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Rural America at a Glance

In this year's edition of “Rural America At A Glance,” it was found that in non-metro areas : employment slowed, unemployment is rising, areas are affected by high energy prices and tightening credit, children fare poorly on indicators of health and welfare, the majority of counties have lost population, and minority growth is decelerating.

In likeness of the general economy, non-metro employment growth slowed in 2007-08. Rural manufacturing employment dropped 2.9% in June 2008 from its level the previous year. Metropolitan county manufacturing fell 2.2% over the same period. Home construction industries started to decline in 2007. Transportation equipment employment also declined in 2007-08.

Non-metro unemployment is also rising. It rose by 0.4% to 5.3%, the highest it’s been in about three years, in the second quarter of 2008. The non-metro adjusted unemployment rate, 9.9% in the second quarter of2008, was the highest it’s been in almost four years.

High energy prices and tightening credit are also affecting non-metro areas. Non-metro areas benefitted from higher commodity prices which brought higher manufacturing profits and net farm income.  The average non-metro resident lost more in real income than the average metro resident due to further travel distance and high gas prices. Housing starts in April of 2008 dropped to half of what they had been the previous year. Non-metro banks have tightened credit much less than metro banks. The subprime crisis on housing markets also had less effect on non-metro areas, which was suggested by lower foreclosure rates in these areas.

Children in non-metro areas fare poorly on indicators of health and welfare also. According to the National Survey of Children’s Health, the poverty rate for children in non-core, non-metro area families is the greatest compared to metro areas. Indicators of health and welfare also show non-metro children fare worse than metro area children. Children living in these areas experience higher mortality rates, higher rates of obesity, injury, socio-emotional difficulty, and worse health conditions. They are also found to be more likely tobacco users or to live in a house with more than one tobacco user, repeat a grade, and to have missed more than 11 days of school.

The majority of non-metro counties have also lost population. Despite the gain of 1.3 million between July 2000 and 2006, most counties are experiencing a loss of population growth.

Non-metro areas have also experienced a deceleration in minority population growth. Largely attributed to the increased enforcement of immigration laws, the growth rate for Hispanics has dropped. However the Asian population in non-metro areas continues to increase. Multi-racial population also is fast growing population in non-metro areas.

Federal funds have also had an effect on rural areas. The Food, Conservation and Energy Act of 2008 reauthorized of federal programs that affect rural development programs. Non-metro areas received roughly $7,000 per person for the 2004 fiscal year. In comparison to metro areas, non-metro areas received more dollars per person in direct loans and grants.

To read the 2008 At A Glance article on Rural America visit: www.ers.usda.gov/Publications/EIB40/EIB40.pdf.

Written by Jessica Lindenberg