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Rural unemployment rates declined for all education levels from 2010 to 2015

Wednesday, June 7, 2017

Unemployment rates for rural adults are lower for those with higher educational attainment. But during the Great Recession (shaded area of the chart), unemployment rates across all education levels roughly doubled between 2007 and 2010. Rural working-age adults (ages 25-64) without a high school diploma saw their unemployment rates climb the most, compared to those with higher educational attainment. For example, the difference in unemployment rates between rural working-age adults without a high school diploma and those with at least a bachelor’s degree grew from about 6 percentage points in 2007 to 11 percentage points in 2011. As the rural economy recovered, both rural and urban unemployment rates fell and trended toward pre-recession levels. For example, after peaking at about 15 percent in 2010, the unemployment rate of rural adults without a high school diploma dropped under 10 percent by 2015. The overall unemployment rate in 2015 was 5.7 percent in rural areas, compared to 5.2 percent in urban areas. This chart appears in the April 2017 ERS report Rural Education at a Glance, 2017 Edition.

Rural education levels are improving, but still lag urban areas

Friday, April 7, 2017

Compared with rural (nonmetro) areas, urban (metro) areas have historically had a higher share of adults with bachelor’s, postgraduate, and professional degrees. Between 2000 and 2015, the share of urban adults with at least a bachelor’s degree grew from 26 to 33 percent, while in rural areas the share grew from 15 to 19 percent. This gap may be due to the higher pay offered in urban areas to workers with college degrees. Rural areas have improved in terms of high school completion: The share of rural adults with less than a high school diploma dropped to 15 percent in 2015, close to the share for urban adults (13 percent). The share of adults with an associate’s degree (and some college, no degree) was also similar in rural and urban areas. This chart appears in the April 2017 ERS report Rural Education at a Glance, 2017 Edition.

Educational attainment rates remain lower for rural minorities

Wednesday, January 18, 2017

Higher educational attainment is closely tied to economic well-being—through higher earnings, lower unemployment, and lower poverty. While educational attainment in rural America has improved over time, rural areas still lag urban areas in educational attainment. Moreover, within rural areas, educational attainment varies across racial and ethnic categories. In general, minority populations within rural areas have relatively less education. About a quarter of adults age 25 and over in the rural Black population, 20 percent of Native Americans/Alaska Natives, and almost 40 percent of rural Hispanics had not completed high school or the equivalent in 2015. These shares are considerably higher than for rural Whites, with 13 percent lacking a high school diploma. Lower attainment levels for minorities may both reflect and contribute to high rates of poverty. Childhood poverty is highly correlated with lower academic success and graduation rates, while lower educational attainment is strongly associated with lower earnings in adulthood. This chart updates data found in the ERS report Rural America at a Glance, 2015 Edition, published November 2015.

Unemployment rate for rural veterans at its lowest since before the Great Recession

Monday, November 7, 2016

The unemployment rate for rural veterans has declined steadily since reaching its peak of 10.3 percent in 2010. In 2015, it stood at 5.0 percent, its lowest rate since the start of the 2007-09 recession. The unemployment rate for young rural veterans (ages 18 to 34) has seen a large decline too—from a high of 15.7 percent in 2009 to 7.9 percent in 2015. Young veterans often face high unemployment due to service-related disabilities and a lack of civilian work experience, which is a greater obstacle when the economy is weak. The recent drop in unemployment for all veterans partly stems from the post-recession national economic upturn. Public and private efforts that help veterans transition into the workplace quicker and into better paying jobs that fit with their skills have also reduced the time that veterans remain unemployed. These efforts include greater recognition of the skills veterans learn during their service—such as discipline and timeliness—and the value of those skills in the workplace. This chart provides an update to the ERS report, Rural Veterans at a Glance.

Rising income inequality drove most of the increase in child poverty between 2003 and 2014

Wednesday, May 18, 2016

Between 2003 and 2014, the percent of children living in poverty as measured by ERS researchers increased by 3.4 percentage points in rural areas and 3.0 percentage points in urban areas. Changes in rural and urban average household income between these two dates were small, and had little effect on child poverty rates. Instead, most of the rise in child poverty was the result of an increase in income inequality, meaning that lower income families fared worse than average. In rural areas, 1.2 percentage points of increased child poverty could be attributed to changes in family characteristics and other demographic factors, including a decline in the share of children living in married-couple families, a slight decline in the number of working-age adults per family, and a slight rise in the number of children per family. The remaining increase—accounting for 1.9 percentage points in increased child poverty—reflects rising inequality within demographic categories. For urban children, family characteristics and other demographic factors had little net effect on child poverty. This chart is based on the ERS report, Understanding the Rise in Rural Child Poverty, 2003-2014, released May 16, 2016.

Rural women, especially young women, are more likely than rural men to have college degrees

Wednesday, March 30, 2016

The education of workers is closely linked with economic success. Workers with educations beyond high school degrees are more likely to be employed and earning higher wages than workers with high school degrees or less education. Educational attainment of both men and women in rural areas has grown over time, and rural women are more likely to have some college experience or hold associate or bachelor’s degrees than rural men. For example, the most recent (2014) American Community Survey shows that 63 percent of rural young women (age 25-34) had schooling beyond a high school diploma, compared with less than half (47 percent) of rural young men; nearly a quarter of rural young women held a bachelor’s degree or higher. The gender-education gap beyond a high school diploma for rural young adults has widened, from 11 percentage points in 2000 to 16 percentage points in 2014. This gap is more pronounced in rural areas than in the nation as a whole. This chart is based on the ERS Rural Employment & Education topic page.

Service industries account for the largest share of rural and urban employment

Friday, March 25, 2016

Overall employment in rural (nonmetropolitan) areas accounts for between 13 and 14 percent of all U.S. employment. However, the distribution of employment across industries differs between rural and urban areas. Service industries account for the largest share of employment in both rural and urban areas but are more heavily represented in urban areas, where they account for close to three-fifths of all employment. Within the service sector, jobs in finance, real estate, administration, and professional/scientific/technical services were particularly concentrated in urban areas. Rural areas account for 72 percent of the Nation’s land area, and employment in primary extractive industries that depend largely on the distribution of land and natural resources is greater in rural than in urban areas. Nonetheless, these industries—farming and forestry/fishing/mining—accounted for just 10 percent of total rural employment in 2014. Manufacturing employment is also a bigger part of the employment mix in rural areas, largely reflecting past migration of manufacturing activities to lower wage and lower cost locations. Government employment was marginally more common in rural than in urban areas (16 versus 13 percent). This chart is found in the ERS topic page on Rural Employment and Unemployment.

Low-education counties are mostly rural and concentrated in the South and Southwest

Thursday, March 3, 2016

The proportion of adults lacking a high school diploma or equivalent declined in rural America (defined here as nonmetro counties), from 32 percent in 1990 to 15 percent in 2014. The proportion of rural adults with college degrees also increased from 12 to 19 percent during that time. Despite these overall gains, educational attainment varies widely across rural areas. ERS’s latest county typology classifies low-education counties as those where at least one of every five working-age adults (age 25-64) has not completed high school. In an average of data over 2008-12, ERS identified 467 low-education counties in the United States, 367 of which were rural. Eight out of 10 of all low-education counties are located in the South. Three-fourths of rural low-education counties also qualified as low-employment in the latest ERS county typology. Over 40 percent of rural low-education counties were both low-employment and persistently poor, reflecting the difficulty that adults without high school diplomas have in finding and retaining jobs that pay enough to place them above the poverty line. This map is part of the ERS data product on County Typology Codes, released December 2015.

Among age groups, children faced highest poverty rates in rural America in 2014

Friday, January 22, 2016

Poverty rates for rural children underwent the largest increase during the 2007-09 recession, rising from 21.9 percent in 2007 to 24.2 percent in 2009. (The poverty status of children depends on the income, size, and composition of their families.) Child poverty continued to increase at the start of the economic recovery and was 25.2 percent in 2014. Poverty for the rural working-age population also increased during the recession and climbed modestly in recovery. Conversely, the poverty rate for rural seniors declined during the recession and has changed little during the recovery. Rural children were also more likely to be deeply poor—in families with an income below half of the poverty level—than were other age groups. In 2014, 11.3 percent of rural children lived in deep poverty, compared with 7.8 percent of the rural working-age population. This chart is found in Rural America At A Glance 2015 Edition, November 2015.

Educational attainment rates were lower for rural minorities in 2014

Friday, January 15, 2016

Higher educational attainment is closely tied to economic well-being—through higher earnings, lower unemployment, and lower poverty. While educational attainment in rural (nonmetro) America has improved over time, rural areas still lag urban (metro) areas in educational attainment. Moreover, within rural areas, educational attainment varies across racial and ethnic categories. In general, minority populations within rural areas have lower average levels of educational attainment. About a quarter of adults age 25 and over in the rural Black and Native American/Alaskan Native populations, and 40 percent of rural Hispanics, had not completed high school or the equivalent in 2014. These shares are considerably higher than for rural Whites, with 13 percent lacking a high school diploma. Lower attainment levels for minorities may both reflect and contribute to high rates of poverty; poverty in childhood is highly correlated with lower academic success and graduation rates, while lower educational attainment is strongly associated with lower earnings in adulthood. This chart is found in the ERS publication, Rural America At A Glance, 2015 Edition, November 2015.

Editor's Pick 2015, #1:<br>One in five rural counties had child poverty rates over 33 percent

Thursday, December 31, 2015

Child poverty rates varied considerably across nonmetropolitan (rural) counties according to 2009-13 county averages (data on poverty for all U.S. counties are available from the American Community Survey only for 5-year averages). According to the official poverty measure, one in five rural counties had child poverty rates over 33 percent. Child poverty has increased since the 2000 Census (which measured poverty in 1999) and the number of rural counties with child poverty rates of over 33 percent has more than doubled. Improving young adult education levels tended to lower child poverty rates over the period, but increases in single-parent households and economic recession were associated with rising child poverty. Metropolitan counties had average child poverty rates of 21 percent in 2009-13. This map appears in the July 2015 Amber Waves feature, Understanding the Geography of Growth in Rural Child Poverty.

Editor's Pick 2015, #5:<br>Rural employment yet to recover to prerecession levels

Thursday, December 24, 2015

Employment fell by roughly 5 percent in urban areas and 6 percent in rural areas between the first quarter of 2008 and the fourth quarter of 2009—a period that includes the Great Recession. In 2010, the first full year of the economic recovery, urban and rural employment levels grew at comparable rates, and rural areas experienced modest growth the following year. This was followed by 2 years of near-zero employment change before growth resumed in early 2014. An annual growth of more than 1 percent between mid-2014 and mid-2015 has brought the number of employed rural residents (total rural employment) back above 20 million people for the first time since 2008. As of mid-2015, that number remained more than 3 percentage points below its prerecession peak in 2007. This chart is found in the 2015 edition of Rural America At A Glance, released November 30, 2015.

Rural education levels improve, still lag urban areas

Tuesday, December 8, 2015

In 1960, 60 percent of the rural population ages 25 and older had not completed high school. By 2014—more than 50 years later—that proportion had dropped to 15 percent. Over the same period, the proportion of rural adults ages 25 and older with a bachelor’s degree or higher increased from 5 percent to 19 percent but remained well below the proportion in urban areas (32 percent) in 2014. The proportion of rural adults with a college degree or more increased by 4 percentage points between 2000 and 2014 and the proportion without a high school degree or equivalent, such as a GED, declined by 9 percentage points. The gap between urban-rural college completion rates has increased, even for young adults, who are more likely to have completed high school than older cohorts. Between 2000 and 2014, the share of young adults age 25-34 (not shown in this chart) with bachelor’s degrees grew in urban areas from 29 to 35 percent. In rural areas, the college-educated proportion of young adults rose from 15 to 19 percent. This chart is found in the ERS publication, Rural America At A Glance, released November 30, 2015.

Rural employment yet to recover to prerecession levels

Wednesday, December 2, 2015

Employment fell by roughly 5 percent in urban areas and 6 percent in rural areas between the first quarter of 2008 and the fourth quarter of 2009—a period that includes the Great Recession. In 2010, the first full year of the economic recovery, urban and rural employment levels grew at comparable rates, and rural areas experienced modest growth the following year. This was followed by 2 years of near-zero employment change before growth resumed in early 2014. An annual growth of more than 1 percent between mid-2014 and mid-2015 has brought the number of employed rural residents (total rural employment) back above 20 million people for the first time since 2008. As of mid-2015, that number remained more than 3 percentage points below its prerecession peak in 2007. This chart is found in the 2015 edition of Rural America At A Glance, released November 30, 2015.

Nonmetro unemployment rates have declined, but remain highest for adults with the lowest levels of education

Friday, October 30, 2015

The nonmetro unemployment rate fell between 2010 and 2014 as the economy continued to recover from the national recession that began in late 2007. The likelihood of being unemployed was much higher for adults (ages 25 and older) at the lowest levels of educational attainment during the 2007-2014 period. Data from the Census Bureau’s Current Population Survey show that differences in unemployment rates between the least and most highly educated nonmetro adults nearly doubled over the 2007-2010 period. Since 2010, unemployment rates have fallen, especially for those without a high school diploma. In 2010, nearly 15 percent of adults without a high school diploma were unemployed, while in 2014, 9.6 percent of adults in this group were unemployed. Overall, unemployment rates declined across all levels of educational attainment for nonmetro adults, showing a gradual trend towards pre-recession levels. This chart is found on the ERS topic page on Rural Employment and Education, updated September 2015.

Nonmetro job growth accelerates in 2015, but is unevenly distributed

Friday, September 4, 2015

The number of rural (nonmetro) jobs rose by 239,000 (1.2 percent) between the second quarters of 2014 and 2015, more than double the rate of growth over the prior year. Rural job growth still lags behind the rate of growth in metro areas, which saw the number of jobs rise by 1.8 percent over this period. Moreover, while the number of jobs in urban areas now exceeds the peak levels recorded prior to the Great Recession in 2007, rural employment is still well below its pre-recession peak. Rural job growth was unevenly distributed; some 1311 rural counties saw no change or an increase in jobs (ranging up to 69 percent growth), but 665 experienced job declines, with the largest decline being 19 percent. Rural counties in several oil and gas-producing states, such as Texas, Kansas, and North Dakota, which had generally experienced job growth between 2013 and 2014, experienced declines in 2014-15. The vast majority (88 percent) of rural counties in the block of Southern States stretching from Arkansas to Georgia experienced job growth, whereas, in 2013-14, 71 percent of these rural counties had employment losses. This map updates one found in the ERS report, Rural America At a Glance, 2014 Edition.

One in five rural counties had child poverty rates over 33 percent

Thursday, July 23, 2015

Child poverty rates varied considerably across nonmetropolitan (rural) counties according to 2009-13 county averages (data on poverty for all U.S. counties are available from the American Community Survey only for 5-year averages). According to the official poverty measure, one in five rural counties had child poverty rates over 33 percent. Child poverty has increased since the 2000 Census (which measured poverty in 1999) and the number of rural counties with child poverty rates of over 33 percent has more than doubled. Improving young adult education levels tended to lower child poverty rates over the period, but increases in single-parent households and economic recession were associated with rising child poverty. Metropolitan counties had average child poverty rates of 21 percent in 2009-13. This map appears in the July 2015 Amber Waves feature, "Understanding the Geography of Growth in Rural Child Poverty."

Rural and urban unemployment rates follow similar trends

Tuesday, January 20, 2015

Both urban (metro) and rural (nonmetro) unemployment rates have dropped since the highs reached at the end of the most recent recession. In 2007, the rural unemployment rate averaged 5.1 percent, compared to 4.5 percent in urban areas. As the recession unfolded, metro and nonmetro unemployment rates rose rapidly and converged, peaking at 10 percent in the first quarter of 2010. Since that time, the two unemployment rates have followed similar downward trends. The seasonally adjusted rural unemployment rate stood at 6.4 percent in the second quarter of 2014, while the urban rate fell to 6.2 percent. Until recently, the bulk of the decline in the rural unemployment rate is due to a reduction in the number of people seeking work, not an increase in the number of people working. This chart is found in the October 2014 Amber Waves feature, "Rural Employment in Recession and Recovery."

The earnings advantage from higher education is more pronounced in urban areas

Friday, December 12, 2014

Despite an upward trend in rural educational attainment levels over time, a larger proportion of working-age adults in urban areas have college degrees. This rural-urban disparity is partly the result of considerably higher earnings levels for college graduates and advanced degree holders in urban areas. Many young adults leave rural areas to attend college, and many remain in urban areas after college due to the higher earnings available to them in those areas. In contrast, differences between rural and urban earnings levels are much smaller for those with less education, who thus have less incentive to move to urban areas. However, despite the lower earnings generally available in rural areas, some individuals and families at all levels of educational attainment migrate from urban to rural areas, as quality-of-life factors, lower housing costs, personal ties, or other specific opportunities motivate them to move or move back to rural America. This chart is found in the 2014 edition of Rural America at a Glance, EB-26, November 2014.

Many rural counties continued to lose jobs in 2014

Monday, November 24, 2014

While the U.S. economy is now in its 6th year of recovery from the Great Recession of 2007-09, many rural areas have struggled to recover the jobs lost during the downturn. While urban employment now exceeds pre-recession levels, rural employment remains well below its 2007 peak and has continued to fall over the last year in many areas. Notable clusters of employment decline can be found in the Deep South, Appalachia, the Mountain West, and the Pacific Northwest. Employment in rural America as a whole is less than 2 percent above the employment trough reached during the recession, and rose less than 1 percent between mid-2013 and mid-2014. One example of employment growth, however, was seen in the Northern Plains, where new jobs have been generated by rising energy extraction. Rural counties that are adjacent to metro areas have also experienced faster-than-average job growth since 2009, after having suffered larger-than-average job losses during the 2007-09 recession. This map is found in the 2014 edition of Rural America at a Glance, EB-26, November 2014.

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