Between 2001 and 2021, nearly half (47%) of OECD non-metropolitan regions near small cities and 40% of remote regions saw their populations decrease – a trend that is expected to continue in many places. In the European Union, two-thirds of regions are projected to have less population in 2050 than in 2019, while nearly 9 of 10 regions are projected to have a higher median age. Some regions also face high rates of emigration, particularly of young and skilled workers. Shrinking, ageing and emigration can have a strong impact in a region, potentially leading to a deterioration of its public finances, skill and labour shortages, underused land and housing, loss of community vitality and higher service provision costs.
In the face of demographic change, regions need to proactively adapt to safeguard residents’ well-being. This requires re-scaling and updating policies, governance structures, public services and investments to align with future population needs. At the same time, revitalising efforts can also help mitigate demographic decline. By combining adaptation with mitigation, governments can maintain a high-quality built environment and effective public services, enhancing their attractiveness to employers and talent.
In order to help regions in the European Union better respond to demographic change, the European Commission (EC) issued a Communication in January 2023 on Harnessing Talent in Europe’s Regions. This led to the establishment of the Talent Booster Mechanism (TBM), which aims to assist regions in training, retaining and attracting people with the necessary skills and competences to mitigate the impact of demographic transition. Under Pillar 2 of the TBM, the OECD is supporting ten regions in their adaptation efforts to demographic change: Região Autónoma dos Açores (PT), Banská Bystrica Self-Governing Region (SK), Campania (IT), Castilla y León (ES), Centre-Val de Loire (FR), Extremadura (ES), Nord-Vest (RO), Norte (PT), Regional Council of Pohjois Savo (FI) and Thessalia (EL).
The OECD will prepare a report for each of the ten regions that includes detailed assessments and recommendations, and five main chapters. Chapter 1 presents the assessment and main recommendations of the report. Chapter 2 sets the scene with an overview of the socio-economic context, the ‘talent development trap’ and the institutional and policy context. Chapter 3 explores adapting land-use and spatial planning to demographic change. Chapter 4 explores adapting subnational government finance, public investment and multi-level governance frameworks to demographic change. Chapter 5 explores adapting transport, education, childcare and healthcare to demographic change. Each report is based on extensive analysis, site visits, workshops and peer learning exchanges.
This report is part of the OECD workstream on “Preparing Regions for Demographic Change” and was carried out as part of the OECD Regional Development Policy Committee (RDPC) Programme of Work and Budget. The RDPC provides a unique forum for international exchange and debate on regional economies, policies and governance. The report was submitted for comments to the RDPC [CFE/RDPC(2025)13] via written procedure in August 2025.