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USDA's Economic Research Service releases report on state of rural economy

Unemployment declined, median annual earnings have risen.

November 15, 2016

2 Min Read

USDA's Economic Research Service on Monday released its Rural America at a Glance, 2016 Edition.

What did the report find?

Unemployment continued to decline in rural areas in 2015 and rural population has stabilized. Median annual earnings rose in rural areas and poverty fell.

Tell us more about stabilizing of the rural population.

The total population in nonmetro counties was 46.2 million in July 2015, which represents 14% of the nation's population in 72% of the nation's land area. The rural population declined by .3% between 2010-2014, before leveling out in 2015.

What about rural employment?

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Rural employment has increased 1.3% between 2013 and 2015. Seasonally adjusted rural employment grew a further .5% between the end of 2015 and the second quarter of 2016.

"At the depths of the Great Recession, rural counties were shedding 200,000 jobs per year, rural unemployment stood at nearly 10%, and poverty rates reached heights unseen in decades," said Agriculture Secretary Tom Vilsack.

"Over the course of the Obama Administration, USDA has made targeted Federal investments in rural areas to create jobs, generate economic opportunity, and strengthen rural communities. This strategy, focused on production agriculture, the biobased economy, local and regional food systems, and conservation and natural resources, is helping the rural economy retool itself for the 21st century.

"Today's report underscores the result of these efforts: rural America has begun a remarkable comeback. Key economic indicators continue to show that rural America is rebounding. Rural unemployment continued to decline in 2015, dropping below 6% for the first time since 2007, and rural poverty rates have fallen. Median household incomes in rural areas increased by 3.4% in 2015, and rural populations have stabilized and are beginning to grow. Child food insecurity nationwide is at an all-time low."

How much did median earnings rise in rural areas?

Median earnings are lower in rural areas than in urban areas, but housing costs are typically lower in rural areas.  In 2015, rural median earnings rose by more than 2% and exceeded their 2007 level. The ratio of rural earnings to urban earnings rose from 77% in 2007 to nearly 84% in 2015.

How about unemployment in rural areas?

Rural unemployment nearly doubled during the Great Recession, rising from 5.2% in 2007 to 9.9% in 2010. Rural unemployment fell from 9.9% in 2010 to 5.7% in 2015. If participation levels in 2015 were identical to 2010, then the unemployment rate in 2015 would have been an estimated 8.2% in rural areas.

The sources of income vary in rural and urban areas. Where do most rural Americans draw income from?

Rural areas are more dependent upon farming, forestry, fishing, mining and manufacturing. Service industries account for the largest share of jobs and earnings in both rural and urban areas.

The Rural America at a Glance, 2016 Edition report can be viewed on the ERS website.

Source: USDA ERS

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