While not an ideal outcome for rural inhabitants, the transition comes with drastic productivity gains. Today’s average American farmer provides food to about 155 people compared to 25.8 people in 1960.
[1] The increased output per capita enables millions to work in other industries. The impact from low rural job demand is twofold. First, the industries replacing these jobs are highly specialized and required expensive human investment. Second, rural job’s low wages and physical nature labor are unattractive. These two factors contribute to a “chicken and egg cycle.” Rural inhabitants need to invest in human capital, management namely education. However, they cannot afford this development with their current wages.
[2]
The economic shift pushes young people to cities. According to the U.S. Department of Commerce’s Bureau of 2014 Economic Analysis, “Real GDP increased in 74% of cities.”
[3] Domestically, 20 cities account for over 50% of the nation’s output.
[4] Low headcounts in rural areas and the educational requirements of the new labor market leave young adults in rural areas with few employment choices. For instance, 50% of Oregon’s jobs surround its largest city, Portland.