Federal Reserve Governor Cook addressed the economic realities facing rural communities during the 2026 Investing in Rural America Conference, held in Asheville, North Carolina. Speaking to policymakers, economists, and regional leaders, Cook outlined how rural America contributes roughly 1 in 8 American workers to the national labor force while facing distinct demographic and job creation challenges under the Fed's dual mandate of maximum employment and price stability.
Labor Market Dynamics and Participation Rates in Rural Regions
Rural communities experience labor-market dynamics that mirror broader national trends in stability and low unemployment, yet face distinct structural hurdles. According to Federal Reserve data cited by Cook, rural unemployment rates track closely with national figures, showing particular resilience during the pandemic era by rising less and recovering faster. However, rural areas contend with a smaller share of adults participating in the labor force compared to urban counterparts.
This participation gap persists even among prime-age workers between 25 and 54 years old, where the employment-to-population ratio trails urban metrics by several points. Cook attributed this disparity partly to demographic shifts and lower labor force participation rates among working-age men, driven by a combination of economic and social factors. The overall pace of job creation in rural regions has lagged behind urban centers since 2019.
Systemwide Commitment and Regional Economic Integration
The 2026 conference marks the first time the Investing in Rural America event has expanded to a national scope with participation from all 12 Federal Reserve Banks and the Board of Governors. Hosted by the Federal Reserve Bank of Richmond, the expanded format highlights the central bank's focus on regional economic conditions. Cook emphasized that rural communities supply critical resources, including food, energy, and building materials, while serving as integral components of national supply chains for motor vehicles, electronics, furniture, and paper products.
Small businesses embedded within these rural industries function as vital local employers and innovators. The Richmond Fed and its partner banks organized the event to better inform policymakers about how rural residents experience local economic shifts and contribute to broader national productivity.