Paper finds that thriving rural areas need three key elements: industry, workforce, and a connected community

The report divides rural counties into five economic archetypes; McKinsey & Company map; click the image to enlarge it.

"New research published recently by McKinsey, a management consulting firm specializing in corporations, governments and other entities, identified three key elements necessary for rural communities to thrive: sectors or tradeable industries, workforce, and community and connectivity," Kristi Eaton reports for The Daily Yonder. Rural economic development usually ties into one or more of those three areas, according to the paper.

The research also noted that rural America "is not a monolith, so economic development structures will vary based on place," Eaton reports. "However, there are some overarching themes that emerged. Among those themes are big-push investment, embracing placemaking, developing tourism infrastructure, attracting and retaining small and medium-sized businesses, attracting remote workers, and increasing access to healthcare."

The report divided rural America into five community archetypes:

Americana counties, the most common type, have "slightly lower GDP and educational outcomes than urban areas. They are relatively close to major cities and often include several major employers," according to the report.

Distressed Americana counties, which tend to be in the South, have high poverty levels, low workforce participation, and low educational attainment. "Historically, these communities have been hubs for agriculture, extractive industries, and manufacturing. Their decline has mirrored the struggles in these sectors," says the report.

Rural Service Hubs are big on manufacturing and service industries such as retail and healthcare, and are often close to highways or railways. They typically serve nearby counties that are even more rural.

Resource-Rich Regions rely on oil and gas or mining, and often have high agricultural production rates too. They typically have higher-than-average household income, GDP per capita, and educational attainment.

Great Escapes counties, the least-common archetype, are home to "wealthy enclaves and tourist destinations" (think Aspen, Colorado). Average GDP, household income, and educational attainment are high in these counties, but this kind of economy often results in many low-paying service jobs.