How Do Farms, Commuting And Remote Linkages Shape Labor Markets?
Rural America covers 74 percent of the land surface of the country with over 46 million citizens in 2023. Yet, since it only comprises 14 percent of the U.S. population, there are larger distances between communities and households with implications for rural workers and their opportunities. The implications for how rural Americans contribute to the labor market are changing quickly, driven by factors as diverse as remote work policies, housing and childcare. In a past Forbes piece on the importance of Small Business to Main Street America, I shared that small businesses and entrepreneurs are particularly important for rural America because of major employers tend to locate in bigger metro areas, but it may be interesting to explore the workforce implications of that pattern.
Rural America is Rebounding but with new Economic Realities
Rural America is experiencing a Renaissance. The United States Department of Agriculture Economic Research Service reported that the most recent US Census reported that migration out of rural America reversed between 2010 and 2020, with growth in almost all county types regardless of degree of rurality. While older people and retirees contribute economically and socially to community vibrancy through contributions such as tax revenue, local expenditures, and community service, they are less likely to participate in the active labor force. Important differences also exist
Total rural employment grew 0.9 percent from 2022 to 2023, nearly recovering to 2019’s prepandemic levels. This employment growth was accompanied by record low rural unemployment rates of about 4 percent. While rural and urban unemployment rates have been nearly equal since before the most recent Recession (December 2007 to June 2009), rural employment growth has been consistently slower than urban growth.
The Changing Role of Agriculture in Rural America
For most of America’s history, farming and rural America are inextricably linked, with an assumption that a healthy farm sector is the foundation of a thriving rural America. But, Deller and Boyce posit the opposite holds true, and that increasingly, healthy farms require linkages to a strong nonagricultural dependent economy. This message is particularly important as the size and structure of U.S. farms changes, with growth in the number of small farms. Regardless of farm sales, the average farm household has about $4 of every $5 in household income from off-farm employment.
Increasingly for rural areas, off-farm income is an important consideration but that dependency on off-farm income varies greatly by the types of farms found in different regions. In terms of size, Deller and Boyce share that farm household dependency on off-farm employment for a large set of farms is very dependent on off-farm job opportunities, with mid-size farms commonly reporting over 90% of household income is from off-farm sources, and even commercial farms receiving about a quarter of total household income from off-farm employment.
Beyond market conditions, noneconomic reasons were commonly cited as a choice to choose part-time work by the rural working poor in 2023. A combination of family and/or personal obligations and childcare access were the primary reason for part-time work reported by 14.6 percent of rural households in 2023. These findings suggest that while some rural working poor, such as young families and retirees, may indeed want to work part time, others may choose part-time work when confronted with various personal barriers that may be mitigated by remote options.
2023 US Census Data on Employment and Commuting
One option that has always been available for rural workers is to commute to jobs in nearby metro areas, and that choice may be revisited as remote work options change. Because housing in rural areas is either less expensive, affords more amenities (such as larger yards or scenic views), some of the growth in rural population noted above was likely driven by remote work allowing for more distance between home and office. One can see how these dynamics emerge in 2023 visually through the map below built with a new US Census platform which allows one to map working and commuting patterns.
These 2023 trends will be challenged in an economic landscape that is revisiting and putting new restrictions on remote work.
Rural and Remote
As Sheila Callaham highlighted in her Summer 2025 Forbes article, rural America is open to work, particularly for enterprises where remote work is an option since it “bridges” the long distances between rural communities and corporate America. And, the nonfarm income that supports the agricultural sector could come from remote work options as well. Yet, Business Insider reports that the share of job postings mentioning hybrid or remote has decreased to 7.5% from 10% in 2022. This trend disproportionately impacts rural job seekers who often struggle with financial hardship.
As employers struggle with hiring the talent they need, they overlook the existing infrastructure created during COVID that makes remote work more accessible. And, without a wider set of work opportunities, there is evidence that rural households will struggle most to achieve economic mobility since there is research indicating geographic mobility in the U.S. is at historic lows. In short, even as rural workers show a strong willingness to train, employers continue to reduce remote opportunities.
In short, part of the future of rural America, with a reliance on more off-farm work and commuting, may relay on employers openness to consider remote work as a means of access, rather than a perk and the vision to see rural workers as an undertapped supply. Allowing worker to be remote will grow and likely strengthen their applicant talent pool. And perhaps local, state and federal policymakers can nudge employers to revisit remote options where appropriate as a new economic development strategy in lieu of traditional and expensive strategies such as tax incentives to draw new employers to their area.
