This Arctic City Added 9,000 Residents in Four Years

Oulu is a city in Finland.

GROWING: The vibrant city of Oulu, Finland, has added over 9,000 new residents in four years, making it a growing hub of knowledge and innovation in the Arctic. Credit: Iurii Buriak via iStockPhoto.

This Arctic City Added 9,000 Residents in Four Years
Why some Arctic regions are growing against the odds.

In a twist to the narrative of Arctic population decline, the city of Oulu in northern Finland has emerged as a beacon of growth, adding over 9,000 residents between 2020 and 2024.

The topic was addressed during a keynote presentation at the recent Arctic Frontiers Abroad conference in Oulu, where researchers from the Business Index North project shed light on the complex demographic landscape of the Arctic region.

Dr. Alexandra Middleton (Oulu University Business School) and Dr. Andrey Mineev (Nord University Business School, High North Center) presented their findings to an audience of policymakers, business leaders, and academics gathered to discuss cross-border cooperation in energy and security.

IN OULU: Mineev and Middleton during their presentation. Photo by Arctic Frontiers.

– What we observe here is that the big cities that have university centres are growing, explained Dr. Middleton, pointing to a map highlighting population trends across northern Norway, Sweden, and Finland.

These are Luleå, Umeå, Tromsø, then Bodø, Oulu, and Rovaniemi.

However, this growth is not uniform across the region, the researchers highlighted:

30-45% of people live in municipalities with declining population. Larger municipalities are growing – smaller are declining.

GRAPH: One of the infographics the researchers presented during their keynote.

The Urban-Rural Divide

This urban-rural divide poses significant challenges for the region.

As Middleton posed to the audience:

– Should we just accept this situation, the trend of growing urban-rural divide, that periphery is shrinking in population and only university centres are growing and busting?

ATTRACTIVE: A scenic photo of residential buildings by the river in Oulu, reflecting the city's appeal to new residents and its ongoing urban development. Credit: srugina via iStockPhoto.

The researchers highlighted four critical factors for development in the Cap of the North (Nordkalotten) region: people, renewable energy, connectivity, and knowledge.

Oulu's success appears to be closely tied to its strength in these areas, particularly as a center of knowledge and innovation.

The area of North Calotte has quite many small but advanced innovative clusters, so-called microclusters, Dr. Mineev explained.

– Together with universities they should play a role in transition to knowledge economy, which is important to overcome dependency on natural resources.

– At the forefront, we have our expertise in space, winter testing, data centers, and information communication technology, and circular economy, Mineev further noted, describing the region's innovative microclusters.

IN FINLAND: Middleton and Mineev spoke during the Arctic Frontiers Abroad conference in Oulu. Photo by Arctic Frontiers.

Yet, even as Oulu thrives, the presenters stressed the need for a holistic approach to Arctic development.

– We need to make decisions about migration policies, about housing, and about job creations to make these regions attractive for newcomers, for new talent.

Called for Collaboration

The presentation was part of a larger event focusing on new solutions for cross-border cooperation in energy and security, highlighting the interconnected nature of these issues in the Arctic context.

As the Arctic region grapples with significant changes, from climate shifts to geopolitical tensions, the success of cities like Oulu provides valuable insights.

It suggests that investments in education, innovation, and quality of life can help Arctic communities not just survive, but thrive in the face of challenging trends.

The researchers concluded their presentation with a call to action, urging attendees to consider:

– What kind of strategy do we need for people, renewable energy, knowledge and connectivity in these regions? Do we work alone or together, and is it devised as a bottom-up or top-down strategy?

As policymakers and business leaders discuss these questions, the example of Oulu stands as a example of the potential for growth and innovation in the High North, proving that with the right approach, Arctic cities can indeed buck the trend of population decline.

CITYSCAPE: Dr. Alexandra Middleton and Dr. Andrey Mineev, enjoying the sunny weather in Oulu, a city at the forefront of Arctic innovation and growth.

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About Business Index North

  • The main goal of the Business Index North (BIN) project is to increase awareness of opportunities as well as challenges for sustainable development in the Arctic. In doing so, BIN develops analytical tools and contribute to dialogue arenas for Arctic stakeholders.
  • One of the main outputs is a periodic analytical report, “Business Index North”. The report provides valuable information for International institutions, National, Regional, and Local authorities, Arctic officials, Educators, Media stakeholders, and students interested in the Arctic.

Learn more.

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