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The influence of Urban Economies on
The socio-economic Characteristics
Of Rural Areas
The Changing Rural Economy in the UK
In rural areas:  A greater proportion of people are working in agriculture (4.4%)
 However even in areas where farming is most important it only employs 15% of the population
 26.4% of people are employed part-time.
 More people are self-employed than in urban areas.
 More people work from home.
 Small businesses make up the majority of employers.
Unemployment is actually a lot lower in rural areas than the UK average but the average wage is also a
lot lower.
Rural Deprivation
In many rural areas deprivation is becoming a problem due to the decline in services. In many areas
there is economic decline & depopulation, particularly in isolated areas. In many rural areas there is
now the need to diversify. This has been aided by the rapid decline in farming. The agri-business has
caused an increasing gap between rich & poor farmers and many are being forced out of business. CAP
has not helped this due to competition with the EU. Therefore many farmers can no longer make a
living & employment is increasing. There is an increasing need to diversify in order to make a living.
Diversification - Shropshire
There has been a decline in agriculture in Shropshire due to increased mechanisation & the sale of
farms causing job losses. Also the BSE crisis had a large impact on farmers although they were
subsidised by CAP.
Manufacturing is also in decline in Bishop’s Castle in Shropshire with the closure of the trouser factory
to save money by producing abroad. Government subsidies & grants have slowed the decline but
Bishop’s Castle has been named as a “Town in terminal decline”.
As in many rural areas a lot of people are self-employed these small companies are unable to compete
with the large companies in urban areas.
There are now many new jobs to take the place of agriculture:
 Tourism
 Services
However many of these are casual or part time jobs e.g. fruit picking.
Tourism also helps to pay for the maintenance of the environment. However, money has to be put in to
pay for new infrastructure although this also has long term benefits for the local community. Money is
also lost to pay for damage done to the landscape by tourists e.g. footpath erosion. There are also
worries that rural areas are becoming too dependent on tourism.
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The problems of counter-urbanisation.
Housing is a large problem created by counter-urbanisation. There is an increasing need for social
housing as more people are unable to afford houses as prices are forced up. This has not been helped by
the “right to buy” scheme whereby people in social housing could buy their house. This caused a
reduction of 90,000 homes in rural areas, which were not being replaced. In particular young people are
forced out changing the demographic structure of rural areas & reducing the number of people
working. There is the need to build more houses but they need to be built in traditional styles. Also,
could give local residents 1st pick on housing.
There has also been a decline in services due to counter-urbanisation. People now have cars so travel to
supermarkets forcing local shops & services to close down. This leaves those without a car seriously
lacking in services. The old & young in particular need services which are not available to them &
there is very little government help for them. Similarly transport is poor with very few buses or trains,
leaving those without a car stranded in rural areas. Many people are forced into buying a car causing
greater congestion & pollution.
Social Changes
The influence of urban economies brings many social changes to rural areas. In many cases there is a
decline in local traditions & loss of local community as new people move in. There may also be
conflict between visitors & local residents. However, some social changes can be beneficial:
 Brings new ideas.
 Local customs & traditions may be enhanced by tourism e.g. Scotland.
 Young people no longer have to leave the area in search of work, as there are jobs in tourism.
Changing economy in Cornwall.
There has been considerable change in Cornwall in recent years. The area used to be dominated by
farming, fishing & china clay extraction. This has now declined due to problems of agriculture, fishing
restrictions imposed by governments & resources for mining running out. However, the dominant
sector of the economy is now the tertiary sector. Tourism is the only area where employment is
expanding with around 30,000 jobs. However there is a lot of investment from outside the area and so
money is lost through leakage. Tourism has dramatically increased the economic potential of the
county with over 4 mlln visitors each year who spend £930 million. However tourism is only seasonal
and so many are unemployed during the winter. There is some growth in banking & finance as it is
footloose & many businessmen have moved to Cornwall.
Small firms dominate the local economy with 87% of workers but most work is in towns so people in
remote areas have to commute long distances to work.
Japan – Interdependence of towns & country
The migration of the rural population led to the breakdown of traditional life in the country as people
go to find jobs in the city. There is also the outward diffusion of urban values leading to the loss of
unity & co-operation in rural areas. These influences are strongest near to urban areas highlighting the
rural-urban continuum. Improvements in transport, leisure time & disposable income has also led to
increased urban dwellers & tourists in rural areas affecting the rural way of life.