Over the past two decades, nearly half of OECD non-metropolitan regions near a large city, 40% of small cities and 40% of rural remote regions saw their populations decrease—a trend that is expected to continue in many places. In the European Union, for example, two-thirds of regions are projected to have less population in 2050 than they had 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 on a region, potentially leading to a deterioration of 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 ensure the continued well-being of residents. This requires re-scaling and updating policies, governance structures, public services and investments to match future populations. By proactively adapting, governments can ensure they can continue to provide a high-quality built environment and effective public services, which can ultimately increase their attractiveness to employers and to 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 providing technical assistance to ten regions to support smart adaptation to demographic transition: 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).
Each of the ten regions are receiving a report with tailored analyses and recommendations to help them adapt to demographic change. The reports include a detailed assessment and recommendations, and four main chapters. 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, childcare, education, 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)10] via written procedure on August 2025.