15 Key Facts Shaping Rural America
- More than 48 million people live in rural America (defined as nonmetropolitan counties) which is nearly 15% of the population in the U.S.
- More than 10 million rural Americans are people of color — Black or African American, Hispanic or Latino, American Indian or Alaska Native, Asian, and Native Hawaiian or Pacific Islander. While the image of rural America is often portrayed as predominantly white, rural America is home to a diverse range of racial and ethnic groups that are often overlooked.
- Geographic income inequality has risen more than 40% between 1980 and 2021. Incomes are 39% higher in large metropolitan areas than in small towns or micropolitan areas, and total employment in rural America was smaller in 2021 than in 2007. Lack of access to high-growth sectors in the knowledge economy, particularly the tradable services sector, has limited access to opportunity in rural areas.
- Close to 80% of counties with long-term, persistent poverty are rural. And the share of rural residents living in persistent poverty counties is disproportionately higher for rural people of color.
- Just 7% of philanthropic grantmaking and giving services organizations are in rural areas. Additionally, the federal grant awards per capita in rural counties amount to $364 compared to $473 awarded in nonrural counties — metropolitan area federal grant awards are almost 30% higher per capita than in rural areas.
- Nearly half (48%) of rural jobs are at high risk of being automated away. Technology has accelerated globalization and automation in recent decades creating disproportionately negative effects on rural areas as rural areas are now more likely to be dependent on employment in manufacturing than agriculture. The median rural county has a higher automation exposure than 75% of urban counties. Within the rural workforce, workers of color are most vulnerable, with 63% of jobs held by rural Black and Hispanic workers at risk of being automated.
- Rural areas are missing over 80,000 tech jobs in their current core industries. Rural non-tech industries are generally behind the national average in tech staffing — about 50% below the average — which means they are likely lagging on technological adoption which could make them less competitive in the long run.
- Rural Americans account for 11% of the nation’s workforce, but just 4% of the nation’s tech workforce. And this gap is even wider for racial and ethnic minorities in rural areas.
- While 59% of rural adults find tech careers appealing — with women just as likely as men to find tech work appealing — only 41% have pursued tech education. Awareness plays a crucial role: 44% of those who knew about local tech jobs felt optimistic about securing one, compared to just 15% among those unaware of these opportunities, highlighting the need for better information dissemination. Less than half (43%) of workers in rural America are satisfied with professional training / skills development opportunities (compared to 68% in nonrural areas). Rural high school students are over 15% less likely to have access to computer science classes. Tech talent development programs are needed to help close this gap.
- More than half (51%) of the rural workforce wants to own their own business in the future, compared to just 41% of nonrural workers. Yet, entrepreneurship has been declining by nearly 40% since 1978 and new businesses are increasingly concentrated in large metropolitan areas — where startup rates are 18% higher than in small towns. Education, training, mentorship and support programs are essential in rural areas to empower small businesses and foster entrepreneurship.
- Approximately 12% of all businesses are in rural America, but just 6% of high-tech establishments are in rural communities. Despite declines in business startup rates, high-tech startups have been increasing since 1980 mainly in large incumbent metropolitan areas. Building a tech economy from the ground up ensures that innovative ideas from rural America are not overlooked and helps rural areas to develop a more dynamic economy from a diversified economic base, promoting long-term prosperity and resilience.
- Less than 2% of venture capital is invested in rural businesses. Access to venture capital is crucial for new businesses, as it provides the funding needed to scale operations, reach broader markets, and build a competitive advantage. Though the share of venture capital going to rural areas is small, it is growing – venture capital funding going to rural companies increased by 338%, from $891 million in 2018 to $3.9 billion in 2022.
- In the past decade, the rural-urban broadband gap has significantly narrowed from a 30-point difference to less than 10 percentage points, improving access in rural areas. Rural broadband access stood at just 65% in 2014 and only reached 92% in 2020 with the digital divide even more pronounced for rural minority populations, whereas nonrural access to broadband (25/3 mbps) has exceeded 94% since 2014. Rural communities that effectively leverage broadband see business growth rates that are 213% higher and per capita income growth rates that are 18% higher.
- Tech jobs are expected to grow three times faster than the national average. And rural workers in computer and math occupations — a.k.a. tech jobs — see average earnings of roughly $79,000, which is 60% more than the average rural worker ($48,536).
- Tech employment opportunities in rural areas have a multiplier effect, creating three to five additional jobs in the community for each new tech job.
Sources
- CORI, 2022 – Rural Aperture Project;
- U.S. Census, 2022; CORI – Rural Aperture Project
- U.S. Department of Commerce; Federal Reserve; CORI, 2023 – Rural Aperture Project; Eckert et al., 2023
- CORI, 2023 – Rural Aperture Project; ACS, 2021
- Lightcast, 2023; CORI analysis of USASpending.gov 2022 grant awards; CORI, 2023 – Rural Aperture Project
- CORI, 2022 – Automation in Rural
- CORI, 2022 – Rural America’s Tech Employment Landscape
- Lightcast, 2023
- CORI, 2022 – Rural America’s Tech Employment Landscape; 2024 G.R.O.W. Report; CORI, 2023 – Rural Aperture Project
- 2024 G.R.O.W. Report; CORI, 2023 – Rural Aperture Project; Federal Reserve, 2023; Hathaway, 2013; Federal Reserve, 2021; Census BDS, 2019
- Lightcast, 2023
- CORI, 2023 – Rural Aperture Project
- CORI, 2023 – Rural Aperture Project (FCC Form 477 & FCC staff estimates); CORI, 2024 – Beyond Connectivity
- CORI, 2023 – Rural Aperture Project; BLS, 2022
- Bartik & Sotherland, 2019; Moretti, 2013