Differences between rural and urban economies reflect differences in their industrial composition

Many of the differences between rural and urban economies reflect differences in their industrial composition. While service industries account for the largest share of jobs and earnings in both rural and urban areas, rural areas are more dependent on manufacturing and industries producing primary goods—such as farming, forestry, and mining. Industries producing primary goods provide more than 11 percent of rural jobs, but only 2 percent of urban jobs. Manufacturing accounts for nearly 15 percent of rural earnings and just over 9 percent of urban earnings. In contrast, urban areas are more heavily dependent on producer services—such as finance, insurance, and real estate—which account for about 28 percent of urban jobs, but less than 16 percent of rural jobs. The disparity in earnings is even greater: the producer services sector contributed 31 percent of urban earnings, but only about 12 percent of rural earnings. This difference reflects higher earnings per job in urban areas, where that sector provides more highly specialized services and employs more managerial and professional staff. This chart appears in the ERS report Rural America at a Glance, 2016 Edition, released November 14, 2016.

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