In it’s “National Social Monitor 2014” report, SJI says small rural firms and rural entrepreneurs need help from the Government to get over their “spatial disadvantage” to benefit from the “knowledge economy”.

The think tank organisation says state intervention is necessary to prevent a two-tier digital divide developing between urban and rural areas.

In relation to agriculture, the organisation says the economic recession and restructuring of agriculture and subsequent decline in off-farm employment has led to a narrowing of the economic base in rural areas.

The report states that small and medium sized towns have seen unemployment increase by 193% during the recession. Also, the number of households where there is no one working, is 20% than the national average.

SJI says in order to diversify the rural economy Ireland needs to move from agricultural development to rural development. It cites possible drivers of rural job creation as childcare, elder care, tourism, “green” products and cultural and creative industries.

The group’s statement on rural development concludes by saying the rural economy has been hindered by the loss of young people to emigration and it “will continue to struggle in any future upturn due to the lack of skilled workers and the corresponding emergence of an ageing population