FRESH TAKES ON BIG IDEAS

There are about 46 million people living in rural areas in the United States, spread across more than three-quarters of US land. They’re farmers, manufacturers, and teachers. They’re also nurses, small-business owners, and public servants. They’re the makers, producers, and workers fueling the US economy.

Yet rural America is often overlooked. Rural communities contribute $2.7 trillion to the national GDP yet receive less than 10 percent of philanthropic dollars. America’s rural areas sometimes lag behind in health outcomes, education, and broadband access, and they often don’t get the same level of business investment or support as more urban locales. 

How can we bring rural America more fully into the national conversation? First, we can recognize the multitudes within rural America and debunk some of the myths. Contrary to popular perception, rural America isn’t universally in decline or distress. Yes, some places face deep challenges. But the image of rural America as only struggling agricultural or coal-country communities, or only all-White communities that are aging and experiencing population loss, doesn’t capture the full reality. Many rural areas are vibrant and evolving—experiencing growth and increasing diversity, both demographically and economically. 

Our research has identified six distinct community archetypes of rural America, each with its own economic patterns and opportunities. Agricultural powerhouses are the small but stable communities that feed the nation; they have high labor participation. Manufacturing workshops make up more than a quarter of rural America, comprising both deindustrializing Rust Belt communities and midsize, fast-growing regions (especially in the South) that are benefiting from the reshoring boom. Resource-rich regions include economies that are built around mining or energy—they often have declining populations, yet they generate GDP per capita that is twice that of agricultural powerhouses, the next-highest category by this metric. Migration magnets are located near metropolitan areas or tourist hubs and are enjoying rapid growth. Middle America is a broad and diverse set of communities that don’t have the defining characteristics of other archetypes but currently experience solid economic outcomes. And finally, remote regions are often geographically isolated and economically distressed. 

“Many rural areas are experiencing growth and increasing diversity, both demographically and economically.”

Each archetype requires a tailored approach, because what works in an agricultural area in Texas may not work in a remote county in Montana. But there is potential everywhere. For example, one of the most striking findings from our research relates to advanced manufacturing: In the past five years, more than $1 trillion in new manufacturing investments have been announced, and two-thirds of those are within commuting distance of rural areas. That’s extraordinary. It represents a once-in-a-generation opportunity for rural workers to access good jobs, often without needing a college degree. Properly harnessed, it could mean $34 billion in new wages and $20 billion in productivity gains. 

To seize opportunities like this, we have to close the skills gap. Nearly 80 percent of rural students say they want career-connected learning, yet only half have access to it. The same gap exists for apprenticeships. We’ve seen bright spots—such as an industrial-development training partnership in Talladega County, Alabama, that’s bringing in 4,500 high-skilled jobs and more than $2 billion of investment into the community—but we need many more. The path forward lies in tighter collaboration between K–12 educational systems, employers, and local institutions.

At the core, working for rural America is about helping people stay where they want to live while still finding opportunities there. Historically, the engine of American mobility has involved moving for work. But rural Americans are less likely to move or switch industries. That trade-off doesn’t have to exist. People can stay rooted in their communities and also access jobs of the future.

The challenges ahead are real; healthcare access, digital connectivity, and transportation are only a subset of issues that must be addressed. But there’s momentum. Anchor institutions are stepping up. Investors are asking smarter questions. Communities are leaning in. From banks and philanthropies to community colleges, hospitals, and local development organizations, there’s a desire for a new kind of partnership that works with rural communities instead of imposing things on them. If we recognize rural America as the diverse, evolving economy that it truly is—and invest intentionally in its people and places—then this can be a hopeful chapter in the American story. 

—Edited by Christine Y. Chen, senior editor, Denver

ABOUT THIS AUTHOR

Sarah Tucker-Ray is a partner in McKinsey’s Washington, DC, office and a leader of the McKinsey Institute for Economic Mobility.