Rural Economy Trends Broadly Consistent with National Numbers

The Federal Reserve Board Governor Lisa Cook recently spoke at the '2026 Investing in Rural America Conference' hosted by the Federal Reserve Bank of Richmond. She discussed the unemployment rate and inflation in rural communities, stating that they are broadly consistent with national trends.

Cook noted that there are approximately 20 million workers in rural areas, representing about one-eighth of American workers. However, these communities have a smaller share of adults participating in the labor force compared to urban areas.

The employment-to-population ratio for rural communities is significantly lower, especially among workers between 25 and 54 years old. This means that fewer people in rural areas are actively employed or seeking work relative to their population size.

Cook also pointed out that inflation in rural areas has been driven by increases in energy prices and housing costs. Energy costs can have a disproportionate impact on rural communities due to the longer distances traveled for employment and services.