Service Employment and Rural Community Economic Development

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Abstract
When rural community economic development strategies are concerned with expanding employment opportunities, service industries are a prime consideration since they have been the source of most employment growth since the mid-1970s. This paper addresses two interrelated questions about rural service industries. First, are there significant rural-urban differences in service industry composition? Second, what are the basic income sources associated with service employment concentration in rural areas? An analysis of 382 labor market areas in the contiguous United States indicates that rural service concentration is most pronounced in social services and that agerelated income from nonwork sources is associated with rural service concentration. The implications for rural community economic development strategies are discussed in terms of capturing more income locally and attracting additional residents.