; Professor Susan Kirk and Ms Pip Kyle, Newcastle University

Addressing Skills Challenges in Rural Places

Why one size doesn’t fit all

Last year, we contributed to NICRE’s evidence submission to the Defra-led taskforce on delivering the Government’s missions in rural areas. That process reinforced something we see time and again in our work: rural economies are often overlooked in national policymaking.

Too often, policy is designed with urban economies in mind. A one-size-fits-all approach doesn’t reflect the realities of rural places, and it risks widening existing inequalities. One area where this really shows up is skills.

For rural businesses, attracting and retaining workers can be a real challenge. Yet support for skills development in rural areas remains patchy, and wider infrastructure issues, like transport and connectivity, continue to limit how people access work and training.

What our research tells us

Through NICRE-funded research exploring how place and identity shape worker attraction and retention in rural businesses, we’ve seen first-hand that living and working in rural England is not always the idyllic picture it’s often assumed to be.

In the Derbyshire Peak District, for example, we found a combination of challenges:

  • a lack of affordable housing
  • poor digital connectivity
  • higher living costs
  • limited and unreliable transport

These factors all affect whether people can live and work locally. Access to education, training and apprenticeships is also uneven, and not always designed with rural needs in mind.

For businesses, this creates real pressure. Recruitment is harder, retention is fragile, and opportunities to offer progression or “good work” can be limited as a result.

Making the most of place

But rural places also have strengths we shouldn’t overlook.

Our research highlights how natural capital - the landscapes, environment and quality of life rural areas offer - can be part of the solution. When combined with a more joined-up, place-based approach, this can help attract and retain workers.

We’ve seen how collaboration can make a difference. For example, rural businesses and local partners can work together to:

  • share transport solutions for employees
  • collaborate on training and skills development
  • shape apprenticeships so they better fit rural contexts

There are also opportunities to rethink how work is organised. Practices like multi-skilling, job rotation and more flexible roles can help businesses fill gaps while offering more varied and rewarding work for employees.

These kinds of approaches don’t just help businesses. They can also improve wellbeing, increase job satisfaction and strengthen long-term retention.

What needs to happen next

If we’re serious about addressing rural skills challenges, policy needs to start from a clearer understanding of place.

From our perspective, there are a few practical steps policymakers and stakeholders can take:

  • Recognise rural differences
    National skills and employment policies need to reflect the realities of rural labour markets, not assume urban models will translate.
  • Invest in what works
    There is value in learning from other rural areas (both across the UK and internationally) about what helps businesses recruit and retain staff.
  • Support rural employers to tell their story
    Rural businesses can offer diverse roles, multi-skilling and different career paths, but these opportunities are often overlooked.
  • Challenge perceptions of key sectors
    Industries like farming and hospitality are vital to rural economies, yet often struggle with outdated or negative perceptions.

Just as importantly, policy alone isn’t enough. There needs to be strong local support, through business support organisations and partnerships, to help translate national policy into something that works on the ground.

Bringing a rural lens into policy

Our contribution to NICRE’s evidence submission highlighted the importance of embedding a rural lens in policymaking from the outset - not as an afterthought.

Rural businesses are a vital part of the UK economy, but they operate in very different conditions to their urban counterparts. Recognising and responding to those differences is key.

If we get this right, we can move beyond seeing rural areas as “hard to reach” and instead recognise them as places of opportunity, innovation and potential.

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