In an interconnected global economy, regions face recurring economic shocks and intense competition. For policymakers and researchers, understanding the drivers of local employment growth has become critical. Recent theoretical advances highlight the importance of different relational proximities that influence the benefits of the geographic clustering of economic activities.
Our research focusing on France’s labour market areas – “geographical areas within which most of the labour force lives and works” – from 2004 to 2015 offers new insights into how industrial diversity affects local employment. The study finds that having a variety of industries – especially those related to one another – can be a significant driver of employment growth. This finding has crucial implications for regional development strategies.
