Asger Risom
The US economy is strong overall, but more than 50 million Americans in smaller communities are being left behind by uneven growth.
Strong national data suggests the US economy is in good shape.
But beneath the surface, millions of Americans in smaller communities are not seeing the benefits.
Growth with gaps
More than 50 million people live in economically distressed communities across the United States, according to Derek Kilmer of the Rockefeller Foundation, writing in Fortune.
These areas are often smaller towns and rural regions, marked by fewer job opportunities, weaker health outcomes and declining public services — despite overall economic growth.
National figures show unemployment near recent lows and strong job participation among working-age adults, but those averages hide sharp regional disparities.
A divided landscape
In roughly one-third of US counties, employment among people aged 25 to 54 falls at least five percentage points below the national average.
That gap creates a cycle of decline, with fewer jobs leading to lower tax revenues, reduced services and diminishing confidence in economic mobility.
Kilmer argues the issue is not effort, but geography — with opportunity increasingly concentrated in a small number of urban hubs.
Just over 100 counties accounted for half of all US job growth in 2020.
Pressure from AI
The divide could deepen further as artificial intelligence reshapes the labor market.
A Gallup survey found nearly one in four workers using AI believe it could eliminate their job, reflecting growing uncertainty.
Communities already struggling to attract jobs risk falling further behind as automation accelerates change.
Rethinking job policy
Kilmer argues that traditional strategies focused on attracting major employers are no longer enough.
Instead, success depends on whether local systems connect people to jobs — through training aligned with hiring needs and support for barriers like childcare and transportation.
In communities making progress, employers, workforce agencies and educators are working together to create direct pathways into jobs.
Beyond job creation
The US has millions of open roles, particularly in sectors such as healthcare and construction.
Yet many go unfilled due to skill mismatches or practical barriers that prevent people from taking them.
Effective approaches focus on alignment — ensuring training leads to employment and that workers can stay in jobs once hired.
Adapting to disruption
Kilmer calls for a shift in how the US responds to economic change.
Rather than treating job loss as a one-time event, policies must support frequent transitions as roles evolve.
AI could help workers navigate those changes, but only if systems are designed to guide them into new opportunities quickly.
A question of trust
The impact goes beyond economics.
Communities left behind by growth are losing trust in institutions, particularly where opportunities remain limited.
Kilmer argues that rebuilding that trust requires ensuring growth is more evenly shared — especially in smaller towns that have long felt excluded.
Sources: Derek Kilmer for Fortune
