Offshoring Killed Rural Economies 1-28-26

Rural U.S. counties experienced significant economic decline due to the offshoring of jobs, particularly in the manufacturing sector, which acted as a cornerstone of many local economies. The loss of these jobs, which accelerated from the late 1990s through the 2000s, led to population declines, reduced tax bases, and a lasting, structural economic crisis in many rural communities.  

Impact of Offshoring on Rural Counties

Manufacturing Decline: Between 2001 and 2015, 71% of U.S. counties saw a decline in manufacturing employment, with the most severe losses in the Eastern United States.

Job Losses and Plant Closures: Rural manufacturing, formerly a key economic driver, was hit hard as companies moved operations to countries with lower labor costs. Specific regions like the rural South saw significant distress as industries like textiles were offshored.

The "Rust Belt" Effect: The loss of manufacturing jobs caused a ripple effect, leading to the collapse of local businesses and a decline in population. For instance, towns that lost major employers saw sharp declines in population, such as in Monessen, Pennsylvania.

Higher Poverty and Lower Income: Counties heavily dependent on manufacturing suffered from high poverty rates. For example, after major job losses, some towns saw poverty rates reach 25% or higher. 

Long-Term Economic Effects

Slow Recovery: Rural counties have struggled to recover from these job losses. Six out of 10 rural counties had fewer jobs in 2019 than they did in 2000.

Employment Shift: The loss of high-wage manufacturing jobs often left behind lower-paying service-sector jobs, reducing the number of stable, middle-class opportunities in rural areas.

COVID-19 Impact: During the pandemic, rural employment dropped, and many of these areas, already hit by long-term manufacturing declines, struggled to regain their pre-pandemic levels. 

Regional and Industry Disparities

Manufacturing vs. Service/Recreation: While manufacturing-dependent counties declined, those with economies focused on recreation or government fared better in retaining or regaining jobs, especially after 2020.

Mining Areas: Rural counties dependent on mining were among the hardest hit in recent years, with a 1.6% to 2.4% drop in employment between 2019 and 2023. 

Despite these declines, some rural areas are experiencing a shift, with new investment in technology-enabled jobs and efforts to upskill workers, although these areas still face challenges in accessing digital infrastructure. 

Offshoring has significantly altered the economic landscape of rural U.S. counties, particularly those historically dependent on manufacturing. Between 2001 and 2015, approximately 71% of U.S. counties experienced a decline in manufacturing employment, with the most severe impacts concentrated in the Eastern United States and the South. 

The effects of these job losses on rural communities include:

Regional Economic Collapse: In small rural counties, the closure of a single major employer can devastate the entire regional economy. For example, the closure of the Danville River Mill in 2006—once the main employer for a century—contributed to a poverty rate of over 25% in Danville, VA.

Ripple Effects on Local Services: The loss of a manufacturing base often triggers a downward spiral, leading to the closure of local retail stores, schools, and even hospitals due to a shrinking tax base and population.

Demographic Shifts and Population Loss: Many deindustrialized rural towns have seen their populations plummet as young people leave in search of work. Monessen, PA, for instance, lost two-thirds of its population after its steel mills closed.

Social and Health Crises: Economic decline has been linked to the erosion of social institutions like community centers and unions. In some areas, the loss of manufacturing jobs has coincided with a rise in drug trade and the opioid epidemic.

Widening Job Gap: While urban manufacturing employment saw some growth (roughly 1% between 2019 and 2023), rural manufacturing-dependent counties continued to lose jobs, highlighting a persistent recovery gap between metro and non-metro areas.

While some rural counties have found new paths to prosperity through natural resource extraction (e.g., fracking booms) or recreation and tourism, these industries often remain susceptible to boom-bust cycles or create high living costs that can displace long-term residents. 

These articles examine the impact of job offshoring on specific U.S. cities and Rust Belt towns:

https://www.google.com/search?q=Rural+us+counties+suffered+when+jobs+were+offshored

Comments

Most job losses in Rural Counties were caused by offshoring manufacturing from Small Manufacturing Plants staffed by 100 family farming employees. These plants were spaced to provide an efficient, short supply chain to their customers. Rural Cities and Counties offered “Tax Holidays” to attract these companies.

Norb Leahy, Dunwoody GA Tea Party Leader