Division of Research & Evaluation

Appalachian Regional Commission

November 2019

INDUSTRIAL MAKE-UP OF 

THE APPALACHIAN REGION

Employment and Earnings, 2002–2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 1

Preface

This report looks at the industrial make-up of the Appalachian Region compared to the United States as 

a whole, as well as differences within the Region. Broad industrial categories are considered—15 in 

total—and for each one of these, both employment and earnings are examined. The report focuses on 

the current industrial make-up and recent changes that have taken place.

Chapter One provides a brief introduction to the Appalachian Region and the data used in this report.

Chapter Two offers an overview of total employment in the Region and how it compares over time with 

total employment in the United States. Population data are included to provide context.

Chapter Three introduces the 15 industrial categories and then examines employment data for each of 

these categories. Discussion here is focused on the 2002–2017 period.

Chapter Four examines total earnings across Appalachia, and how both overall earnings and earnings 

per employee compare with those in the United States as a whole.

Chapter Five offers a breakdown of earnings by industry. Emphasis is given to earnings per employee, 

and how these data may have changed during the 2002–2017 period.

Chapter Six offers key takeaways and a conclusion. 

This report was prepared by Logan Thomas, Division of Research & Evaluation, Appalachian Regional 

Commission.
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 2

Contents

Preface ..........................................................................................................................................................1

Chapter 1: Introduction ..............................................................................................................................11

The Appalachian Region..........................................................................................................................11

Data Source.............................................................................................................................................11

Chapter 2: Employment..............................................................................................................................13

Population and Employment ..................................................................................................................13

Employment Growth...............................................................................................................................20

Chapter 3: Industrial Make-up of Employment..........................................................................................23

Professional and Technical Services .......................................................................................................27

Health and Social Services ......................................................................................................................31

Retail Trade.............................................................................................................................................35

State and Local Government ..................................................................................................................39

Manufacturing ........................................................................................................................................43

Food, Lodging, and Entertainment .........................................................................................................47

Finance, Insurance, and Real Estate .......................................................................................................51

Wholesale Trade and Transportation .....................................................................................................55

Personal and Other Services...................................................................................................................59

Construction............................................................................................................................................63

Education and Information Services.......................................................................................................67

Farming and Forestry..............................................................................................................................71

Federal Government and Military ..........................................................................................................75

Coal, Gas, and Other Mining...................................................................................................................79

Utilities....................................................................................................................................................83

Chapter 4: Earnings.....................................................................................................................................87

Overall Earnings......................................................................................................................................87

Earnings per Employee ...........................................................................................................................91

Chapter 5: Industrial Make-up of Earnings.................................................................................................94

State and Local Government ..................................................................................................................98

Manufacturing ......................................................................................................................................101

Health and Social Services ....................................................................................................................103

Wholesale Trade and Transportation ...................................................................................................106

Professional and Technical Services .....................................................................................................109
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 3

Construction..........................................................................................................................................112

Finance, Insurance, and Real Estate .....................................................................................................115

Education and Information Services.....................................................................................................118

Retail Trade...........................................................................................................................................121

Food, Lodging, and Entertainment .......................................................................................................124

Personal and Other Services.................................................................................................................127

Federal Government and Military ........................................................................................................130

Coal, Gas, and Other Mining.................................................................................................................133

Utilities..................................................................................................................................................136

Farming and Forestry............................................................................................................................139

Chapter 6: Summary .................................................................................................................................142

Employment and Population ................................................................................................................143

Industrial Make-up and Employment Growth......................................................................................146

Earnings and Employment....................................................................................................................151

Earnings by Industry..............................................................................................................................154

Closing Remarks....................................................................................................................................156

Appendix A: Employment Change Maps, 2012–2017 ..............................................................................157

All Industries .........................................................................................................................................157

Professional and Technical Services .....................................................................................................158

Health and Social Services ....................................................................................................................159

Retail Trade...........................................................................................................................................160

State and Local Government ................................................................................................................161

Manufacturing ......................................................................................................................................162

Food, Lodging, and Entertainment .......................................................................................................163

Finance, Insurance, and Real Estate .....................................................................................................164

Wholesale Trade and Transportation ...................................................................................................165

Personal and Other Services.................................................................................................................166

Construction..........................................................................................................................................167

Education and Information Services.....................................................................................................168

Farming and Forestry............................................................................................................................169

Federal Government and Military ........................................................................................................170

Coal, Gas, and Other Mining.................................................................................................................171

Utilities..................................................................................................................................................172
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 4

Appendix B: Location Quotient Maps, 2017.............................................................................................173

Professional and Technical Services .....................................................................................................173

Health and Social Services ....................................................................................................................174

Retail Trade...........................................................................................................................................175

State and Local Government ................................................................................................................176

Manufacturing ......................................................................................................................................177

Food, Lodging, and Entertainment .......................................................................................................178

Finance, Insurance, and Real Estate .....................................................................................................179

Wholesale Trade and Transportation ...................................................................................................180

Personal and Other Services.................................................................................................................181

Construction..........................................................................................................................................182

Education and Information Services.....................................................................................................183

Farming and Forestry............................................................................................................................184

Federal Government and Military ........................................................................................................185

Coal, Gas, and Other Mining.................................................................................................................186

Utilities..................................................................................................................................................187

Appendix C: Earnings Per Employee Maps, 2017 .....................................................................................188

All Industries .........................................................................................................................................188

State and Local Government ................................................................................................................189

Manufacturing ......................................................................................................................................190

Health and Social Services ....................................................................................................................191

Wholesale Trade and Transportation ...................................................................................................192

Professional and Technical Services .....................................................................................................193

Construction..........................................................................................................................................194

Finance, Insurance, and Real Estate .....................................................................................................195

Education and Information Services.....................................................................................................196

Retail Trade...........................................................................................................................................197

Food, Lodging, and Entertainment .......................................................................................................198

Personal and Other Services.................................................................................................................199

Federal Government and Military ........................................................................................................200

Coal, Gas, and Other Mining.................................................................................................................201

Utilities..................................................................................................................................................202

Farming and Forestry............................................................................................................................203
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 5

Figures

Figure 1: Percentage of U.S. population and employment in Appalachia, 1969–2017..............................13

Figure 2: Ratio of Appalachia’s share of U.S. employment to share of U.S. population, 1969–2017 ........14

Figure 3: Ratio of Appalachia’s share of U.S. employment to share of U.S. population, 2002–2017 ........15

Figure 4: Percentage of U.S. totals in Appalachia: Population, working-age population, and jobs, 2002–

2017 ............................................................................................................................................................16

Figure 5: Percentage of U.S. totals in Appalachia: Population, working-age population, and jobs, 1969–

2017 ............................................................................................................................................................17

Figure 6: Employment to population ratios, 2002–2017............................................................................18

Figure 7: Employment to working-age population ratios, 2002–2017.......................................................19

Figure 8: Percent change in employment, all industries, 2002–2007, 2007–2012, and 2012–2017 .........20

Figure 9: Industrial shares in the “service economy,” 2002, 2007, 2012, and 2017 ..................................25

Figure 10: Industrial shares in Manufacturing, 2002, 2007, 2012, and 2017.............................................26

Figure 11: Industrial share, Professional and Technical Services, 2002–2017 ...........................................27

Figure 12: Percent change in employment, Professional and Technical Services, 2002–2007, 2007–2012, 

and 2012–2017 ...........................................................................................................................................28

Figure 13: Percentage of total employment in the Appalachian Region, Professional and Technical 

Services, 2017 .............................................................................................................................................30

Figure 14: Industrial share, Health and Social Services, 2002–2017 ..........................................................31

Figure 15: Percent change in employment, Health and Social Services, 2002–2007, 2007–2012, and 

2012–2017 ..................................................................................................................................................32

Figure 16: Percentage of total employment in the Appalachian Region, Health and Social Services, 2017

....................................................................................................................................................................34

Figure 17: Industrial share, Retail Trade, 2002–2017.................................................................................35

Figure 18: Percent change in employment, Retail Trade, 2002–2007, 2007–2012, and 2012–2017 ........36

Figure 19: Percentage of total employment in the Appalachian Region, Retail Trade, 2017 ....................38

Figure 20: Industrial share, State and Local Government, 2002–2017 ......................................................39

Figure 21: Percent change in employment, State and Local Government, 2002–2007, 2007–2012, and 

2012–2017 ..................................................................................................................................................40

Figure 22: Percentage of total employment in the Appalachian Region, State and Local Government, 

2017 ............................................................................................................................................................42

Figure 23: Industrial share, Manufacturing, 2002–2017 ............................................................................43

Figure 24: Percent change in employment, Manufacturing, 2002–2007, 2007–2012, and 2012–2017....44

Figure 25: Percentage of total employment in the Appalachian Region, Manufacturing, 2017................46

Figure 26: Industrial share, Food, Lodging, and Entertainment, 2002–2017 .............................................47

Figure 27: Percent change in employment, Food, Lodging, and Entertainment, 2002–2007, 2007–2012, 

and 2012–2017 ...........................................................................................................................................48

Figure 28: Percentage of total employment in the Appalachian Region, Food, Lodging, and 

Entertainment, 2017...................................................................................................................................50

Figure 29: Industrial share, Finance, Insurance, and Real Estate, 2002–2017 ...........................................51

Figure 30: Percent change in employment, Finance, Insurance, and Real Estate, 2002–2007, 2007–2012, 

and 2012–2017 ...........................................................................................................................................52

Figure 31: Percentage of total employment in the Appalachian Region, Finance, Insurance, and Real 

Estate, 2017 ................................................................................................................................................53
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 6

Figure 32: Industrial share, Wholesale Trade and Transportation, 2002–2017 .........................................55

Figure 33: Percent change in employment, Wholesale Trade and Transportation, 2002–2007, 2007–

2012, and 2012–2017 .................................................................................................................................56

Figure 34: Percentage of total employment in the Appalachian Region, Wholesale Trade and 

Transportation, 2017 ..................................................................................................................................58

Figure 35: Industrial share, Personal and Other Services, 2002–2017.......................................................59

Figure 36: Percent change in employment, Personal and Other Services, 2002–2007, 2007–2012, and 

2012–2017 ..................................................................................................................................................60

Figure 37: Percentage of total employment in the Appalachian Region, Personal and Other Services, 

2017 ............................................................................................................................................................62

Figure 38: Industrial share, Construction, 2002–2017................................................................................63

Figure 39: Percent change in employment, Construction, 2002–2007, 2007–2012, and 2012–2017.......64

Figure 40: Percentage of total employment in the Appalachian Region, Construction, 2017 ...................65

Figure 41: Industrial share, Education and Information Services, 2002–2017...........................................67

Figure 42: Percent change in employment, Education and Information Services, 2002–2007, 2007–2012, 

and 2012–2017 ...........................................................................................................................................68

Figure 43: Percentage of total employment in the Appalachian Region, Education and Information 

Services, 2017 .............................................................................................................................................69

Figure 44: Industrial share, Farming and Forestry, 2002–2017..................................................................71

Figure 45: Percent change in employment, Farming and Forestry, 2002–2007, 2007–2012, and 2012–

2017 ............................................................................................................................................................72

Figure 46: Percentage of total employment in the Appalachian Region, Farming and Forestry, 2017 .....73

Figure 47: Industrial share, Federal Government and Military, 2002–2017 ..............................................75

Figure 48: Percent change in employment, Federal Government and Military, 2002–2007, 2007–2012, 

and 2012–2017 ...........................................................................................................................................76

Figure 49: Percentage of total employment in the Appalachian Region, Federal Government and Military, 

2017 ............................................................................................................................................................77

Figure 50: Industrial share, Coal, Gas, and Other Mining, 2002–2017.......................................................79

Figure 51: Percent change in employment, Coal, Gas, and Other Mining, 2002–2007, 2007–2012, and 

2012–2017 ..................................................................................................................................................80

Figure 52: Percentage of total employment in the Appalachian Region, Coal, Gas, and Other Mining, 

2017 ............................................................................................................................................................81

Figure 53: Industrial share, Utilities, 2002–2017........................................................................................83

Figure 54: Percent change in employment, Utilities, 2002–2007, 2007–2012, and 2012–2017 ...............84

Figure 55: Percentage of total employment in the Appalachian Region, Utilities, 2017 ...........................85

Figure 56: Percentage of U.S. population, jobs, and earnings in Appalachia, 1969–2017.........................87

Figure 57: Ratio of Appalachia’s share of U.S. earnings to share of U.S. employment, 1969–2017 ..........88

Figure 58: Earnings per employee in Appalachia, all industries, 1969–2017 .............................................89

Figure 59: Earnings growth, all industries, 2002–2007, 2007–2012, and 2012–2017................................90

Figure 60: Percent change in earnings per employee, all industries, 2002–2007, 2007–2012, and 2012–

2017 ............................................................................................................................................................91

Figure 61: Percent change in earnings per employee, State and Local Government, 2002–2007, 2007–

2012, and 2012–2017 .................................................................................................................................98

Figure 62: Earnings per employee in Appalachia, State and Local Government, 2002–2017....................99
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 7

Figure 63: Percent change in earnings per employee, Manufacturing, 2002–2007, 2007–2012, and 

2012–2017 ................................................................................................................................................101

Figure 64: Earnings per employee in Appalachia, Manufacturing, 2002–2017........................................102

Figure 65: Percent change in earnings per employee, Health and Social Services, 2002–2007, 2007–

2012, and 2012–2017 ...............................................................................................................................104

Figure 66: Earnings per employee in Appalachia, Health and Social Services, 2002–2017......................105

Figure 67: Percent change in earnings per employee, Wholesale Trade and Transportation, 2002–2007, 

2007–2012, and 2012–2017 .....................................................................................................................107

Figure 68: Earnings per employee in Appalachia, Wholesale Trade and Transportation, 2002–2017 ....108

Figure 69: Percent change in earnings per employee, Professional and Technical Services, 2002–2007, 

2007–2012, and 2012–2017 .....................................................................................................................110

Figure 70: Earnings per employee in Appalachia, Professional and Technical Services, 2002–2017.......111

Figure 71: Percent change in earnings per employee, Construction, 2002–2007, 2007–2012, and 2012–

2017 ..........................................................................................................................................................113

Figure 72: Earnings per employee in Appalachia, Construction, 2002–2017...........................................114

Figure 73: Percent change in earnings per employee, Finance, Insurance, and Real Estate, 2002–2007, 

2007–2012, and 2012–2017 .....................................................................................................................116

Figure 74: Earnings per employee in Appalachia, Finance, Insurance, and Real Estate, 2002–2017.......117

Figure 75: Percent change in earnings per employee, Education and Information Services, 2002–2007, 

2007–2012, and 2012–2017 .....................................................................................................................119

Figure 76: Earnings per employee in Appalachia, Education and Information Services, 2002–2017 ......120

Figure 77: Percent change in earnings per employee, Retail Trade, 2002–2007, 2007–2012, and 2012–

2017 ..........................................................................................................................................................122

Figure 78: Earnings per employee in Appalachia, Retail Trade, 2002–2017 ............................................123

Figure 79: Percent change in earnings per employee, Food, Lodging, and Entertainment, 2002–2007, 

2007–2012, and 2012–2017 .....................................................................................................................125

Figure 80: Earnings per employee in Appalachia, Food, Lodging, and Entertainment, 2002–2017.........126

Figure 81: Percent change in earnings per employee, Personal and Other Services, 2002–2007, 2007–

2012, and 2012–2017 ...............................................................................................................................128

Figure 82: Earnings per employee in Appalachia, Personal and Other Services, 2002–2017 ..................129

Figure 83: Percent change in earnings per employee, Federal Government and Military, 2002–2007, 

2007–2012, and 2012–2017 .....................................................................................................................131

Figure 84: Earnings per employee in Appalachia, Federal Government and Military, 2002–2017..........132

Figure 85: Percent change in earnings per employee, Coal, Gas, and Other Mining, 2002–2007, 2007–

2012, and 2012–2017 ...............................................................................................................................134

Figure 86: Earnings per employee in Appalachia, Coal, Gas, and Other Mining, 2002–2017 ..................135

Figure 87: Percent change in earnings per employee, Utilities, 2002–2007, 2007–2012, and 2012–2017

..................................................................................................................................................................137

Figure 88: Earnings per employee in Appalachia, Utilities, 2002–2017 ...................................................138

Figure 89: Percent change in earnings per employee, Farming and Forestry, 2002–2007, 2007–2012, and 

2012–2017 ................................................................................................................................................140

Figure 90: Earnings per employee in Appalachia, Farming and Forestry, 2002–2017 .............................141

Figure 91: Ratio of Appalachia’s share of U.S. employment to share of U.S. population, 1969–2017 ....143
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 8

Figure 92: Percentage of U.S. totals in Appalachia: Population, working-age population, and jobs, 1969–

2017 ..........................................................................................................................................................144

Figure 93: Employment to working-age population ratios, 2002–2017...................................................145

Figure 94: Percent change in employment, all industries, 2002–2007, 2007–2012, and 2012–2017 .....146

Figure 95: Industrial shares in the “service economy,” 2002, 2007, 2012, and 2017 ..............................148

Figure 96: Industrial shares in Manufacturing, 2002, 2007, 2012, and 2017...........................................149

Figure 97: Percentage of U.S. population, jobs, and earnings in Appalachia, 1969–2017.......................151

Figure 98: Ratio of Appalachia’s share of U.S. earnings to share of U.S. employment, 1969–2017 ........152

Figure 99: Earnings per employee in Appalachia, all industries, 1969–2017 ...........................................152

Figure 100: Earnings growth, all industries, 2002–2007, 2007–2012, and 2012–2017 ...........................153

Figure 101: Percent change in employment, all industries, 2012 to 2017 ...............................................157

Figure 102: Percent change in employment, Professional and Technical Services, 2012 to 2017...........158

Figure 103: Percent change in employment, Health and Social Services, 2012 to 2017..........................159

Figure 104: Percent change in employment, Retail Trade, 2012 to 2017 ................................................160

Figure 105: Percent change in employment, State and Local Government, 2012 to 2017......................161

Figure 106: Percent change in employment, Manufacturing, 2012 to 2017............................................162

Figure 107: Percent change in employment, Food, Lodging, and Entertainment, 2012 to 2017.............163

Figure 108: Percent change in employment, Finance, Insurance, and Real Estate, 2012 to 2017...........164

Figure 109: Percent change in employment, Wholesale Trade and Transportation, 2012 to 2017 ........165

Figure 110: Percent change in employment, Personal and Other Services, 2012 to 2017 ......................166

Figure 111: Percent change in employment, Construction, 2012 to 2017...............................................167

Figure 112: Percent change in employment, Education and Information Services, 2012 to 2017 ..........168

Figure 113: Percent change in employment, Farming and Forestry, 2012 to 2017 .................................169

Figure 114: Percent change in employment, Federal Government and Military, 2012 to 2017..............170

Figure 115: Percent change in employment, Coal, Gas, and Other Mining, 2012 to 2017 ......................171

Figure 116: Percent change in employment, Utilities, 2012 to 2017 .......................................................172

Figure 117: Location quotient, Professional and Technical Services, 2017..............................................173

Figure 118: Location quotient, Health and Social Services, 2017.............................................................174

Figure 119: Location quotient, Retail Trade, 2017 ...................................................................................175

Figure 120: Location quotient, State and Local Government, 2017.........................................................176

Figure 121: Location quotient, Manufacturing, 2017...............................................................................177

Figure 122: Location quotient, Food, Lodging, and Entertainment, 2017................................................178

Figure 123: Location quotient, Finance, Insurance, and Real Estate, 2017..............................................179

Figure 124: Location quotient, Wholesale Trade and Transportation, 2017............................................180

Figure 125: Location quotient, Personal and Other Services, 2017 .........................................................181

Figure 126: Location quotient, Construction, 2017..................................................................................182

Figure 127: Location quotient, Education and Information Services, 2017 .............................................183

Figure 128: Location quotient, Farming and Forestry, 2017 ....................................................................184

Figure 129: Location quotient, Federal Government and Military, 2017.................................................185

Figure 130: Location quotient, Coal, Gas, and Other Mining, 2017 .........................................................186

Figure 131: Location quotient, Utilities, 2017 ..........................................................................................187

Figure 132: Earnings per employee, all industries, 2017..........................................................................188

Figure 133: Earnings per employee, State and Local Government, 2017 ................................................189

Figure 134: Earnings per employee, Manufacturing, 2017 ......................................................................190
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 9

Figure 135: Earnings per employee, Health and Social Services, 2017 ....................................................191

Figure 136: Earnings per employee, Wholesale Trade and Transportation, 2017 ...................................192

Figure 137: Earnings per employee, Professional and Technical Services, 2017 .....................................193

Figure 138: Earnings per employee, Construction, 2017..........................................................................194

Figure 139: Earnings per employee, Finance, Insurance, and Real Estate, 2017 .....................................195

Figure 140: Earnings per employee, Education and Information Services, 2017.....................................196

Figure 141: Earnings per employee, Retail Trade, 2017...........................................................................197

Figure 142: Earnings per employee, Food, Lodging, and Entertainment, 2017 .......................................198

Figure 143: Earnings per employee, Personal and Other Services, 2017.................................................199

Figure 144: Earnings per employee, Federal Government and Military, All Industries, 2017..................200

Figure 145: Earnings per employee, Coal, Gas, and Other Mining, 2017.................................................201

Figure 146: Earnings per employee, Utilities, 2017..................................................................................202

Figure 147: Earnings per employee, Farming and Forestry, 2017............................................................203

Tables

Table 1: Employment and percent change, all industries...........................................................................22

Table 2: Industries and NAICS codes...........................................................................................................23

Table 3: Industrial shares, Appalachia and the United States, 2017 ..........................................................24

Table 4: Industrial shares in Appalachia, 2002, 2007, 2012, and 2017 ......................................................24

Table 5: Ranking of industrial shares in Appalachia, 2002, 2007, 2012, and 2017.....................................26

Table 6: Employment and ind. shares, Professional and Technical Services, 2002, 2007, 2012, and 2017

....................................................................................................................................................................29

Table 7: Employment and industrial shares, Health and Social Services, 2002, 2007, 2012, and 2017.....33

Table 8: Employment and industrial shares, Retail Trade, 2002, 2007, 2012, and 2017 ...........................37

Table 9: Employment and industrial shares, State and Local Government, 2002, 2007, 2012, and 2017.41

Table 10: Employment and industrial shares, Manufacturing, 2002, 2007, 2012, and 2017.....................45

Table 11: Employment and ind. shares, Food, Lodging, and Entertainment, 2002, 2007, 2012, and 2017

....................................................................................................................................................................49

Table 12: Employment and ind. shares, Finance, Insurance, Real Estate, 2002, 2007, 2012, and 2017....53

Table 13: Employment and ind. shares, Wholesale Trade and Transportation, 2002, 2007, 2012, 2017..57

Table 14: Employment and industrial shares, Personal and Other Services, 2002, 2007, 2012, and 201761

Table 15: Employment and industrial shares, Construction, 2002, 2007, 2012, and 2017........................65

Table 16: Employment and ind. shares, Education Information Services, 2002, 2007, 2012, and 2017 ...69

Table 17: Employment and industrial shares, Farming and Forestry, 2002, 2007, 2012, and 2017 ..........73

Table 18: Employment and ind. shares, Federal Government and Military, 2002, 2007, 2012, and 2017 77

Table 19: Employment and industrial shares, Coal, Gas, and Other Mining, 2002, 2007, 2012, and 201781

Table 20: Employment and industrial shares, Utilities, 2002, 2007, 2012, and 2017 ................................85

Table 21: Earnings and employment growth, 2002–2007, 2007–2012, and 2012–2017...........................92

Table 22: Earnings per employee and percent change, all industries, 2002–2017....................................93

Table 23: Earnings per industry and industrial shares, 2017......................................................................94

Table 24: Share of total earnings by industry in Appalachia, 2002, 2007, 2012, and 2017 .......................95

Table 25: Shares of total earnings and employment by industry in Appalachia, 2002, 2007, 2012, 2017 96

Table 26: Earnings per employee in Appalachia and the United States, 2017...........................................97

Table 27: Earnings per employee and percent change, State and Local Government, 2002–2017.........100
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 10

Table 28: Earnings per employee and percent change, Manufacturing, 2002–2017...............................103

Table 29: Earnings per employee and percent change, Health and Social Services, 2002–2017.............106

Table 30: Earnings per employee and percent change, Wholesale Trade, Transportation, 2002–2017 .109

Table 31: Earnings per employee and percent change, Professional and Technical Services, 2002–2017

..................................................................................................................................................................112

Table 32: Earnings per employee and percent change, Construction, 2002–2017..................................115

Table 33: Earnings per employee and percent change, Finance, Insurance, and Real Estate, 2002–2017

..................................................................................................................................................................118

Table 34: Earnings per employee and percent change, Education and Information Services, 2002–2017

..................................................................................................................................................................121

Table 35: Earnings per employee and percent change, Retail Trade, 2002–2017 ...................................124

Table 36: Earnings per employee and percent change, Food, Lodging, and Entertainment, 2002–2017127

Table 37: Earnings per employee and percent change, Personal and Other Services, 2002–2017 .........130

Table 38: Earnings per employee and percent change, Federal Government and Military, 2002–2017.133

Table 39: Earnings per employee and percent change, Coal, Gas, and Other Mining, 2002–2017 .........136

Table 40: Earnings per employee and percent change, Utilities, 2002–2017 ..........................................139

Table 41: Earnings per employee and percent change, Farming and Forestry, 2002–2017 ....................142

Table 42: Industrial shares, Appalachia and the United States, 2017 ......................................................147

Table 43: Industrial shares in Appalachia, 2002, 2007, 2012, 2017 .........................................................150

Table 44: Ranking of industrial shares in Appalachia, 2002, 2007, 2012, 2017........................................150

Table 45: Earnings per industry and industrial shares, 2017....................................................................154

Table 46: Shares of total earnings and employment by industry in Appalachia, 2002, 2007, 2012, 2017

..................................................................................................................................................................155

Table 47: Earnings per employee in Appalachia and the United States, 2017.........................................156
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 11

Chapter 1: Introduction

The Appalachian Region

The Appalachian Region, as defined in the Appalachian Regional Commission’s authorizing legislation, is 

a 205,000-square-mile region that follows the spine of the Appalachian Mountains from southern New 

York to northern Mississippi. It includes all of West Virginia and parts of 12 other states: Alabama, 

Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, 

Tennessee, and Virginia. Forty-two percent of the Region’s population is rural compared with 20 percent 

of the national population.

An act of Congress established the Appalachian Regional Commission (ARC) in 1965 to address the 

Region’s lack of socioeconomic development compared to the United States as a whole. The stated 

mission of ARC is to help Appalachia “achieve socioeconomic parity with the nation.” The Region has 

come a long way in the past 54 years; for example, its poverty rate, which was 31 percent in 1960, now 

sits at 16.3 percent, according to data from the 2013–2017 American Community Survey (ACS).

However, socioeconomic performance in Appalachia still lags when compared to national figures.

A recent report sponsored by the Commission, The Appalachian Region: A Data Overview from the 

2013–2017 American Community Survey, looked at a wide range of socioeconomic data from the 2013–

2017 ACS and compared performance in the Region to that in the nation as a whole. For the majority of 

indicators, Appalachia remained well behind the United States overall. For example, though high school 

graduation rates in the Region matched those in the country overall, a much smaller percentage of the 

population obtained a bachelor’s degree or higher. Median household income was lower, and the 

poverty rate—while much improved since 1960—remained higher in the Region than in the country 

overall. And though the current unemployment rate is low and comparable to the national figure, labor 

force participation remains much lower in the Region.

This is all to say that the Appalachian Region, while making great strides in the last 50 years, still

generally lags behind the United States in socioeconomic development. The discussion that follows does 

not attempt to draw correlations between the Region’s industrial make-up and socioeconomic issues, 

nor does it claim to be prescriptive in any way (for example, by stating that a specific industry may 

improve the Region’s socioeconomic well-being). Rather, what follows is a descriptive analysis of the 

economic make-up of the Region—of both employment and earnings—with emphasis given to how this 

may have changed over recent years.

Data Source

All data used in this report, unless otherwise noted, come from the Woods & Poole 2019 Complete 

Economic and Demographic Data Source (CEDDS), which includes historical data from 1969 to 2017 for 

each county in the United States. Underlying data for employment and earnings come primarily from 

the Bureau of Economic Analysis (BEA); as such, BEA’s county and county-level equivalents are used in 

the dataset. 

Employment counts include all full- and part-time jobs by place of work. These include wage and salary 

workers, proprietors, private household employees, and miscellaneous workers. Since these data are 

based on an establishment survey (i.e., a survey of business establishments, government agencies, and 

all other entities where people may be employed), employment is counted at place of work, as opposed 

to place of residence. Naturally, this affects the way we look at the data presented here; we are
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 12

examining employment in the Region, which is different from the employment held by the people living 

in the Region. Certainly, there is a great deal of overlap—people living and working in the same 

counties—but it is worth nothing that, according to the ARC report examining 2013–2017 ACS data, 31.7 

percent of Appalachian residents worked outside of the county they live in, which was slightly higher 

than the number for the United States as a whole (27.6 percent). Additionally, employment is classified 

based on the primary activity of an establishment, meaning that all employees are counted in the same 

industry, regardless of job duties. For example, an administrative assistant for a timber company is

counted as a forestry worker.

Earnings data follows the same general guidelines as employment, with all data counted at the place of 

work, not the place of residence. Earnings include wages and salaries, other labor income, and 

proprietors’ income. Also included are personal contributions for social insurance.
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 13

Chapter 2: Employment

Population and Employment

As is the case for any region in the United States, Appalachia is home to only a fraction of the country’s 

population—and only a fraction of the jobs, as well. If we were to consider any region from a macro 

level, especially one as large as Appalachia, we would expect to see these fractions be relatively close to 

one another. For example, if 10 percent of the U.S. population lives in Appalachia, one might reasonably

expect to find 10 percent of U.S. jobs in the Region, as well. While this may be an overly simplistic view 

of the economy of a region, it allows for an easy-to-understand—yet still meaningful—analysis of a 

region’s economy.

Figure 1: Percentage of U.S. population and employment in Appalachia, 1969–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

In Figure 1, we see the percentage of the United States’ total population and employment found in 

Appalachia from 1969 to 2017. As can be seen, the Region’s share of both have declined over the past 

half-century; in terms of population, from 9.6 percent in 1969 to 7.9 percent in 2017, and in terms of 

employment, from 8.5 percent to 6.8 percent over the same period. Also important to note is the gap 

between the two, which can be interpreted to indicate that there are—and have been—fewer jobs

available per person in Appalachia than elsewhere in the country.

To examine this gap with a little more nuance, considering the following ratio:

AAAAAAAAAAAAAAhii ’ss ssh aaaa oooo UU. SS. ee eeee eeee / AAAAAAAAAAAAAAhii ’ss ssh aaaa oooo UU. SS. pp

In 1969, for example, this ratio would be 0.89, with the calculation as follows:

8.51 / 9.58 = 0.89

9.6%

8.5% 7.9%

6.8%

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

1969 1975 1981 1987 1993 1999 2005 2011 2017

Population Jobs
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 14

Figure 2 shows how this ratio has changed over time. A value of 1.0 would indicate that the Region’s 

shares of U.S. employment and population are equal. However, the highest ratio Appalachia has ever 

achieved was 0.90 in 1995. The lowest was 0.84 in 1983.

Figure 2: Ratio of Appalachia’s share of U.S. employment to share of U.S. population, 1969–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

1969, 0.89

1983, 0.84

1995, 0.90

2017, 0.87

0.80

0.85

0.90

0.95

1.00

1969 1975 1981 1987 1993 1999 2005 2011 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 15

By limiting the period to 2002–2017, we are better able to examine recent changes, including those that 

took place prior to, during, and just after the Great Recession (December 2007–June 2009, according to 

the National Bureau of Economic Research). Using the same scale along the y-axis as that in Figure 2, 

Figure 3 shows that changes have been much subtler over the past 15 years. However, the trendline has 

a slight downward slope.

Figure 3: Ratio of Appalachia’s share of U.S. employment to share of U.S. population, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

0.893

0.881

0.889

0.870

0.80

0.85

0.90

0.95

1.00

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 16

Figure 4 introduces an additional population variable: population ages 15 to 64, which represents the 

working-age population. While Appalachia’s share of total U.S. population and total working-age U.S.

population were nearly identical in 2002, the two have diverged over the past 15 years.

Figure 4: Percentage of U.S. totals in Appalachia: Population, working-age population, and jobs, 

2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

8.3%

7.9%

8.3%

7.7%

7.4%

6.8% 6.8%

7.0%

7.2%

7.4%

7.6%

7.8%

8.0%

8.2%

8.4%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Population Population, ages 15 to 64 Jobs
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 17

Figure 5 looks at the data again from a more historical perspective, including data back to 1969. While 

there was some separation between Appalachia’s share of the overall population and working-age 

population—particularly during the late 1970s and early 1980s—for much of the period, the two 

seemed to follow each other quite closely. What this indicates is that the Region has an older 

population, on average, than the United States as a whole. This aligns with data from the ARC report 

examining 2013–2017 ACS data, in which the percent of the population age 65 and over was higher in 

Appalachia (17.9 percent) than in the United States as a whole (15.6 percent). In addition, the median 

age was 41 years in Appalachia, and 38 in the United States. 1

Figure 5: Percentage of U.S. totals in Appalachia: Population, working-age population, and 

employment, 1969–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

 1 Appalachian Regional Commission. “The Appalachian Region: A Data Overview from the 2013–2017 American 

Community Survey.” Table 2.1. 

9.6%

7.9%

9.5%

7.7%

8.5%

6.8%

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

1969 1975 1981 1987 1993 1999 2005 2011 2017

Population Population, ages 15 to 64 Jobs
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 18

Another way of examining the data is with employment-to-population ratios, a measure calculated by 

simply dividing total employment by population:

EE pp = EE / pp

Figure 6 charts these ratios from 2002 to 2017 for both Appalachia and the United States as a whole.

Figure 6: Employment to population ratios, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

0.57

0.60

0.56

0.60

0.51

0.53

0.50

0.52

0.40

0.45

0.50

0.55

0.60

0.65

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

United States Appalachia
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 19

As expected, given the discussion above related to Appalachia’s share of total U.S. employment and 

population, the Region has a consistently lower employment-to-population ratio than the country as a 

whole. A similar picture appears when considering only the working-age population, as seen in Figure 7.

Figure 7: Employment to working-age population ratios, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

0.86

0.89

0.83

0.92

0.77

0.79

0.75

0.81

0.70

0.75

0.80

0.85

0.90

0.95

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

United States Appalachia
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 20

Employment Growth

Since 2002, the Region has generally followed the national trend when it comes to periods of 

employment growth and decline. However, the periods of growth have not been quite as strong, and 

the declines have been steeper. In this section and throughout the rest of this report, we will examine

changes across the following three time periods:

• 2002–2007: Preceding the Great Recession and marked by growth in total employment. 

• 2007–2012: Includes the Great Recession, as well as the beginning of growth that took place 

following it (many economic variables bottomed out in 2010).

• 2012–2017: The most recent period, marked largely by growth.

Figure 8 shows the changes in total employment for each of these three time periods, for both 

Appalachia and the United States as a whole. As mentioned previously, Appalachia performed worse 

than the country overall during each of the three time periods: 

• From 2002 to 2007, total employment growth in Appalachia was approximately two percentage 

points less than in the United States.

• From 2007 to 2012, employment declined approximately two percentage points more than it did 

in the nation as a whole.

• From 2012 to 2017, the Region experienced growth at only half the rate of the country overall.

Figure 8: Percent change in employment, all industries, 2002–2007, 2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

8.8%

-0.3%

9.6%

6.8%

-2.3%

4.7%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 21

Table 1 includes employment numbers as well as percent changes for a wide variety of geographies, 

including:

• Appalachian subregions

• Metro designation of counties in Appalachia

• Appalachian, non-Appalachian, and overall state values for the Region’s 13 states

Several noticeable trends emerge when we consider the changes based on subregion and metro 

designation. 

First, among the subregions, in terms of employment growth, the South Central and Southern 

subregions are generally the best-performing. Though both subregions experienced large declines 

during the 2007–2012 period, from 2012 to 2017 they saw high employment growth, at 6.6 percent and 

10.4 percent, respectively. Meanwhile, the North Central and Central subregions experienced declines in 

total employment over the most recent time period, a span during which the United States as a whole

experienced employment growth of 9.6 percent.

Second, when we consider Appalachian counties by metro designation, we see a clear, straightforward

trend: Metropolitan counties performed better in terms of employment growth than nonmetro and 

rural areas. This statement generally holds true across time, with large metro counties in the Region 

experiencing the highest employment growth in each of the three time periods considered.

A third trend worth noting is the disparity in performance between the Appalachian and nonAppalachian portions of states. In 9 of the 12 states in the Region with both Appalachian and nonAppalachian portions (West Virginia is entirely within Appalachia), the Appalachian portions lagged

behind the non-Appalachian portions in terms of employment growth from 2012 to 2017. In fact, in

three states—Kentucky, New York, and Virginia—the Appalachian portions experienced declines in 

employment as the non-Appalachian portions enjoyed growth. The three states with better-performing 

Appalachian portions were Alabama, Georgia, and South Carolina.
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 22

Table 1: Employment and percent change, all industries

Total Employment Employment (thousands) Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States 165,095 179,544 178,980 196,132 8.8 -0.3 9.6

Appalachian Region 12,276 13,116 12,816 13,420 6.8 -2.3 4.7

Non-Appalachian United States 152,819 166,428 166,164 182,712 8.9 -0.2 10.0

Subregions

Northern Appalachia 4,416 4,539 4,496 4,552 2.8 -0.9 1.2

North Central Appalachia 1,082 1,141 1,137 1,135 5.5 -0.4 -0.2

Central Appalachia 764 789 773 750 3.4 -2.1 -2.9

South Central Appalachia 2,424 2,603 2,487 2,651 7.4 -4.5 6.6

Southern Appalachia 3,590 4,043 3,923 4,333 12.6 -3.0 10.4

County Types

Large metros (pop. 1 million +) 2,849 3,158 3,139 3,398 10.9 -0.6 8.3

Small metros (pop. <1 million) 5,468 5,852 5,716 5,993 7.0 -2.3 4.8

Nonmetro, adjacent to large metros 1,016 1,056 1,012 1,038 3.9 -4.2 2.6

Nonmetro, adjacent to small metros 1,778 1,850 1,772 1,814 4.1 -4.2 2.4

Rural (nonmetro, not adj. to a metro) 1,166 1,199 1,176 1,177 2.9 -1.9 0.0

Alabama 2,365 2,604 2,504 2,652 10.1 -3.9 5.9

Appalachian Alabama 1,525 1,671 1,609 1,707 9.6 -3.7 6.1

Non-Appalachian Alabama 840 933 895 945 11.1 -4.1 5.6

Georgia 4,858 5,491 5,385 6,084 13.0 -1.9 13.0

Appalachian Georgia 1,158 1,411 1,357 1,572 21.8 -3.8 15.8

Non-Appalachian Georgia 3,700 4,080 4,028 4,512 10.3 -1.3 12.0

Kentucky 2,263 2,415 2,389 2,521 6.7 -1.1 5.5

Appalachian Kentucky 484 498 490 485 3.0 -1.6 -1.1

Non-Appalachian Kentucky 1,780 1,917 1,899 2,036 7.7 -0.9 7.2

Maryland 3,157 3,441 3,439 3,697 9.0 -0.1 7.5

Appalachian Maryland 132 140 139 140 6.1 -0.6 0.8

Non-Appalachian Maryland 3,024 3,300 3,300 3,557 9.1 0.0 7.8

Mississippi 1,455 1,539 1,520 1,591 5.8 -1.2 4.7

Appalachian Mississippi 301 306 310 322 1.7 1.1 3.9

Non-Appalachian Mississippi 1,154 1,233 1,210 1,269 6.8 -1.8 4.9

New York 10,348 11,083 11,433 12,436 7.1 3.2 8.8

Appalachian New York 552 565 542 536 2.3 -4.0 -1.1

Non-Appalachian New York 9,796 10,518 10,891 11,900 7.4 3.5 9.3

North Carolina 4,842 5,431 5,356 5,920 12.2 -1.4 10.5

Appalachian North Carolina 857 922 871 936 7.5 -5.5 7.5

Non-Appalachian North Carolina 3,984 4,509 4,486 4,984 13.2 -0.5 11.1

Ohio 6,640 6,795 6,606 6,995 2.3 -2.8 5.9

Appalachian Ohio 923 930 899 918 0.8 -3.4 2.1

Non-Appalachian Ohio 5,717 5,865 5,707 6,077 2.6 -2.7 6.5

Pennsylvania 6,887 7,265 7,285 7,685 5.5 0.3 5.5

Appalachian Pennsylvania 3,082 3,194 3,199 3,255 3.6 0.1 1.7

Non-Appalachian Pennsylvania 3,805 4,071 4,086 4,431 7.0 0.4 8.4

South Carolina 2,248 2,482 2,453 2,749 10.4 -1.2 12.1

Appalachian South Carolina 606 655 648 732 8.0 -1.1 13.0

Non-Appalachian South Carolina 1,642 1,827 1,805 2,017 11.3 -1.2 11.7

Tennessee 3,409 3,702 3,635 4,004 8.6 -1.8 10.1

Appalachian Tennessee 1,417 1,528 1,474 1,572 7.9 -3.6 6.7

Non-Appalachian Tennessee 1,992 2,174 2,161 2,432 9.1 -0.6 12.5

Virginia 4,422 4,869 4,857 5,200 10.1 -0.3 7.1

Appalachian Virginia 367 379 360 357 3.3 -5.0 -0.8

Non-Appalachian Virginia 4,055 4,490 4,497 4,843 10.7 0.1 7.7

West Virginia (entire state) 871 916 919 889 5.1 0.4 -3.3

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 23

Chapter 3: Industrial Make-up of Employment

This chapter explores employment by industry throughout Appalachia, how the Region’s industrial 

make-up has changed over time, and how it compares to the United States as a whole. Fifteen industries 

are included in this report. Table 2 lists these industries, along with the corresponding two-digit North 

American Industry Classification System (NAICS) codes for each.

Table 2: Industries and NAICS codes

Industry NAICS Codes

Farming, Forestry 11

Coal, Gas, Other Mining 21

Utilities 22

Construction 23

Manufacturing 31-33

Wholesale Trade, Transportation 42, 48, 49

Retail Trade 44, 45

Finance, Insurance, Real Estate 52, 53

Professional, Technical Services 54-56

Education, Information Services 51, 61

Health, Social Services 62

Food, Lodging, Entertainment 71, 72

Federal Government, Military 92

State and Local Government 92

Personal, Other Services 81

Table 3 shows us the industrial shares in 2017 for both the Appalachian Region and the United States as 

a whole. The industrial share is simply the percentage of total employment belonging to a specific 

industry for any given geography:

II II ssh aaaa = EE ii ii ÷ TT ee eeee eeee

The two industries with the largest shares were the same for both the Region and the country as a 

whole: Professional and Technical Services (12.1 percent share in Appalachia, 14.5 percent in the U.S.) 

and Health and Social Services (11.6 percent in Appalachia, 11.3 percent in the U.S.).

If we consider only the Appalachian Region, in 2017, the industries typically associated with the Region 

did not make up as large a share as many might expect. Manufacturing (1.34 million jobs, 10 percent), 

Farming and Forestry (325,000 jobs, 2.4 percent), and Coal, Gas, and Other Mining (140,000 jobs, 1

percent) combined to make up just 13.4 percent of total employment in the Region. These same 

industries at the national level constituted 9.4 percent of total employment.

Meanwhile, the industries associated with the “service economy” made up a smaller percentage of 

Appalachia’s total employment than they did in the United States overall. Professional and Technical 

Services (1.62 million jobs, 12.1 percent); Health and Social Services (1.56 million jobs, 11.6 percent); 

Finance, Insurance, and Real Estate (1.04 million jobs, 7.8 percent); and Education and Information 

Services (432,000 jobs, 3.2 percent) combined to make up 34.7 percent of total employment. These 

same four industries made up 39.9 percent of the nation’s total employment.
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 24

Table 3: Industrial shares, Appalachia and the United States, 2017

Employment (thousands) and 

Industrial Shares, 2017

Appalachian Region United States

Employment Ind. Share (%) Employment Ind. Share (%)

Professional, Technical Services 1,619 12.1 28,479 14.5

Health, Social Services 1,562 11.6 22,199 11.3

Retail Trade 1,493 11.1 19,222 9.8

State and Local Government 1,488 11.1 19,619 10.0

Manufacturing 1,342 10.0 13,307 6.8

Food, Lodging, Entertainment 1,240 9.2 19,155 9.8

Finance, Insurance, Real Estate 1,040 7.8 19,616 10.0

Wholesale Trade, Transportation 874 6.5 14,148 7.2

Personal, Other Services 793 5.9 11,170 5.7

Construction 775 5.8 10,636 5.4

Education, Information Services 432 3.2 8,075 4.1

Farming, Forestry 325 2.4 3,552 1.8

Federal Government, Military 241 1.8 4,786 2.4

Coal, Gas, Other Mining 140 1.0 1,505 0.8

Utilities 57 0.4 664 0.3

Total Employment 13,420 100 196,132 100

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 4 shows how Appalachia’s industrial shares have changed over time. For the majority of industries, 

shares of total employment remained steady between 2002 and 2017. However, a trend does appear if 

we consider the four service sector industries noted previously; in 2017, these industries made up 34.7 

percent of the Region’s total employment, whereas just 15 years prior, in 2002, they constituted 29.2 

percent. 

Table 4: Industrial shares (%) in Appalachia, 2002, 2007, 2012, and 2017

2002 2007 2012 2017

Professional, Technical Services 9.9 11.1 11.8 12.1

Health, Social Services 9.9 10.6 11.6 11.6

Retail Trade 12.3 11.8 11.4 11.1

State and Local Government 11.7 11.5 11.7 11.1

Manufacturing 13.8 11.5 9.9 10.0

Food, Lodging, Entertainment 7.9 8.3 8.7 9.2

Finance, Insurance, Real Estate 6.1 6.9 7.5 7.8

Wholesale Trade, Transportation 6.5 6.6 6.4 6.5

Personal, Other Services 6.0 5.8 6.0 5.9

Construction 6.3 6.8 5.6 5.8

Education, Information Services 3.3 3.2 3.3 3.2

Farming, Forestry 2.9 2.6 2.5 2.4

Federal Government, Military 2.1 1.9 2.0 1.8

Coal, Gas, Other Mining 0.8 0.9 1.3 1.0

Utilities 0.5 0.4 0.4 0.4

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 25

As we can see in Figure 9, in 2002 the four industries associated with a service economy made up 35 

percent of total employment in the United States as a whole, compared to 29.2 percent for Appalachia. 

Over the years, however, the gap between the Region and the country overall has shrunk in terms of the 

share of total employment involved with the service economy.

Figure 9: Industrial shares in the service economy, 2002, 2007, 2012, and 2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Considering again the data in Table 4, another trend worth noting is the decline of manufacturing 

employment from 2002 to 2012, when it dropped from 13.8 percent of total Appalachian employment 

to 9.9 percent. However, the share of employment in the industry rose slightly between 2012 and 2017, 

to an even 10 percent in the most recent year of data. As seen in Figure 10, the regional and national 

trends in manufacturing appear to be the same. In terms of the sheer number of jobs lost in the 

industry, from 2002 to 2017, the United States lost 2.4 million jobs in the manufacturing sector, a 

decrease of 15 percent. Appalachia over the same period of time experienced a more pronounced drop 

in the industry, losing nearly 350,000 manufacturing jobs—a decline of 21 percent.

35.0

37.2

39.4 40.0

29.2

31.8

34.1 34.7

0

5

10

15

20

25

30

35

40

45

2002 2007 2012 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 26

Figure 10: Industrial shares in Manufacturing, 2002, 2007, 2012, and 2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Another way of looking at the industrial make-up of the Region involves comparing the “ranks” of each 

industry. These ranks represent the ordering of the 15 industries for a given year, in terms of their share 

of total employment. The chief advantage of considering the industrial make-up of the Region in this 

manner is its simplicity; it allows us to more easily spot trends in how employment in the industries—

relative to the others—has changed over the years. Table 5 displays these ranks for the Appalachian 

Region in 2002, 2007, 2012, and 2017.

Table 5: Ranking of industrial shares in Appalachia, 2002, 2007, 2012, and 2017

2002 2007 2012 2017

Professional, Technical Services 5 4 1 1

Health, Social Services 4 5 3 2

Retail Trade 2 1 4 3

State and Local Government 3 2 2 4

Manufacturing 1 3 5 5

Food, Lodging, Entertainment 6 6 6 6

Finance, Insurance, Real Estate 9 7 7 7

Wholesale Trade, Transportation 7 9 8 8

Personal, Other Services 10 10 9 9

Construction 8 8 10 10

Education, Information Services 11 11 11 11

Farming, Forestry 12 12 12 12

Federal Government, Military 13 13 13 13

Coal, Gas, Other Mining 14 14 14 14

Utilities 15 15 15 15

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

9.5

8.1

7.0 6.8

13.8

11.5

9.9 10.0

0

2

4

6

8

10

12

14

16

2002 2007 2012 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 27

As we would expect, manufacturing’s rank fell sharply at the same time the service economy industries 

saw relative gains. For the majority of industries, however, their ranks remained stable over the years.

The sections that follow will explore each of the 15 industrial categories in greater detail. Descriptions of 

each industry will be followed by analysis of employment trends in the Region, with consideration given 

to both time and geography. The ordering of industries is based on industrial shares for the Appalachian 

Region in 2017, starting with the largest.

Professional and Technical Services

This industrial category includes any sort of establishment that provides highly specialized professional 

activities such as accounting, computer services, consulting, and legal advice. Also included are a wide 

range of administrative activities, such as clerical services and call centers, and even janitorial and 

landscaping services.

As seen in Figure 11, the Region’s industrial share in this industry has been consistently smaller than that 

of the United States as a whole. However, the gap appears to have decreased some since 2002, when 

the industrial share for the Region was 9.9 percent, compared with 13.1 percent at the national level. In 

2017, this was up to 12.1 percent for the Region, compared with 14.5 percent for the United States

overall.

Figure 11: Industrial share, Professional and Technical Services, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

13.1%

14.5%

9.9%

12.1%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 28

In terms of growth, in Figure 12 we see that during both the 2002–2007 and 2007–2012 periods, 

employment in the industry grew at a faster pace in Appalachia than in the United States overall. 

However, during the most recent five-year period, from 2012 to 2017, growth in the industry’s 

employment was smaller in the Region (7.1 percent) than in the country as a whole (12 percent).

Figure 12: Percent change in employment, Professional and Technical Services, 2002–2007, 2007–

2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

As seen in Table 6, the most noticeable variation within the Region, as is the case with so many 

industries, correlates with the metro designations of the counties. In Appalachia’s large metro areas, the 

Professional and Technical Services share was 15.5 percent of total employment in 2017, much higher 

than the figures in nonmetro and rural areas, which ranged from 7.8 to 9 percent across the three 

designations.

Across the Region’s 13 states, the non-Appalachian portions tended to have higher industrial shares in 

this category, with Alabama and South Carolina being the two exceptions. Appalachian Georgia (14.7 

percent) had the largest share among the Appalachian portions of states, which helped make Southern 

Appalachia (14.1 percent) the highest among the five subregions. Virginia had the highest share for a 

state overall (18.7 percent), though the difference between the Appalachian (9.7 percent) and nonAppalachian portions (18.8 percent) was large.

Figure 13 then displays the county-level industrial shares throughout the Region.

15.5%

1.9%

12.0%

19.2%

3.9%

7.1%

0%

5%

10%

15%

20%

25%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 29

Table 6: Employment and ind. shares, Professional and Technical Services, 2002, 2007, 2012, and 2017

Professional, Technical Services Employment (thousands) Industrial Share

2002 2007 2012 2017 2002 2007 2012 2017

United States 21,594 24,944 25,425 28,479 13.1 13.9 14.2 14.5

Appalachian Region 1,220 1,455 1,512 1,619 9.9 11.1 11.8 12.1

Non-Appalachian U.S. 20,374 23,489 23,913 26,860 13.3 14.1 14.4 14.7

Subregions

Northern Appalachia 420 474 491 505 9.5 10.4 10.9 11.1

North Central Appalachia 91 101 105 110 8.4 8.9 9.2 9.7

Central Appalachia 55 64 69 68 7.2 8.1 8.9 9.1

South Central Appalachia 242 283 295 323 10.0 10.9 11.8 12.2

Southern Appalachia 412 533 552 613 11.5 13.2 14.1 14.1

County Types

Large Metros (pop. 1 million +) 383 463 479 528 13.5 14.7 15.3 15.5

Small Metros (pop. <1 million) 572 684 703 755 10.5 11.7 12.3 12.6

Nonmetro, Adjacent to Large Metros 74 85 89 93 7.3 8.0 8.8 9.0

Nonmetro, Adjacent to Small Metros 115 134 141 142 6.5 7.2 8.0 7.8

Rural (nonmetro, not adj. to a metro) 75 89 98 100 6.4 7.4 8.4 8.5

Alabama 254 314 321 347 10.8 12.1 12.8 13.1

Appalachian Alabama 173 214 219 236 11.4 12.8 13.6 13.8

Non-Appalachian Alabama 81 100 103 111 9.6 10.7 11.5 11.7

Georgia 668 808 837 970 13.8 14.7 15.5 15.9

Appalachian Georgia 145 198 202 232 12.5 14.1 14.9 14.7

Non-Appalachian Georgia 523 610 635 738 14.1 14.9 15.8 16.4

Kentucky 212 257 266 289 9.4 10.6 11.1 11.5

Appalachian Kentucky 33 39 42 42 6.8 7.8 8.6 8.7

Non-Appalachian Kentucky 180 218 224 246 10.1 11.4 11.8 12.1

Maryland 487 563 577 625 15.4 16.4 16.8 16.9

Appalachian Maryland 10 12 12 13 7.4 8.4 8.9 9.1

Non-Appalachian Maryland 477 551 565 613 15.8 16.7 17.1 17.2

Mississippi 116 144 155 170 8.0 9.4 10.2 10.7

Appalachian Mississippi 21 25 29 30 6.9 8.0 9.5 9.5

Non-Appalachian Mississippi 96 120 125 139 8.3 9.7 10.4 11.0

New York 1,396 1,552 1,622 1,808 13.5 14.0 14.2 14.5

Appalachian New York 47 49 48 47 8.5 8.8 8.8 8.7

Non-Appalachian New York 1,349 1,503 1,574 1,761 13.8 14.3 14.5 14.8

North Carolina 573 709 755 857 11.8 13.1 14.1 14.5

Appalachian North Carolina 85 101 104 112 9.9 11.0 12.0 11.9

Non-Appalachian North Carolina 489 608 651 746 12.3 13.5 14.5 15.0

Ohio 814 896 903 959 12.3 13.2 13.7 13.7

Appalachian Ohio 71 76 81 81 7.7 8.2 9.0 8.8

Non-Appalachian Ohio 743 819 823 878 13.0 14.0 14.4 14.5

Pennsylvania 819 949 979 1,064 11.9 13.1 13.4 13.8

Appalachian Pennsylvania 310 357 372 389 10.1 11.2 11.6 11.9

Non-Appalachian Pennsylvania 509 592 608 675 13.4 14.5 14.9 15.2

South Carolina 248 312 333 386 11.0 12.6 13.6 14.0

Appalachian South Carolina 73 96 102 115 12.0 14.7 15.8 15.7

Non-Appalachian South Carolina 175 215 231 272 10.7 11.8 12.8 13.5

Tennessee 410 462 488 570 12.0 12.5 13.4 14.2

Appalachian Tennessee 150 170 180 200 10.6 11.1 12.2 12.7

Non-Appalachian Tennessee 261 293 308 370 13.1 13.5 14.3 15.2

Virginia 696 840 875 943 15.7 17.3 18.0 18.1

Appalachian Virginia 26 33 33 35 7.2 8.7 9.2 9.7

Non-Appalachian Virginia 669 807 842 909 16.5 18.0 18.7 18.8

West Virginia (entire state) 77 85 88 89 8.8 9.3 9.6 10.0

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 30

Figure 13: Percentage of total employment in the Appalachian Region, Professional and

Technical Services, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 31

Health and Social Services

This category includes all establishments that provide health care or social assistance of any sort. 

Medical offices, hospitals, and nursing and residential facilities are part of this category, as too are social 

assistance centers, such as food banks and homeless shelters. One important note is that public

hospitals and medical offices are excluded from this category.

As seen in Figure 14, this sector’s industrial shares have increased over recent years for both Appalachia 

and the United States as a whole, with the Region having a slightly larger share of its overall 

employment engaged in the Health and Social Services sector than the country overall. In 2002, 9.9 

percent of Appalachia’s employment was in the Health and Social Services industry; by 2017, this had 

increased to 11.6 percent. Over the same time period, the industrial share for the United States as a

whole grew from 9.5 percent to 11.3 percent.

Figure 14: Industrial share, Health and Social Services, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

9.5%

11.3%

9.9%

11.6%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total Employment

Industrial share: Health & Social Services

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 32

In Figure 15 we see that in each of the three time periods considered, employment growth in Health and 

Social Services was larger in the United States than in the Region. The largest relative gap was during the 

2012–2017 period, when growth in the country as a whole (10.5 percent) was much higher than in 

Appalachia (5.3 percent).

Figure 15: Percent change in employment, Health and Social Services, 2002–2007, 2007–2012, 

and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 7 shows variation in the category’s employment and industrial shares throughout the Region. The 

most notable variation is at the subregion level, where industrial shares decline as we move from 

Northern Appalachia (14.1 percent) to Southern Appalachia (8.7 percent). There is little difference based 

on metro designation.

This north-south trend is also seen at the state level, with the Appalachian portions of South Carolina 

(7.9 percent), Georgia (8.3 percent), and Alabama (9.2 percent) having the lowest Health and Social 

Services shares in the Region—and values that are lower than the non-Appalachian portions of the 

respective states, as well. Appalachian Maryland (14.4 percent), Appalachian Pennsylvania (14.2 

percent), and West Virginia (14.1 percent) had the largest shares.

Figure 16 then displays the county-level industrial shares throughout the Region.

14.5%

11.6%

10.5%

14.1%

6.6%

5.3%

0%

2%

4%

6%

8%

10%

12%

14%

16%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 33

Table 7: Employment and industrial shares, Health and Social Services, 2002, 2007, 2012, and 2017

Health, Social Services Employment (thousands) Industrial Share

2002 2007 2012 2017 2002 2007 2012 2017

United States 15,729 18,002 20,093 22,199 9.5 10.0 11.2 11.3

Appalachian Region 1,221 1,392 1,484 1,562 9.9 10.6 11.6 11.6

Non-Appalachian U.S. 14,508 16,609 18,609 20,637 9.5 10.0 11.2 11.3

Subregions

Northern Appalachia 546 600 627 641 12.4 13.2 14.0 14.1

North Central Appalachia 126 138 151 155 11.6 12.1 13.2 13.7

Central Appalachia 77 85 89 89 10.0 10.8 11.5 11.8

South Central Appalachia 220 266 281 299 9.1 10.2 11.3 11.3

Southern Appalachia 252 304 336 378 7.0 7.5 8.6 8.7

County Types

Large Metros (pop. 1 million +) 289 333 356 386 10.1 10.5 11.3 11.4

Small Metros (pop. <1 million) 558 643 691 734 10.2 11.0 12.1 12.2

Nonmetro, Adjacent to Large Metros 96 109 113 113 9.4 10.4 11.2 10.9

Nonmetro, Adjacent to Small Metros 163 182 190 192 9.2 9.8 10.7 10.6

Rural (nonmetro, not adj. to a metro) 115 126 134 137 9.9 10.5 11.4 11.7

Alabama 187 218 232 249 7.9 8.4 9.3 9.4

Appalachian Alabama 120 139 147 158 7.9 8.3 9.2 9.2

Non-Appalachian Alabama 67 79 85 92 8.0 8.5 9.5 9.7

Georgia 366 447 502 563 7.5 8.1 9.3 9.3

Appalachian Georgia 72 95 110 130 6.2 6.7 8.1 8.3

Non-Appalachian Georgia 294 352 392 433 8.0 8.6 9.7 9.6

Kentucky 213 235 257 269 9.4 9.7 10.8 10.7

Appalachian Kentucky 52 57 61 62 10.8 11.4 12.4 12.7

Non-Appalachian Kentucky 161 178 196 207 9.1 9.3 10.3 10.2

Maryland 329 371 413 442 10.4 10.8 12.0 11.9

Appalachian Maryland 17 18 20 20 13.0 13.1 14.3 14.4

Non-Appalachian Maryland 312 353 393 422 10.3 10.7 11.9 11.9

Mississippi 114 133 149 158 7.8 8.6 9.8 10.0

Appalachian Mississippi 23 27 30 32 7.7 8.9 9.7 10.0

Non-Appalachian Mississippi 90 106 120 126 7.8 8.6 9.9 9.9

New York 1,317 1,462 1,569 1,727 12.7 13.2 13.7 13.9

Appalachian New York 68 71 73 73 12.3 12.5 13.4 13.6

Non-Appalachian New York 1,249 1,391 1,496 1,654 12.8 13.2 13.7 13.9

North Carolina 401 508 527 571 8.3 9.4 9.8 9.6

Appalachian North Carolina 90 108 110 123 10.4 11.8 12.7 13.1

Non-Appalachian North Carolina 312 400 416 448 7.8 8.9 9.3 9.0

Ohio 706 788 853 899 10.6 11.6 12.9 12.9

Appalachian Ohio 105 115 119 121 11.4 12.4 13.3 13.2

Non-Appalachian Ohio 601 673 734 778 10.5 11.5 12.9 12.8

Pennsylvania 838 949 1,022 1,103 12.2 13.1 14.0 14.3

Appalachian Pennsylvania 380 427 449 463 12.3 13.4 14.0 14.2

Non-Appalachian Pennsylvania 458 522 572 640 12.0 12.8 14.0 14.4

South Carolina 156 183 206 233 6.9 7.4 8.4 8.5

Appalachian South Carolina 37 42 49 58 6.1 6.5 7.5 7.9

Non-Appalachian South Carolina 119 141 157 176 7.2 7.7 8.7 8.7

Tennessee 292 356 396 425 8.6 9.6 10.9 10.6

Appalachian Tennessee 119 146 158 163 8.4 9.5 10.7 10.4

Non-Appalachian Tennessee 173 211 238 262 8.7 9.7 11.0 10.8

Virginia 343 398 451 498 7.7 8.2 9.3 9.6

Appalachian Virginia 30 33 34 35 8.1 8.8 9.6 9.7

Non-Appalachian Virginia 313 365 417 463 7.7 8.1 9.3 9.6

West Virginia (entire state) 107 113 124 125 12.3 12.3 13.4 14.1

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 34

Figure 16: Percentage of total employment in the Appalachian Region, Health and Social Services, 

2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 35

Retail Trade

This category includes all establishments that sell merchandise of any sort and those that offer services 

related to the sale of the merchandise. Car dealerships, convenience stores, supermarkets (not 

restaurants and bars), department stores, and healthcare stores (e.g., pharmacies) are included, and so 

too are Internet retailers without a physical storefront.

Figure 17 shows a slight decline in the category’s industrial share since 2002 for both Appalachia and the 

United States as a whole. The Region, which consistently had a larger share of its employment engaged 

in the sector, saw Retail Trade’s industrial share decline from 12.3 percent in 2002 to 11.1 percent in 

2017. The United States experienced a decrease of a similar magnitude, dropping from 11 percent in 

2002 to 9.8 percent in 2017.

Figure 17: Industrial share, Retail Trade, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

11.0%

9.8%

12.3%

11.1%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 36

Figure 18 shows growth in employment for both the United States as a whole and Appalachia across the

three recent time periods. In both the 2002–2007 and 2012–2017 periods, national growth was faster 

than the Region’s growth; in 2007–2012, Appalachia’s decline was steeper than that of the country as a 

whole.

Figure 18: Percent change in employment, Retail Trade, 2002–2007, 2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

As seen in Table 8, there is little variation at the subregion level throughout Appalachia. However, there 

does seem to be a trend based on metro designation, with Retail Trade accounting for an increasing 

share of total employment as one moves from large metro (10.7 percent in 2017) to rural areas (11.7

percent)—though the differences are only slight.

The Appalachian portions of South Carolina (10.5 percent), Alabama (10.6 percent), and Mississippi (10.8 

percent) had the lowest Retail Trade shares in the Region in 2017, and these three states were also the 

only ones in the Region in which the Appalachian portions had smaller industrial shares than the nonAppalachian portions. The Appalachian portions of Maryland (13.6 percent), Kentucky (12.2 percent), 

and Ohio (12 percent) had the largest shares.

Figure 19 then displays the county-level industrial shares throughout the Region.

4.3%

-4.7%

6.4%

2.4%

-5.7%

2.5%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 37

Table 8: Employment and industrial shares, Retail Trade, 2002, 2007, 2012, and 2017

Retail Trade Employment (thousands) Industrial Share

2002 2007 2012 2017 2002 2007 2012 2017

United States 18,187 18,969 18,074 19,222 11.0 10.6 10.1 9.8

Appalachian Region 1,507 1,543 1,456 1,493 12.3 11.8 11.4 11.1

Non-Appalachian U.S. 16,680 17,426 16,618 17,730 10.9 10.5 10.0 9.7

Subregions

Northern Appalachia 549 540 513 502 12.4 11.9 11.4 11.0

North Central Appalachia 139 143 135 133 12.8 12.6 11.8 11.8

Central Appalachia 96 94 89 89 12.6 11.9 11.6 11.8

South Central Appalachia 290 300 281 297 12.0 11.5 11.3 11.2

Southern Appalachia 433 466 437 472 12.1 11.5 11.1 10.9

County Types

Large Metros (pop. 1 million +) 352 368 348 365 12.4 11.6 11.1 10.7

Small Metros (pop. <1 million) 666 685 648 665 12.2 11.7 11.3 11.1

Nonmetro, Adjacent to Large Metros 128 127 118 118 12.6 12.1 11.7 11.4

Nonmetro, Adjacent to Small Metros 218 220 205 207 12.3 11.9 11.6 11.4

Rural (nonmetro, not adj. to a metro) 143 143 136 138 12.2 11.9 11.6 11.7

Alabama 278 293 273 283 11.8 11.2 10.9 10.7

Appalachian Alabama 178 186 174 181 11.7 11.1 10.8 10.6

Non-Appalachian Alabama 100 107 99 102 11.9 11.4 11.0 10.8

Georgia 537 578 542 601 11.1 10.5 10.1 9.9

Appalachian Georgia 147 169 160 180 12.7 12.0 11.8 11.4

Non-Appalachian Georgia 391 410 382 422 10.6 10.0 9.5 9.3

Kentucky 259 261 247 261 11.4 10.8 10.3 10.4

Appalachian Kentucky 63 62 58 59 13.0 12.4 11.9 12.2

Non-Appalachian Kentucky 196 200 189 202 11.0 10.4 9.9 9.9

Maryland 348 363 340 345 11.0 10.5 9.9 9.3

Appalachian Maryland 18 20 19 19 13.9 14.1 13.8 13.6

Non-Appalachian Maryland 330 343 321 326 10.9 10.4 9.7 9.2

Mississippi 169 172 164 172 11.6 11.2 10.8 10.8

Appalachian Mississippi 35 34 34 35 11.6 11.2 11.0 10.8

Non-Appalachian Mississippi 134 138 130 137 11.6 11.2 10.7 10.8

New York 1,006 1,059 1,073 1,103 9.7 9.6 9.4 8.9

Appalachian New York 67 67 63 60 12.1 11.8 11.6 11.3

Non-Appalachian New York 939 992 1,010 1,042 9.6 9.4 9.3 8.8

North Carolina 533 568 548 603 11.0 10.5 10.2 10.2

Appalachian North Carolina 99 100 96 103 11.5 10.9 11.0 11.0

Non-Appalachian North Carolina 434 468 452 500 10.9 10.4 10.1 10.0

Ohio 762 729 676 692 11.5 10.7 10.2 9.9

Appalachian Ohio 122 120 108 110 13.2 12.9 12.1 12.0

Non-Appalachian Ohio 640 609 567 582 11.2 10.4 9.9 9.6

Pennsylvania 798 801 769 765 11.6 11.0 10.6 10.0

Appalachian Pennsylvania 380 373 358 348 12.3 11.7 11.2 10.7

Non-Appalachian Pennsylvania 418 428 411 417 11.0 10.5 10.1 9.4

South Carolina 268 288 273 296 11.9 11.6 11.1 10.8

Appalachian South Carolina 73 77 70 77 12.0 11.7 10.8 10.5

Non-Appalachian South Carolina 195 211 203 219 11.9 11.6 11.3 10.9

Tennessee 388 412 389 416 11.4 11.1 10.7 10.4

Appalachian Tennessee 171 179 167 175 12.1 11.7 11.3 11.2

Non-Appalachian Tennessee 217 233 221 240 10.9 10.7 10.2 9.9

Virginia 479 509 482 500 10.8 10.4 9.9 9.6

Appalachian Virginia 45 46 42 42 12.3 12.0 11.7 11.7

Non-Appalachian Virginia 433 463 439 458 10.7 10.3 9.8 9.5

West Virginia (entire state) 109 112 107 103 12.5 12.3 11.6 11.6

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 38

Figure 19: Percentage of total employment in the Appalachian Region, Retail Trade, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 39

State and Local Government

This sector includes all those employed by any state or local government, regardless of establishment 

classification. In addition to all governmental offices, departments, and agencies, also included are

public schools, police and fire departments, and public colleges and universities.

Both the Appalachian Region and the United States overall saw slight declines in their State and Local 

Government industrial shares in recent years, though the country as a whole experienced an even

steeper decline, dropping from 11.3 percent in 2002 to 10 percent in 2017. Appalachia meanwhile saw 

State and Local Government’s share of overall employment drop from 11.7 percent to 11.1 percent over 

the same time period.

Figure 20: Industrial share, State and Local Government, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

11.3%

10.0%

11.7%

11.1%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 40

In Figure 21, we see that Appalachia had slightly faster growth in employment from 2002 to 2007 than 

the United States as a whole, and then a smaller decrease than the country overall from 2007 to 2012. 

However, in the most recent period, the Region saw a decline in employment of 0.7 percent, whereas 

the United States experienced growth of 2.3 percent.

Figure 21: Percent change in employment, State and Local Government, 2002–2007, 2007–2012, and 

2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

As seen in Table 9, among the subregions, North Central and Central Appalachia had the highest 

industrial shares in 2017, at 14 percent for each. Northern (10.4 percent) and Southern Appalachia (10.5 

percent) had the lowest shares, though these were still above U.S. shares overall. A larger share of total 

employment belonged to State and Local Government as one moved from large metro (8 percent) to 

nonmetro and rural areas, which ranged from 12.4 to 13.3 percent.

In 2017, seven states had Appalachian portions with larger industrial shares in State and Local 

Government than the non-Appalachian portions, while five states had just the opposite, with these 

being found primarily in the southern parts of the Region (Alabama, Georgia, Mississippi, North Carolina, 

and South Carolina). West Virginia had one of the largest shares in the Region at 13.8 percent, with the 

Appalachian portions of Virginia (16.9 percent), New York (15.2 percent), and Kentucky (13.3 percent) all 

reporting large State and Local Government shares, as well.

Figure 22 then displays the county-level industrial shares throughout the Region.

4.0%

-1.2%

2.3%

4.9%

-0.9% -0.7%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 41

Table 9: Employment and industrial shares, State and Local Government, 2002, 2007, 2012, and 2017

State & Local Government Employment (thousands) Industrial Share

2002 2007 2012 2017 2002 2007 2012 2017

United States 18,662 19,407 19,173 19,619 11.3 10.8 10.7 10.0

Appalachian Region 1,441 1,511 1,498 1,488 11.7 11.5 11.7 11.1

Non-Appalachian U.S. 17,221 17,896 17,675 18,131 11.3 10.8 10.6 9.9

Subregions

Northern Appalachia 499 505 489 474 11.3 11.1 10.9 10.4

North Central Appalachia 154 159 163 158 14.2 14.0 14.3 14.0

Central Appalachia 109 113 112 105 14.3 14.3 14.5 14.0

South Central Appalachia 277 290 294 295 11.4 11.1 11.8 11.1

Southern Appalachia 401 443 440 455 11.2 11.0 11.2 10.5

County Types

Large Metros (pop. 1 million +) 257 280 272 273 9.0 8.9 8.7 8.0

Small Metros (pop. <1 million) 662 690 695 697 12.1 11.8 12.2 11.6

Nonmetro, Adjacent to Large Metros 139 143 139 139 13.7 13.6 13.7 13.3

Nonmetro, Adjacent to Small Metros 223 234 229 225 12.5 12.7 12.9 12.4

Rural (nonmetro, not adj. to a metro) 159 163 163 156 13.7 13.6 13.8 13.2

Alabama 302 322 316 321 12.8 12.3 12.6 12.1

Appalachian Alabama 184 197 195 200 12.1 11.8 12.1 11.7

Non-Appalachian Alabama 117 125 121 122 14.0 13.4 13.6 12.9

Georgia 534 595 576 584 11.0 10.8 10.7 9.6

Appalachian Georgia 111 135 132 136 9.6 9.6 9.8 8.7

Non-Appalachian Georgia 423 460 444 448 11.4 11.3 11.0 9.9

Kentucky 262 277 277 272 11.6 11.5 11.6 10.8

Appalachian Kentucky 68 70 69 64 14.2 14.0 14.0 13.3

Non-Appalachian Kentucky 194 207 208 208 10.9 10.8 10.9 10.2

Maryland 324 339 344 343 10.3 9.9 10.0 9.3

Appalachian Maryland 15 16 16 15 11.3 11.1 11.5 10.9

Non-Appalachian Maryland 309 324 328 328 10.2 9.8 9.9 9.2

Mississippi 217 223 223 219 14.9 14.5 14.7 13.8

Appalachian Mississippi 39 40 40 40 12.8 13.0 13.0 12.5

Non-Appalachian Mississippi 179 183 183 179 15.5 14.9 15.1 14.1

New York 1,316 1,337 1,289 1,287 12.7 12.1 11.3 10.3

Appalachian New York 85 89 84 82 15.5 15.8 15.6 15.2

Non-Appalachian New York 1,230 1,248 1,205 1,205 12.6 11.9 11.1 10.1

North Carolina 580 631 651 658 12.0 11.6 12.2 11.1

Appalachian North Carolina 96 103 103 102 11.2 11.2 11.9 10.9

Non-Appalachian North Carolina 484 528 548 557 12.1 11.7 12.2 11.2

Ohio 724 724 685 692 10.9 10.7 10.4 9.9

Appalachian Ohio 116 115 108 108 12.5 12.3 12.0 11.8

Non-Appalachian Ohio 608 610 577 583 10.6 10.4 10.1 9.6

Pennsylvania 657 668 651 641 9.5 9.2 8.9 8.3

Appalachian Pennsylvania 329 333 325 315 10.7 10.4 10.1 9.7

Non-Appalachian Pennsylvania 328 335 326 326 8.6 8.2 8.0 7.4

South Carolina 294 308 308 323 13.1 12.4 12.6 11.7

Appalachian South Carolina 67 71 73 79 11.0 10.9 11.2 10.8

Non-Appalachian South Carolina 227 236 236 244 13.8 12.9 13.0 12.1

Tennessee 355 374 376 376 10.4 10.1 10.3 9.4

Appalachian Tennessee 155 161 164 165 11.0 10.5 11.1 10.5

Non-Appalachian Tennessee 200 213 212 211 10.1 9.8 9.8 8.7

Virginia 489 525 536 544 11.1 10.8 11.0 10.5

Appalachian Virginia 56 59 59 60 15.4 15.6 16.5 16.9

Non-Appalachian Virginia 433 466 477 484 10.7 10.4 10.6 10.0

West Virginia (entire state) 119 122 130 122 13.7 13.4 14.1 13.8

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 42

Figure 22: Percentage of total employment in the Appalachian Region, State and Local Government, 

2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 43

Manufacturing

This category includes all establishments that transform materials and components into a new product; 

assemblage of component parts is also included. Plants, factories, and mills are found in this category, 

and so too are establishments involved with food processing (e.g., canning), fabricated metals, industrial 

machinery (e.g., computers and office equipment), and transportation equipment (e.g., cars and 

airplanes).

As noted previously, and as seen below in Figure 23, among all industrial categories, Manufacturing 

experienced the largest decline over recent years in both Appalachia and the United States as a whole. 

The Region saw its industrial share decrease from 13.8 percent in 2002 to 10 percent in 2017. 

Meanwhile, the United States went from having 9.5 percent of overall employment dedicated to 

manufacturing in 2002 to just 6.8 percent in 2017. 

Figure 23: Industrial share, Manufacturing, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

9.5%

6.8%

13.8%

10.0%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 44

Figure 24 shows us the steep drops in Manufacturing employment over recent years, with Appalachia 

experiencing sharper declines during both the 2002–2007 and 2007–2012 periods than the United 

States as a whole. However, between 2012 and 2017, employment in the industry increased for both 

geographies (5.6 percent for the United States and 5.5 percent for the Appalachian Region).

Figure 24: Percent change in employment, Manufacturing, 2002–2007, 2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

As seen in Table 10, among the Region’s subregions, South Central (10.7 percent) and Southern 

Appalachia (11.6 percent) had the largest Manufacturing shares in 2017, with the smallest belonging to 

North Central Appalachia (6.3 percent). The most noticeable pattern appears again as we move away 

from cities throughout the Region, as large metro areas (6.5 percent) had a much lower share of total 

employment dedicated to Manufacturing than nonmetro (13.1 and 13.6 percent, respectively) and rural 

areas (11.2 percent).

In 2017, other than Kentucky and Ohio, the Appalachian portions of states throughout the Region all had

larger shares of manufacturing than the non-Appalachian portions. The Appalachian portions of 

Mississippi (16 percent), South Carolina (13 percent), and Virginia (11.6 percent) had the largest shares. 

West Virginia, with just 5.6 percent of total employment in the state dedicated to Manufacturing, had

the lowest industrial share in the Region.

Figure 25 then displays the county-level industrial shares throughout the Region.

-8.1%

-12.9%

5.6%

-10.8%

-15.7%

5.5%

-20%

-15%

-10%

-5%

0%

5%

10%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 45

Table 10: Employment and industrial shares, Manufacturing, 2002, 2007, 2012, and 2017

Manufacturing Employment (thousands) Industrial Share

2002 2007 2012 2017 2002 2007 2012 2017

United States 15,744 14,461 12,597 13,307 9.5 8.1 7.0 6.8

Appalachian Region 1,691 1,509 1,271 1,342 13.8 11.5 9.9 10.0

Non-Appalachian U.S. 14,053 12,952 11,326 11,965 9.2 7.8 6.8 6.5

Subregions

Northern Appalachia 552 488 421 412 12.5 10.8 9.4 9.0

North Central Appalachia 97 87 74 72 9.0 7.6 6.5 6.3

Central Appalachia 85 78 67 72 11.1 9.9 8.7 9.5

South Central Appalachia 381 322 260 284 15.7 12.4 10.5 10.7

Southern Appalachia 575 533 449 503 16.0 13.2 11.4 11.6

County Types

Large Metros (pop. 1 million +) 247 236 210 219 8.7 7.5 6.7 6.5

Small Metros (pop. <1 million) 777 686 578 609 14.2 11.7 10.1 10.2

Nonmetro, Adjacent to Large Metros 171 154 129 136 16.9 14.6 12.8 13.1

Nonmetro, Adjacent to Small Metros 314 277 228 246 17.7 15.0 12.8 13.6

Rural (nonmetro, not adj. to a metro) 182 156 127 132 15.6 13.0 10.8 11.2

Alabama 315 304 253 275 13.3 11.7 10.1 10.4

Appalachian Alabama 216 207 166 184 14.2 12.4 10.3 10.8

Non-Appalachian Alabama 99 98 86 91 11.7 10.5 9.6 9.6

Georgia 488 449 374 424 10.0 8.2 6.9 7.0

Appalachian Georgia 177 178 149 171 15.3 12.6 11.0 10.9

Non-Appalachian Georgia 310 271 225 252 8.4 6.6 5.6 5.6

Kentucky 281 262 230 259 12.4 10.9 9.6 10.3

Appalachian Kentucky 52 48 42 44 10.8 9.7 8.6 9.1

Non-Appalachian Kentucky 229 214 188 215 12.9 11.2 9.9 10.6

Maryland 162 139 118 119 5.1 4.0 3.4 3.2

Appalachian Maryland 14 12 10 11 10.9 8.4 7.4 7.7

Non-Appalachian Maryland 148 127 107 108 4.9 3.9 3.2 3.0

Mississippi 192 173 142 151 13.2 11.3 9.3 9.5

Appalachian Mississippi 70 57 49 51 23.2 18.7 15.7 16.0

Non-Appalachian Mississippi 122 116 93 99 10.5 9.4 7.7 7.8

New York 676 581 491 486 6.5 5.2 4.3 3.9

Appalachian New York 73 69 59 55 13.2 12.1 10.8 10.2

Non-Appalachian New York 603 513 432 431 6.2 4.9 4.0 3.6

North Carolina 659 561 460 494 13.6 10.3 8.6 8.3

Appalachian North Carolina 136 107 81 90 15.9 11.6 9.3 9.7

Non-Appalachian North Carolina 523 454 379 404 13.1 10.1 8.4 8.1

Ohio 902 797 683 720 13.6 11.7 10.3 10.3

Appalachian Ohio 133 113 96 95 14.4 12.2 10.7 10.3

Non-Appalachian Ohio 769 684 587 625 13.5 11.7 10.3 10.3

Pennsylvania 778 681 595 596 11.3 9.4 8.2 7.8

Appalachian Pennsylvania 361 323 280 275 11.7 10.1 8.7 8.5

Non-Appalachian Pennsylvania 417 358 315 321 11.0 8.8 7.7 7.2

South Carolina 296 257 229 251 13.2 10.4 9.4 9.1

Appalachian South Carolina 112 91 85 95 18.4 13.9 13.1 13.0

Non-Appalachian South Carolina 184 166 144 156 11.2 9.1 8.0 7.7

Tennessee 440 395 327 366 12.9 10.7 9.0 9.1

Appalachian Tennessee 214 190 161 178 15.1 12.5 10.9 11.3

Non-Appalachian Tennessee 226 205 166 188 11.3 9.4 7.7 7.7

Virginia 329 286 243 251 7.4 5.9 5.0 4.8

Appalachian Virginia 61 53 41 42 16.7 13.9 11.5 11.6

Non-Appalachian Virginia 267 233 202 209 6.6 5.2 4.5 4.3

West Virginia (entire state) 71 62 52 50 8.1 6.7 5.7 5.6

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 46

Figure 25: Percentage of total employment in the Appalachian Region, Manufacturing, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 47

Food, Lodging, and Entertainment

This category includes a wide range of establishments engaged primarily in amusement, hobby, and 

leisure time activities (e.g., performing arts venues, sporting event venues, zoos, golf courses, and 

casinos). Also included are bars and restaurants, as well any sort of lodging (e.g., hotels, motels, bed and 

breakfasts, and campgrounds). 

As seen in Figure 26, the share of total employment dedicated to this industry increased steadily from 

2002 to 2017—for both Appalachia and the United States as a whole. Though the country overall had a 

larger share of total employment engaged in the sector over the past 15 years, the gap between the 

country as a whole and Appalachia decreased ever so slightly; in 2002, the United States had an 8.6

percent industrial share in Food, Lodging, and Entertainment, and the Region’s share was 7.9 percent. In 

2017, the United States had a 9.8 percent share, compared with 9.2 percent in the Region.

Figure 26: Industrial share, Food, Lodging, and Entertainment, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

8.6%

9.8%

7.9%

9.2%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 48

In Figure 27 we see that in terms of employment growth in the industry, both the United States and 

Appalachia experienced growth of 12.4 percent during the 2002–2007 period. However, in the 

subsequent time periods, the Region’s growth was slower than in the country overall.

Figure 27: Percent change in employment, Food, Lodging, and Entertainment, 2002–2007, 2007–2012, 

and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

In Table 11 we see that South Central Appalachia (10.5 percent) had the largest industrial share of all 

subregions in 2017, and Central Appalachia (7.2 percent) the smallest. A slight pattern exists based on 

metro designation throughout the Region, with metro areas having the largest shares (9.4 and 9.6

percent), followed by nonmetro areas (8.3 and 9.2 percent), and rural areas (8 percent).

The Appalachian portions of North Carolina (10.9 percent) and Tennessee (10.2 percent) had the largest 

Food, Lodging, and Entertainment shares among states in the Region in 2017, with the values in each 

being higher than those found in the non-Appalachian portions of the two states. Meanwhile, the 

Appalachian portions of Mississippi (7.4 percent) and Kentucky (7.7 percent) had the smallest shares.

Figure 28 then displays the county-level industrial shares throughout the Region.

12.4%

4.4%

15.1%

12.4%

1.9%

11.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 49

Table 11: Employment and ind. shares, Food, Lodging, and Entertainment, 2002, 2007, 2012, and 2017

Food, Lodging, Entertainment Employment (thousands) Industrial Share

2002 2007 2012 2017 2002 2007 2012 2017

United States 14,187 15,943 16,645 19,155 8.6 8.9 9.3 9.8

Appalachian Region 970 1,091 1,111 1,240 7.9 8.3 8.7 9.2

Non-Appalachian U.S. 13,217 14,852 15,534 17,915 8.6 8.9 9.3 9.8

Subregions

Northern Appalachia 369 387 397 420 8.4 8.5 8.8 9.2

North Central Appalachia 90 99 103 108 8.3 8.7 9.1 9.5

Central Appalachia 46 52 51 54 6.1 6.6 6.6 7.2

South Central Appalachia 205 237 242 278 8.4 9.1 9.7 10.5

Southern Appalachia 261 316 318 380 7.3 7.8 8.1 8.8

County Types

Large Metros (pop. 1 million +) 233 271 279 320 8.2 8.6 8.9 9.4

Small Metros (pop. <1 million) 445 503 514 573 8.1 8.6 9.0 9.6

Nonmetro, Adjacent to Large Metros 75 78 79 86 7.3 7.4 7.8 8.3

Nonmetro, Adjacent to Small Metros 139 152 154 167 7.8 8.2 8.7 9.2

Rural (nonmetro, not adj. to a metro) 79 86 86 94 6.8 7.2 7.3 8.0

Alabama 173 200 204 236 7.3 7.7 8.1 8.9

Appalachian Alabama 109 126 128 147 7.1 7.5 7.9 8.6

Non-Appalachian Alabama 64 75 76 89 7.6 8.0 8.5 9.4

Georgia 392 470 481 579 8.1 8.6 8.9 9.5

Appalachian Georgia 85 112 111 140 7.3 7.9 8.2 8.9

Non-Appalachian Georgia 307 358 370 439 8.3 8.8 9.2 9.7

Kentucky 174 197 202 226 7.7 8.2 8.4 9.0

Appalachian Kentucky 31 34 34 37 6.4 6.9 7.0 7.7

Non-Appalachian Kentucky 143 163 167 189 8.0 8.5 8.8 9.3

Maryland 258 287 302 345 8.2 8.3 8.8 9.3

Appalachian Maryland 11 12 13 14 8.0 8.8 9.4 9.7

Non-Appalachian Maryland 248 275 289 331 8.2 8.3 8.8 9.3

Mississippi 135 141 140 155 9.3 9.2 9.2 9.8

Appalachian Mississippi 17 20 20 24 5.7 6.4 6.6 7.4

Non-Appalachian Mississippi 118 122 119 132 10.2 9.9 9.9 10.4

New York 824 919 1,048 1,211 8.0 8.3 9.2 9.7

Appalachian New York 46 47 49 53 8.3 8.4 9.0 9.8

Non-Appalachian New York 779 872 999 1,159 7.9 8.3 9.2 9.7

North Carolina 384 461 493 582 7.9 8.5 9.2 9.8

Appalachian North Carolina 73 85 86 102 8.5 9.2 9.9 10.9

Non-Appalachian North Carolina 311 376 407 480 7.8 8.3 9.1 9.6

Ohio 555 582 588 654 8.4 8.6 8.9 9.3

Appalachian Ohio 76 78 78 84 8.2 8.4 8.7 9.2

Non-Appalachian Ohio 479 504 510 570 8.4 8.6 8.9 9.4

Pennsylvania 543 590 623 678 7.9 8.1 8.5 8.8

Appalachian Pennsylvania 256 270 278 295 8.3 8.4 8.7 9.1

Non-Appalachian Pennsylvania 287 321 344 383 7.6 7.9 8.4 8.6

South Carolina 211 247 253 295 9.4 9.9 10.3 10.7

Appalachian South Carolina 50 59 59 68 8.3 9.0 9.1 9.3

Non-Appalachian South Carolina 161 188 194 227 9.8 10.3 10.8 11.3

Tennessee 286 334 342 406 8.4 9.0 9.4 10.1

Appalachian Tennessee 116 136 139 160 8.2 8.9 9.4 10.2

Non-Appalachian Tennessee 170 198 204 246 8.5 9.1 9.4 10.1

Virginia 353 407 427 481 8.0 8.4 8.8 9.3

Appalachian Virginia 28 31 30 30 7.7 8.1 8.4 8.4

Non-Appalachian Virginia 325 376 397 451 8.0 8.4 8.8 9.3

West Virginia (entire state) 73 82 85 85 8.4 8.9 9.2 9.6

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 50

Figure 28: Percentage of total employment in the Appalachian Region, Food, Lodging, and

Entertainment, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 51

Finance, Insurance, and Real Estate

This sector includes all establishments engaged in financial services (e.g., banks, credit unions, and 

investment companies), insurance agents and brokers, establishments involved in real estate (e.g., 

agencies, property management, and appraisal firms), and all rental and leasing establishments, 

including even car and truck rental.

As seen in Figure 29, the Finance, Insurance, and Real Estate industry saw a steady increase in its share 

of total employment from 2002 to 2017—for both Appalachia and the country as a whole. The gap 

between the two remained relatively stable over the years; in 2002, Appalachia’s industrial share in the 

sector was 6.1 percent, compared to 8.2 percent for the United States overall. In 2017, Appalachia’s 

share of total employment dedicated to the industry was 7.8 percent; at the national level, this figure 

was 10 percent.

Figure 29: Industrial share, Finance, Insurance, and Real Estate, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

8.2%

10.0%

6.1%

7.8%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 52

In Figure 30, we see that growth in employment in the industry has been comparable in Appalachia and 

the United States overall for each of the three time periods considered. The largest gap came during the 

2012–2017 period, when the United States experienced slightly faster growth than the Region (11.7 

percent compared to 8.6 percent).

Figure 30: Percent change in employment, Finance, Insurance, and Real Estate, 2002–2007, 

2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Among the subregions, as seen in Table 12, Northern (7.9 percent) and Southern Appalachia (8.3 

percent) had the largest shares in 2017, and Central Appalachia (5.4 percent) the smallest. Again, the 

most notable variation occurred based on metro designation; as we move from large metro areas (10.2

percent) to rural areas (5.8 percent), industrial shares decrease.

Only in Alabama did the Appalachian portion of the state (8.6 percent) have a larger industrial share 

than the non-Appalachian portion (7.9 percent) in 2017. The Appalachian portions of Kentucky (5.5 

percent) and Mississippi (6 percent)—as well as West Virginia (6 percent)—had the smallest shares in 

the Region. In addition to Appalachian Alabama, the Appalachian portions of Maryland (9.4 percent) and 

Georgia (8.7 percent) had high industrial shares in the Finance, Insurance, and Real Estate sector.

Figure 31 then displays the county-level industrial shares throughout the Region.

22.2%

6.1%

11.7%

20.9%

5.9%

8.6%

0%

5%

10%

15%

20%

25%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 53

Table 12: Employment and ind. shares, Finance, Insurance, Real Estate, 2002, 2007, 2012, and 2017

Finance, Insurance, Real Estate Employment (thousands) Industrial Share

2002 2007 2012 2017 2002 2007 2012 2017

United States 13,541 16,543 17,558 19,616 8.2 9.2 9.8 10.0

Appalachian Region 748 904 958 1,040 6.1 6.9 7.5 7.8

Non-Appalachian U.S. 12,793 15,639 16,600 18,576 8.4 9.4 10.0 10.2

Subregions

Northern Appalachia 277 307 339 361 6.3 6.8 7.5 7.9

North Central Appalachia 61 70 70 72 5.6 6.1 6.2 6.4

Central Appalachia 33 38 40 40 4.3 4.8 5.2 5.4

South Central Appalachia 147 187 190 206 6.1 7.2 7.6 7.8

Southern Appalachia 230 302 318 361 6.4 7.5 8.1 8.3

County Types

Large Metros (pop. 1 million +) 232 287 313 345 8.1 9.1 10.0 10.2

Small Metros (pop. <1 million) 336 401 419 457 6.2 6.9 7.3 7.6

Nonmetro, Adjacent to Large Metros 48 57 58 62 4.7 5.4 5.7 6.0

Nonmetro, Adjacent to Small Metros 81 99 103 108 4.5 5.3 5.8 5.9

Rural (nonmetro, not adj. to a metro) 51 61 65 68 4.4 5.1 5.5 5.8

Alabama 155 194 203 221 6.6 7.5 8.1 8.3

Appalachian Alabama 101 125 134 146 6.6 7.5 8.3 8.6

Non-Appalachian Alabama 55 70 69 75 6.5 7.5 7.7 7.9

Georgia 361 475 490 557 7.4 8.7 9.1 9.2

Appalachian Georgia 78 115 117 136 6.7 8.1 8.7 8.7

Non-Appalachian Georgia 283 361 372 421 7.7 8.8 9.2 9.3

Kentucky 140 170 182 200 6.2 7.0 7.6 7.9

Appalachian Kentucky 21 24 26 26 4.4 4.9 5.3 5.5

Non-Appalachian Kentucky 119 146 156 173 6.7 7.6 8.2 8.5

Maryland 269 331 332 357 8.5 9.6 9.7 9.7

Appalachian Maryland 11 13 14 13 8.5 9.2 9.9 9.4

Non-Appalachian Maryland 258 319 318 344 8.5 9.7 9.6 9.7

Mississippi 79 95 103 111 5.4 6.2 6.8 7.0

Appalachian Mississippi 14 16 18 19 4.5 5.1 5.8 6.0

Non-Appalachian Mississippi 66 80 85 92 5.7 6.5 7.1 7.2

New York 1,098 1,287 1,440 1,626 10.6 11.6 12.6 13.1

Appalachian New York 28 31 33 34 5.0 5.5 6.1 6.3

Non-Appalachian New York 1,070 1,256 1,406 1,592 10.9 11.9 12.9 13.4

North Carolina 332 438 461 531 6.9 8.1 8.6 9.0

Appalachian North Carolina 51 67 67 74 6.0 7.2 7.7 7.9

Non-Appalachian North Carolina 281 371 394 457 7.1 8.2 8.8 9.2

Ohio 502 552 576 631 7.6 8.1 8.7 9.0

Appalachian Ohio 50 57 59 61 5.4 6.1 6.5 6.7

Non-Appalachian Ohio 452 495 517 570 7.9 8.4 9.1 9.4

Pennsylvania 535 611 662 723 7.8 8.4 9.1 9.4

Appalachian Pennsylvania 204 225 253 274 6.6 7.1 7.9 8.4

Non-Appalachian Pennsylvania 331 385 409 449 8.7 9.5 10.0 10.1

South Carolina 157 209 215 243 7.0 8.4 8.8 8.8

Appalachian South Carolina 38 47 49 58 6.3 7.2 7.6 8.0

Non-Appalachian South Carolina 119 162 166 184 7.3 8.9 9.2 9.1

Tennessee 234 287 294 338 6.9 7.8 8.1 8.4

Appalachian Tennessee 89 113 113 121 6.3 7.4 7.7 7.7

Non-Appalachian Tennessee 145 175 181 216 7.3 8.0 8.4 8.9

Virginia 318 395 414 461 7.2 8.1 8.5 8.9

Appalachian Virginia 16 20 21 22 4.4 5.2 5.9 6.2

Non-Appalachian Virginia 302 375 393 439 7.4 8.4 8.7 9.1

West Virginia (entire state) 47 53 53 53 5.4 5.8 5.7 6.0

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 54

Figure 31: Percentage of total employment in the Appalachian Region, Finance, Insurance, and

Real Estate, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 55

Wholesale Trade and Transportation

This category includes establishments that wholesale merchandise without transformation (e.g., 

agricultural and mining outputs) primarily to retailers, wholesalers, and brokers. Also included are all 

establishments involved in both the warehousing and transportation of goods, such as railroads, 

trucking, and other shipping services.

In Figure 32 we see that the industrial share for the Appalachian Region, though it varied some in the 

intervening years, was 6.5 percent in both 2002 and 2017. The United States at large saw its share in the 

Wholesale Trade and Transportation industry increase from 6.9 percent in 2002 to 7.2 percent in 2017.

Figure 32: Industrial share, Wholesale Trade and Transportation, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

6.9%

7.2%

6.5% 6.5%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total Employment

Industrial share: Wholesale Trade, Transportation

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 56

In terms of employment growth in the Wholesale Trade and Transportation industry, in Figure 33 we see 

that during the 2002–2007 period, Appalachia experienced slower growth than the United States, and 

then from 2007 to 2012, a sharper decline. There was large gap in terms of growth in the most recent 

2012–2017 period, with the United States experiencing much faster growth than the Region as a whole 

(16.8 percent compared to 6.2 percent).

Figure 33: Percent change in employment, Wholesale Trade and Transportation, 2002–2007, 

2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

As seen in Table 13, variation by subregion or metro designation was small. Southern (7.1 percent) and 

Northern Appalachia (6.6 percent) had the largest industrial shares among the subregions in 2017, and

large metro areas (7.5 percent) and small metro areas (6.5 percent) had the largest shares among the 

metro designations.

For nine of the 12 states with both Appalachian and non-Appalachian portions, the non-Appalachian 

portions had the larger industrial shares in their respective states in 2017. The largest Wholesale Trade 

and Transportation industrial shares in the Region belonged to the Appalachian portions of Georgia (8.5 

percent) and Maryland (8.1 percent). Meanwhile, the Appalachian portions of New York (4.3 percent) 

and Kentucky (5.6 percent), along with West Virginia (5.6 percent), had the smallest.

Figure 34 then displays the county-level industrial shares throughout the Region.

9.1%

-3.1%

16.8%

8.2%

-5.0%

6.2%

-10%

-5%

0%

5%

10%

15%

20%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 57

Table 13: Employment and ind. shares, Wholesale Trade and Transportation, 2002, 2007, 2012, 2017

Wholesale Trade, Transportation Employment (thousands) Industrial Share

2002 2007 2012 2017 2002 2007 2012 2017

United States 11,458 12,504 12,112 14,148 6.9 7.0 6.8 7.2

Appalachian Region 801 867 824 874 6.5 6.6 6.4 6.5

Non-Appalachian U.S. 10,657 11,637 11,289 13,274 7.0 7.0 6.8 7.3

Subregions

Northern Appalachia 284 302 293 301 6.4 6.6 6.5 6.6

North Central Appalachia 59 64 61 61 5.4 5.6 5.4 5.4

Central Appalachia 47 48 43 40 6.1 6.0 5.5 5.4

South Central Appalachia 158 170 155 162 6.5 6.5 6.2 6.1

Southern Appalachia 253 284 272 310 7.0 7.0 6.9 7.1

County Types

Large Metros (pop. 1 million +) 220 237 229 255 7.7 7.5 7.3 7.5

Small Metros (pop. <1 million) 360 389 370 388 6.6 6.6 6.5 6.5

Nonmetro, Adjacent to Large Metros 60 65 61 65 5.9 6.2 6.0 6.3

Nonmetro, Adjacent to Small Metros 96 105 99 100 5.4 5.7 5.6 5.5

Rural (nonmetro, not adj. to a metro) 65 70 65 65 5.5 5.8 5.5 5.6

Alabama 153 167 154 162 6.5 6.4 6.2 6.1

Appalachian Alabama 96 105 98 102 6.3 6.3 6.1 6.0

Non-Appalachian Alabama 57 62 56 60 6.8 6.6 6.3 6.3

Georgia 411 455 439 531 8.5 8.3 8.2 8.7

Appalachian Georgia 95 110 108 133 8.2 7.8 8.0 8.5

Non-Appalachian Georgia 316 345 330 398 8.5 8.5 8.2 8.8

Kentucky 174 190 183 207 7.7 7.9 7.7 8.2

Appalachian Kentucky 30 31 27 27 6.2 6.1 5.6 5.6

Non-Appalachian Kentucky 144 160 156 180 8.1 8.3 8.2 8.8

Maryland 191 201 191 241 6.1 5.8 5.6 6.5

Appalachian Maryland 10 10 11 11 7.3 7.3 7.6 8.1

Non-Appalachian Maryland 182 190 181 230 6.0 5.8 5.5 6.5

Mississippi 88 96 92 102 6.1 6.2 6.0 6.4

Appalachian Mississippi 18 21 19 21 6.1 6.9 6.3 6.4

Non-Appalachian Mississippi 70 75 72 81 6.1 6.1 6.0 6.4

New York 692 730 721 819 6.7 6.6 6.3 6.6

Appalachian New York 25 26 24 23 4.6 4.5 4.4 4.3

Non-Appalachian New York 667 704 697 796 6.8 6.7 6.4 6.7

North Carolina 316 353 336 389 6.5 6.5 6.3 6.6

Appalachian North Carolina 48 51 47 47 5.6 5.5 5.4 5.0

Non-Appalachian North Carolina 268 302 289 342 6.7 6.7 6.4 6.9

Ohio 465 507 469 520 7.0 7.5 7.1 7.4

Appalachian Ohio 53 58 56 57 5.7 6.3 6.2 6.2

Non-Appalachian Ohio 412 449 414 463 7.2 7.7 7.2 7.6

Pennsylvania 487 526 514 579 7.1 7.2 7.1 7.5

Appalachian Pennsylvania 210 222 218 225 6.8 7.0 6.8 6.9

Non-Appalachian Pennsylvania 276 303 295 354 7.3 7.5 7.2 8.0

South Carolina 130 148 140 170 5.8 6.0 5.7 6.2

Appalachian South Carolina 43 48 47 54 7.1 7.3 7.2 7.4

Non-Appalachian South Carolina 87 100 94 116 5.3 5.5 5.2 5.8

Tennessee 300 322 303 338 8.8 8.7 8.3 8.5

Appalachian Tennessee 104 111 101 108 7.4 7.3 6.8 6.9

Non-Appalachian Tennessee 195 211 202 230 9.8 9.7 9.4 9.5

Virginia 257 275 261 309 5.8 5.7 5.4 6.0

Appalachian Virginia 18 19 18 17 4.9 5.0 5.0 4.9

Non-Appalachian Virginia 239 256 243 292 5.9 5.7 5.4 6.0

West Virginia (entire state) 50 54 50 48 5.7 5.9 5.4 5.4

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 58

Figure 34: Percentage of total employment in the Appalachian Region, Wholesale Trade and

Transportation, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 59

Personal and Other Services

This is a diverse grouping classified by NAICS code 81, “Other Services (except Public Administration),”

which includes establishments that provide services not included elsewhere in the classification system, 

such as establishments involved with equipment repairs, religious activities, grantmaking, laundry 

services, personal care services, and pet care services.

As seen in Figure 35, the share of employment in this diverse category remained stable from 2002 to 

2017, with similar values for Appalachia and the United States as a whole throughout the entire time 

period. The Region had an industrial share of 6 percent in 2002, and then 5.9 percent in 2017; the 

United States had a 5.7 percent share in both years.

Figure 35: Industrial share, Personal and Other Services, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

5.7% 5.7%

6.0%

5.9%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 60

Figure 36 shows employment growth in the sector over recent time periods. Growth was faster in the 

United States than in the Appalachian Region during each of the three time periods, with the largest gap 

coming in the most recent 2012–2017 period (7.7 percent compared to 3.7 percent).

Figure 36: Percent change in employment, Personal and Other Services, 2002–2007, 2007–2012, 

and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

In Table 14 we see that among the subregions, Central and Southern Appalachia had the largest 

industrial shares for this category in 2017, at 6.3 percent of total employment. Nonmetro areas adjacent 

to small metros had the largest share based on metro designation, at 6.3 percent of total employment, 

though the differences across the designations are slight.

The Appalachian portions of Georgia (6.6 percent) and Alabama (6.3 percent) had the largest shares in 

the Region in 2017. Appalachian Maryland had the smallest share (5.2 percent), with similar numbers 

found in both Appalachian New York (5.3 percent) and West Virginia (5.3 percent).

Figure 37 then displays the county-level industrial shares throughout the Region.

7.8%

2.1%

7.7%

4.5%

-0.1%

3.7%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 61

Table 14: Employment and industrial shares, Personal and Other Services, 2002, 2007, 2012, and 2017

Personal, Other Services Employment (thousands) Industrial Share

2002 2007 2012 2017 2002 2007 2012 2017

United States 9,431 10,162 10,376 11,170 5.7 5.7 5.8 5.7

Appalachian Region 732 765 765 793 6.0 5.8 6.0 5.9

Non-Appalachian U.S. 8,699 9,397 9,611 10,377 5.7 5.6 5.8 5.7

Subregions

Northern Appalachia 264 262 253 255 6.0 5.8 5.6 5.6

North Central Appalachia 65 66 62 61 6.0 5.7 5.5 5.4

Central Appalachia 46 47 48 47 6.1 6.0 6.2 6.3

South Central Appalachia 142 152 151 157 5.9 5.8 6.1 5.9

Southern Appalachia 214 238 251 273 5.9 5.9 6.4 6.3

County Types

Large Metros (pop. 1 million +) 177 192 195 210 6.2 6.1 6.2 6.2

Small Metros (pop. <1 million) 313 327 326 337 5.7 5.6 5.7 5.6

Nonmetro, Adjacent to Large Metros 62 64 62 62 6.1 6.0 6.1 6.0

Nonmetro, Adjacent to Small Metros 113 115 113 114 6.4 6.2 6.4 6.3

Rural (nonmetro, not adj. to a metro) 67 67 68 69 5.7 5.6 5.7 5.8

Alabama 151 163 168 172 6.4 6.3 6.7 6.5

Appalachian Alabama 96 102 104 108 6.3 6.1 6.5 6.3

Non-Appalachian Alabama 56 61 64 65 6.6 6.6 7.2 6.9

Georgia 269 314 344 381 5.5 5.7 6.4 6.3

Appalachian Georgia 69 85 91 104 6.0 6.0 6.7 6.6

Non-Appalachian Georgia 200 229 253 276 5.4 5.6 6.3 6.1

Kentucky 122 128 128 132 5.4 5.3 5.4 5.3

Appalachian Kentucky 28 29 30 29 5.8 5.8 6.0 6.1

Non-Appalachian Kentucky 94 99 99 103 5.3 5.2 5.2 5.1

Maryland 185 202 204 216 5.9 5.9 5.9 5.8

Appalachian Maryland 8 8 7 7 6.0 5.6 5.2 5.2

Non-Appalachian Maryland 177 194 197 209 5.9 5.9 6.0 5.9

Mississippi 80 84 90 95 5.5 5.4 5.9 6.0

Appalachian Mississippi 16 17 18 19 5.3 5.4 5.9 5.9

Non-Appalachian Mississippi 65 67 71 76 5.6 5.5 5.9 6.0

New York 584 635 667 700 5.6 5.7 5.8 5.6

Appalachian New York 29 29 27 28 5.2 5.2 5.1 5.3

Non-Appalachian New York 555 605 639 672 5.7 5.8 5.9 5.6

North Carolina 271 303 306 334 5.6 5.6 5.7 5.6

Appalachian North Carolina 51 54 54 56 5.9 5.9 6.2 6.0

Non-Appalachian North Carolina 220 249 252 278 5.5 5.5 5.6 5.6

Ohio 372 366 359 369 5.6 5.4 5.4 5.3

Appalachian Ohio 58 56 55 55 6.2 6.1 6.1 6.0

Non-Appalachian Ohio 315 309 304 314 5.5 5.3 5.3 5.2

Pennsylvania 400 409 408 425 5.8 5.6 5.6 5.5

Appalachian Pennsylvania 188 187 181 182 6.1 5.8 5.7 5.6

Non-Appalachian Pennsylvania 212 222 227 243 5.6 5.5 5.6 5.5

South Carolina 131 142 151 165 5.8 5.7 6.2 6.0

Appalachian South Carolina 33 36 38 42 5.4 5.5 5.9 5.7

Non-Appalachian South Carolina 97 106 113 124 5.9 5.8 6.3 6.1

Tennessee 202 218 231 246 5.9 5.9 6.4 6.1

Appalachian Tennessee 84 90 90 94 5.9 5.9 6.1 6.0

Non-Appalachian Tennessee 118 129 141 152 5.9 5.9 6.5 6.3

Virginia 254 279 289 310 5.8 5.7 5.9 6.0

Appalachian Virginia 21 22 21 21 5.8 5.8 5.8 5.8

Non-Appalachian Virginia 233 257 268 290 5.7 5.7 6.0 6.0

West Virginia (entire state) 52 51 48 47 5.9 5.6 5.2 5.3

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 62

Figure 37: Percentage of total employment in the Appalachian Region, Personal and Other Services, 

2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 63

Construction

This sector includes all establishments involved with the building of new structures, roads, and additions

as well as reconstruction and repairs. Construction involving residential and nonresidential structures 

(e.g., homes and office buildings), as well as heavy construction (e.g., bridges and pipelines) are both 

included. Establishments related to specialty trade contracting (e.g., plumbing and carpentry) also 

belong to this category.

Figure 38 shows the changes in Construction’s industrial shares over time. For both the Region and the 

United States as a whole, the industry saw a decline during the Great Recession, and though things have 

steadied since then—both geographies have seen a slight increase since 2010—industrial shares in 2017 

were lower than those in 2002. For Appalachia, the industrial share dropped from 6.3 percent in 2002 to 

5.8 percent in 2017; for the United States as a whole, the industrial share fell from 5.9 percent to 5.4 

percent over the same time period.

Figure 38: Industrial share, Construction, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Employment growth in Construction was similar for Appalachia and the country overall during the 2002–

2007 period; the subsequent declines in the 2007–2012 period were also comparable. In the most 

recent period, Construction sector employment growth in the United States overall (19 percent) was 

greater than in the Appalachian Region (7.2 percent).

5.9%

5.4%

6.3%

5.8%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 64

Figure 39: Percent change in employment, Construction, 2002–2007, 2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Among the subregions, Southern (6.2 percent) and South Central Appalachia (5.8 percent) had the 

largest shares of employment dedicated to Construction in 2017. Based on metro designations, counties 

in large metro areas had the largest industrial shares in the sector, at 6.6 percent.

For nine of the 12 states in the Region with both Appalachian and non-Appalachian portions, the 

Appalachian portions had larger shares in their respective states in 2017. The Appalachian portions of 

Georgia (7.5 percent), North Carolina (6.4 percent), and Ohio (6.4 percent) had the largest shares. 

Appalachian New York (4.7 percent) and Appalachian Virginia (4.8 percent) had the smallest. Figure 40

then displays the county-level industrial shares throughout the Region.

Figure 40 then displays the county-level industrial shares throughout the Region.

17.9%

-21.6%

19.0%

16.4%

-19.3%

7.2%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 65

Table 15: Employment and industrial shares, Construction, 2002, 2007, 2012, and 2017

Construction Employment (thousands) Industrial Share

2002 2007 2012 2017 2002 2007 2012 2017

United States 9,669 11,399 8,935 10,636 5.9 6.3 5.0 5.4

Appalachian Region 770 896 723 775 6.3 6.8 5.6 5.8

Non-Appalachian U.S. 8,899 10,503 8,213 9,861 5.8 6.3 4.9 5.4

Subregions

Northern Appalachia 238 258 234 247 5.4 5.7 5.2 5.4

North Central Appalachia 68 75 66 63 6.3 6.6 5.8 5.5

Central Appalachia 45 50 44 40 5.9 6.4 5.6 5.4

South Central Appalachia 160 197 144 155 6.6 7.6 5.8 5.8

Southern Appalachia 259 315 237 270 7.2 7.8 6.0 6.2

County Types

Large Metros (pop. 1 million +) 208 240 194 223 7.3 7.6 6.2 6.6

Small Metros (pop. <1 million) 318 374 299 319 5.8 6.4 5.2 5.3

Nonmetro, Adjacent to Large Metros 60 70 58 60 5.9 6.6 5.7 5.8

Nonmetro, Adjacent to Small Metros 114 131 102 106 6.4 7.1 5.8 5.8

Rural (nonmetro, not adj. to a metro) 70 80 70 68 6.0 6.7 5.9 5.7

Alabama 153 183 137 144 6.5 7.0 5.5 5.4

Appalachian Alabama 100 117 90 94 6.6 7.0 5.6 5.5

Non-Appalachian Alabama 53 67 47 50 6.3 7.1 5.2 5.3

Georgia 302 371 262 323 6.2 6.8 4.9 5.3

Appalachian Georgia 102 131 93 117 8.8 9.3 6.8 7.5

Non-Appalachian Georgia 200 240 170 205 5.4 5.9 4.2 4.6

Kentucky 130 142 118 129 5.7 5.9 4.9 5.1

Appalachian Kentucky 28 31 26 26 5.8 6.1 5.4 5.4

Non-Appalachian Kentucky 102 111 91 103 5.7 5.8 4.8 5.1

Maryland 215 255 206 239 6.8 7.4 6.0 6.5

Appalachian Maryland 9 10 7 7 6.5 7.1 5.3 5.3

Non-Appalachian Maryland 206 245 199 232 6.8 7.4 6.0 6.5

Mississippi 86 105 86 84 5.9 6.9 5.7 5.3

Appalachian Mississippi 17 19 19 17 5.6 6.1 6.2 5.4

Non-Appalachian Mississippi 70 87 67 66 6.0 7.0 5.5 5.2

New York 448 516 471 556 4.3 4.7 4.1 4.5

Appalachian New York 24 27 25 25 4.3 4.7 4.5 4.7

Non-Appalachian New York 424 490 446 531 4.3 4.7 4.1 4.5

North Carolina 328 404 293 345 6.8 7.4 5.5 5.8

Appalachian North Carolina 64 79 53 60 7.4 8.5 6.1 6.4

Non-Appalachian North Carolina 264 325 240 286 6.6 7.2 5.3 5.7

Ohio 352 364 307 347 5.3 5.4 4.7 5.0

Appalachian Ohio 58 60 52 59 6.2 6.5 5.8 6.4

Non-Appalachian Ohio 295 303 256 288 5.2 5.2 4.5 4.7

Pennsylvania 367 412 362 394 5.3 5.7 5.0 5.1

Appalachian Pennsylvania 171 184 169 175 5.5 5.8 5.3 5.4

Non-Appalachian Pennsylvania 196 228 193 219 5.1 5.6 4.7 4.9

South Carolina 155 184 127 158 6.9 7.4 5.2 5.7

Appalachian South Carolina 41 48 34 41 6.8 7.4 5.3 5.6

Non-Appalachian South Carolina 114 136 93 117 7.0 7.4 5.1 5.8

Tennessee 199 247 196 219 5.8 6.7 5.4 5.5

Appalachian Tennessee 90 112 86 90 6.3 7.3 5.8 5.8

Non-Appalachian Tennessee 109 135 110 129 5.5 6.2 5.1 5.3

Virginia 291 343 267 289 6.6 7.0 5.5 5.6

Appalachian Virginia 20 23 18 17 5.6 6.1 5.1 4.8

Non-Appalachian Virginia 270 319 248 271 6.7 7.1 5.5 5.6

West Virginia (entire state) 49 56 50 46 5.6 6.1 5.4 5.1

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 66

Figure 40: Percentage of total employment in the Appalachian Region, Construction, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 67

Education and Information Services

This category includes all private educational institutions, including elementary and high schools, 

colleges and universities, and professional schools. Computer training services, driving schools, tutoring, 

and vocational training are also included. The information component of the category includes all 

establishments engaged in producing and distributing information and data, which includes Internet 

service providers, telecommunications, data processing, broadcasting, and publishing services.

As seen in Figure 41, little change occurred over the past 15 years in terms of percentage of overall

employment dedicated to the sector. Industrial shares in 2017 for both the Region and the United States 

overall were virtually unchanged from those in 2002; the Region’s share decreased from 3.3 percent to 

3.2 percent over the time period, and the country’s share from 4.2 percent to 4.1 percent.

Figure 41: Industrial share, Education and Information Services, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

4.2% 4.1%

3.3%

3.2%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 68

Figure 42 shows employment growth in the sector over the three recent time periods. The Region 

experienced a slight decline during the 2007–2012 period, whereas the country overall saw growth. And 

then in the most recent time period, the United States saw much faster growth than did Appalachia (8.7 

percent compared to 2.4 percent).

Figure 42: Percent change in employment, Education and Information Services, 2002–2007, 

2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Among the subregions, in 2017, Northern Appalachia had the largest share of its employment engaged 

in the Education and Information Services sector (4.2 percent), which was higher than the share for the 

United States as a whole (4.1 percent). North Central (2.5 percent) and Central Appalachia (2.3 percent) 

had the lowest shares. A pattern exists based on metro designation; as we move from large metro areas 

(4.3 percent) to rural areas (2.5 percent), industrial shares tend to drop.

Only in South Carolina was the industrial share in the Appalachian portion of the state (3.6 percent)

higher than that in the non-Appalachian portion (2.7 percent) in 2017. The Appalachian portions of New 

York (5.4 percent) and Pennsylvania (4.4 percent) had the highest shares in the Region, though these 

were still lower than the non-Appalachian portions of the two states (6.6 percent and 5.9 percent, 

respectively).

Figure 43 then displays the county-level industrial shares throughout the Region.

5.8%

2.0%

8.7%

5.6%

-0.5%

2.4%

-2%

0%

2%

4%

6%

8%

10%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 69

Table 16: Employment and ind. shares, Education Information Services, 2002, 2007, 2012, and 2017

Education, Information Services Employment (thousands) Industrial Share

2002 2007 2012 2017 2002 2007 2012 2017

United States 6,890 7,287 7,430 8,075 4.2 4.1 4.2 4.1

Appalachian Region 401 423 421 432 3.3 3.2 3.3 3.2

Non-Appalachian U.S. 6,489 6,864 7,009 7,643 4.2 4.1 4.2 4.2

Subregions

Northern Appalachia 188 192 189 190 4.3 4.2 4.2 4.2

North Central Appalachia 30 30 29 28 2.8 2.6 2.5 2.5

Central Appalachia 18 17 17 17 2.4 2.2 2.2 2.3

South Central Appalachia 64 74 73 74 2.6 2.8 2.9 2.8

Southern Appalachia 101 110 113 122 2.8 2.7 2.9 2.8

County Types

Large Metros (pop. 1 million +) 130 136 139 147 4.6 4.3 4.4 4.3

Small Metros (pop. <1 million) 182 196 190 190 3.3 3.3 3.3 3.2

Nonmetro, Adjacent to Large Metros 20 21 21 22 2.0 2.0 2.1 2.1

Nonmetro, Adjacent to Small Metros 40 42 42 43 2.3 2.3 2.3 2.4

Rural (nonmetro, not adj. to a metro) 28 28 29 29 2.4 2.4 2.5 2.5

Alabama 64 67 66 69 2.7 2.6 2.7 2.6

Appalachian Alabama 41 42 42 42 2.7 2.5 2.6 2.5

Non-Appalachian Alabama 23 25 25 26 2.7 2.6 2.8 2.8

Georgia 225 226 228 263 4.6 4.1 4.2 4.3

Appalachian Georgia 35 40 42 47 3.0 2.9 3.1 3.0

Non-Appalachian Georgia 190 185 187 215 5.1 4.5 4.6 4.8

Kentucky 67 70 71 69 2.9 2.9 3.0 2.7

Appalachian Kentucky 13 12 12 12 2.6 2.4 2.4 2.5

Non-Appalachian Kentucky 54 58 59 56 3.0 3.0 3.1 2.8

Maryland 139 150 147 157 4.4 4.4 4.3 4.3

Appalachian Maryland 4 4 3 4 2.8 3.1 2.5 2.5

Non-Appalachian Maryland 135 146 144 154 4.5 4.4 4.4 4.3

Mississippi 36 38 41 40 2.5 2.5 2.7 2.5

Appalachian Mississippi 5 6 6 6 1.6 1.9 2.1 2.0

Non-Appalachian Mississippi 31 32 34 34 2.7 2.6 2.8 2.7

New York 671 704 743 808 6.5 6.4 6.5 6.5

Appalachian New York 30 32 31 29 5.4 5.8 5.7 5.4

Non-Appalachian New York 641 672 712 780 6.5 6.4 6.5 6.6

North Carolina 159 191 208 235 3.3 3.5 3.9 4.0

Appalachian North Carolina 25 29 31 29 3.0 3.2 3.5 3.1

Non-Appalachian North Carolina 134 162 177 206 3.4 3.6 3.9 4.1

Ohio 224 240 236 241 3.4 3.5 3.6 3.4

Appalachian Ohio 22 22 21 20 2.4 2.4 2.3 2.1

Non-Appalachian Ohio 203 218 215 221 3.5 3.7 3.8 3.6

Pennsylvania 361 380 384 406 5.2 5.2 5.3 5.3

Appalachian Pennsylvania 137 140 141 144 4.5 4.4 4.4 4.4

Non-Appalachian Pennsylvania 223 240 244 262 5.9 5.9 6.0 5.9

South Carolina 60 68 73 80 2.7 2.7 3.0 2.9

Appalachian South Carolina 20 22 24 26 3.3 3.3 3.7 3.6

Non-Appalachian South Carolina 40 47 49 54 2.4 2.5 2.7 2.7

Tennessee 111 118 123 137 3.2 3.2 3.4 3.4

Appalachian Tennessee 33 39 37 41 2.4 2.6 2.5 2.6

Non-Appalachian Tennessee 77 78 85 96 3.9 3.6 4.0 4.0

Virginia 187 192 184 190 4.2 3.9 3.8 3.7

Appalachian Virginia 9 10 9 9 2.5 2.6 2.5 2.4

Non-Appalachian Virginia 177 182 175 182 4.4 4.0 3.9 3.8

West Virginia (entire state) 26 25 24 23 3.0 2.7 2.6 2.6

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 70

Figure 43: Percentage of total employment in the Appalachian Region, Education and Information 

Services, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 71

Farming and Forestry

This industry includes establishments engaged in the production of crops and plants such as farms and 

greenhouse, as well as those involved in the keeping, grazing, or feeding of animals (e.g., ranches, 

dairies, and hatcheries). The forestry component includes establishments engaged in the harvesting of 

timber, as well as all those engaged in harvesting fish and other animals from their natural habitats.

As seen in Figure 44, the sector’s industrial shares for the both the Region and the United States as a 

whole declined between 2002 and 2017; the Region’s shares dropped from 2.9 percent to 2.4 percent, 

and the United States’ shares overall from 2.3 to 1.8 percent. The two geographies followed a similar 

pattern over the past 15 years, with the gap between the two remaining stable.

Figure 44: Industrial share, Farming and Forestry, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

2.3%

1.8%

2.9%

2.4%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 72

In Figure 45, we see that Farming and Forestry employment growth in the Region was generally slower

than in the nation as a whole; the drops were sharper and the increase was slower. In the most recent 

2012–2017 period, sector employment growth in Appalachia was slower than the national level (0.7 

percent compared to 1.3 percent).

Figure 45: Percent change in employment, Farming and Forestry, 2002–2007, 2007–2012, 

and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

In Table 17 we see that the central parts of the Region generally had the largest industrial shares in 

2017. Central Appalachia had the highest share among the subregions, at 6.3 percent of total 

employment, with North Central Appalachia (3.4 percent) having the second highest share. As one might 

expect, the nonmetro and rural areas of the Region had the largest shares in this industry, ranging from 

4.4 percent in nonmetro counties adjacent to large metro areas, to 5.2 percent in both nonmetro 

counties adjacent to small metro areas as well as rural areas.

Appalachian Kentucky (6.8 percent in 2017) had the largest share of employment dedicated to the 

sector, followed by the Appalachian portions of Virginia (4.8 percent) and Mississippi (4.6 percent). Only 

in three states, all of which are found in the Southern subregion, were the industrial shares for Farming 

and Forestry lower in the Appalachian portions than in the non-Appalachian portions: Alabama, Georgia, 

and South Carolina. 

Figure 46 then displays the county-level industrial shares throughout the Region.

-6.3%

-0.1%

1.3%

-6.7%

-4.1%

0.7%

-8%

-6%

-4%

-2%

0%

2%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 73

Table 17: Employment and industrial shares, Farming and Forestry, 2002, 2007, 2012, and 2017

Farming, Forestry Employment (thousands) Industrial Share

2002 2007 2012 2017 2002 2007 2012 2017

United States 3,743 3,509 3,504 3,552 2.3 2.0 2.0 1.8

Appalachian Region 361 337 323 325 2.9 2.6 2.5 2.4

Non-Appalachian U.S. 3,383 3,172 3,182 3,227 2.2 1.9 1.9 1.8

Subregions

Northern Appalachia 96 90 90 92 2.2 2.0 2.0 2.0

North Central Appalachia 41 41 40 39 3.8 3.6 3.5 3.4

Central Appalachia 55 49 47 47 7.2 6.2 6.1 6.3

South Central Appalachia 85 75 69 68 3.5 2.9 2.8 2.6

Southern Appalachia 84 81 77 79 2.3 2.0 2.0 1.8

County Types

Large Metros (pop. 1 million +) 33 30 28 29 1.1 1.0 0.9 0.8

Small Metros (pop. <1 million) 106 99 93 94 1.9 1.7 1.6 1.6

Nonmetro, Adjacent to Large Metros 51 48 45 45 5.1 4.5 4.5 4.4

Nonmetro, Adjacent to Small Metros 102 96 94 95 5.7 5.2 5.3 5.2

Rural (nonmetro, not adj. to a metro) 69 63 62 62 5.9 5.3 5.3 5.2

Alabama 68 66 61 64 2.9 2.5 2.4 2.4

Appalachian Alabama 39 39 35 37 2.6 2.3 2.2 2.2

Non-Appalachian Alabama 29 27 26 27 3.4 2.9 2.9 2.9

Georgia 83 78 76 82 1.7 1.4 1.4 1.3

Appalachian Georgia 21 20 19 20 1.8 1.4 1.4 1.3

Non-Appalachian Georgia 62 58 57 62 1.7 1.4 1.4 1.4

Kentucky 114 102 97 98 5.0 4.2 4.1 3.9

Appalachian Kentucky 38 34 33 33 7.8 6.8 6.8 6.8

Non-Appalachian Kentucky 76 69 64 65 4.3 3.6 3.4 3.2

Maryland 26 22 23 24 0.8 0.7 0.7 0.7

Appalachian Maryland 3 3 3 3 2.0 1.8 1.8 1.9

Non-Appalachian Maryland 23 20 21 22 0.8 0.6 0.6 0.6

Mississippi 64 59 55 55 4.4 3.8 3.6 3.5

Appalachian Mississippi 16 15 15 15 5.3 5.0 4.8 4.6

Non-Appalachian Mississippi 48 43 40 41 4.1 3.5 3.3 3.2

New York 73 64 66 69 0.7 0.6 0.6 0.6

Appalachian New York 19 17 16 17 3.5 2.9 2.9 3.1

Non-Appalachian New York 54 47 50 52 0.5 0.4 0.5 0.4

North Carolina 101 90 87 91 2.1 1.6 1.6 1.5

Appalachian North Carolina 25 23 22 22 2.9 2.5 2.5 2.3

Non-Appalachian North Carolina 77 67 65 69 1.9 1.5 1.4 1.4

Ohio 101 96 101 99 1.5 1.4 1.5 1.4

Appalachian Ohio 33 31 33 33 3.5 3.3 3.7 3.6

Non-Appalachian Ohio 68 65 68 66 1.2 1.1 1.2 1.1

Pennsylvania 97 93 96 99 1.4 1.3 1.3 1.3

Appalachian Pennsylvania 57 56 54 56 1.9 1.7 1.7 1.7

Non-Appalachian Pennsylvania 40 37 42 44 1.1 0.9 1.0 1.0

South Carolina 41 39 39 42 1.8 1.6 1.6 1.5

Appalachian South Carolina 8 7 7 7 1.3 1.1 1.1 1.0

Non-Appalachian South Carolina 33 31 32 35 2.0 1.7 1.8 1.7

Tennessee 105 92 83 82 3.1 2.5 2.3 2.0

Appalachian Tennessee 56 49 43 43 3.9 3.2 2.9 2.7

Non-Appalachian Tennessee 50 44 39 40 2.5 2.0 1.8 1.6

Virginia 71 63 64 63 1.6 1.3 1.3 1.2

Appalachian Virginia 21 18 17 17 5.6 4.7 4.8 4.8

Non-Appalachian Virginia 50 45 46 46 1.2 1.0 1.0 0.9

West Virginia (entire state) 26 27 24 24 3.0 2.9 2.7 2.7

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 74

Figure 46: Percentage of total employment in the Appalachian Region, Farming and Forestry, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 75

Federal Government and Military

This category includes all employees of the federal government, regardless of establishment 

classification, meaning that this sector represents a wide range of establishments: legislative bodies, 

correctional institutions, public assistance services, the U.S. Postal Service, and air traffic controllers, 

among many others. All military personnel are included in this category as well, with personnel 

deployed abroad being counted in their home base or port.

As seen in Figure 47, industrial shares for this sector dropped from 2002 to 2017 for both the Region and 

the United States as a whole. In Appalachia, the industry accounted for 2.1 percent of total employment 

in 2002, but just 1.8 percent in 2017. In the country overall, the industrial share dropped from 3 percent 

to 2.4 percent over the same time period. As one might expect, Federal Government and Military’s

share of total employment increased over the course of the Great Recession, as the nature of the 

category means that it is largely removed from the cyclical nature of the overall economy.

Figure 47: Industrial share, Federal Government and Military, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

3.0%

2.4%

2.1%

1.8%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 76

In Figure 48, we see that employment in the sector declined during each of the three time periods in the 

Appalachian Region. The United States as a whole saw declines during the 2002–2007 and 2012–2017 

periods, though the decreases were not as steep as those which took place in the Region. And while the 

country overall experienced growth of 2.2 percent during the 2007–2012 period, the Region saw a 

decline of 0.6 percent.

Figure 48: Percent change in employment, Federal Government and Military, 2002–2007, 2007–2012, 

and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Among the subregions, North Central (3.0 percent) and Central Appalachia (2.1 percent) had the largest 

industrial shares for this sector in 2017. Rural areas had the largest industrial share in the Region, at 2.1 

percent, though the differences based on metro designation are small.

In not one of the Region’s 12 states with both Appalachian and non-Appalachian portions was the 

industrial share larger in the Appalachian portion than in the non-Appalachian portion, and only in 

Alabama were the two equal (3.1 percent). West Virginia, the only state entirely within the Region, had 

the largest industrial share, with 3.7 percent of its overall employment in 2017 classified as being part of 

the Federal Government and Military.

Figure 49 then displays the county-level industrial shares throughout the Region.

-1.8%

2.2%

-2.9% -2.7%

-0.6%

-3.9%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 77

Table 18: Employment and ind. shares, Federal Government and Military, 2002, 2007, 2012, and 2017

Federal Government, Military Employment (thousands) Industrial Share

2002 2007 2012 2017 2002 2007 2012 2017

United States 4,913 4,823 4,931 4,786 3.0 2.7 2.8 2.4

Appalachian Region 259 252 250 241 2.1 1.9 2.0 1.8

Non-Appalachian U.S. 4,654 4,571 4,681 4,545 3.0 2.7 2.8 2.5

Subregions

Northern Appalachia 78 73 69 67 1.8 1.6 1.5 1.5

North Central Appalachia 34 34 34 34 3.1 3.0 3.0 3.0

Central Appalachia 17 17 17 16 2.2 2.1 2.2 2.1

South Central Appalachia 43 40 42 39 1.8 1.5 1.7 1.5

Southern Appalachia 88 88 88 84 2.4 2.2 2.2 1.9

County Types

Large Metros (pop. 1 million +) 57 55 52 53 2.0 1.7 1.7 1.6

Small Metros (pop. <1 million) 126 125 128 121 2.3 2.1 2.2 2.0

Nonmetro, Adjacent to Large Metros 17 16 16 15 1.7 1.5 1.5 1.5

Nonmetro, Adjacent to Small Metros 32 30 30 27 1.8 1.6 1.7 1.5

Rural (nonmetro, not adj. to a metro) 26 25 25 24 2.3 2.1 2.2 2.1

Alabama 88 88 87 82 3.7 3.4 3.5 3.1

Appalachian Alabama 55 56 57 53 3.6 3.4 3.5 3.1

Non-Appalachian Alabama 34 32 30 29 4.0 3.4 3.4 3.1

Georgia 193 193 202 192 4.0 3.5 3.7 3.2

Appalachian Georgia 16 16 15 16 1.4 1.2 1.1 1.0

Non-Appalachian Georgia 177 176 187 176 4.8 4.3 4.6 3.9

Kentucky 85 88 95 81 3.7 3.6 4.0 3.2

Appalachian Kentucky 9 10 10 9 1.9 2.0 2.0 1.9

Non-Appalachian Kentucky 75 78 85 72 4.2 4.1 4.5 3.5

Maryland 210 203 225 226 6.7 5.9 6.6 6.1

Appalachian Maryland 2 2 2 2 1.6 1.4 1.5 1.4

Non-Appalachian Maryland 208 201 223 224 6.9 6.1 6.8 6.3

Mississippi 61 56 56 53 4.2 3.7 3.7 3.3

Appalachian Mississippi 9 8 8 8 2.9 2.6 2.6 2.4

Non-Appalachian Mississippi 52 48 48 45 4.5 3.9 4.0 3.5

New York 195 184 179 172 1.9 1.7 1.6 1.4

Appalachian New York 6 6 5 5 1.2 1.0 1.0 0.9

Non-Appalachian New York 189 178 174 167 1.9 1.7 1.6 1.4

North Carolina 183 193 210 202 3.8 3.6 3.9 3.4

Appalachian North Carolina 11 11 12 11 1.3 1.2 1.4 1.2

Non-Appalachian North Carolina 172 183 198 191 4.3 4.1 4.4 3.8

Ohio 120 112 115 114 1.8 1.6 1.7 1.6

Appalachian Ohio 13 12 12 12 1.5 1.3 1.4 1.3

Non-Appalachian Ohio 106 99 102 102 1.9 1.7 1.8 1.7

Pennsylvania 152 143 137 133 2.2 2.0 1.9 1.7

Appalachian Pennsylvania 60 57 54 52 2.0 1.8 1.7 1.6

Non-Appalachian Pennsylvania 91 86 83 80 2.4 2.1 2.0 1.8

South Carolina 85 83 87 87 3.8 3.4 3.6 3.1

Appalachian South Carolina 8 8 8 8 1.4 1.2 1.2 1.1

Non-Appalachian South Carolina 77 76 79 78 4.7 4.1 4.4 3.9

Tennessee 77 73 74 70 2.3 2.0 2.0 1.8

Appalachian Tennessee 30 29 29 27 2.1 1.9 2.0 1.7

Non-Appalachian Tennessee 47 44 45 43 2.4 2.0 2.1 1.8

Virginia 333 334 336 335 7.5 6.9 6.9 6.4

Appalachian Virginia 6 5 5 5 1.6 1.4 1.3 1.3

Non-Appalachian Virginia 327 329 331 330 8.1 7.3 7.4 6.8

West Virginia (entire state) 32 32 33 33 3.7 3.5 3.6 3.7

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 78

Figure 49: Percentage of total employment in the Appalachian Region, Federal Government and

Military, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 79

Coal, Gas, and Other Mining

This category includes all establishments engaged in the extraction of mineral solids (e.g., coal), liquid 

minerals, and gases (e.g., natural gas), and includes quarrying, well operations, and beneficiating. Also 

included are establishments engaged in preparation activities that typically take place at the mine site.

Figure 50 indicates that there was a slight increase in industrial shares between 2002 and 2017, with 

both the Region and the United States as a whole following the same general trend: an increase from 

2002 to 2012; a decline from 2012 to 2016, and then a slight uptick from 2016 to 2017. Appalachia’s 

industrial share in the sector was 0.8 percent in 2002, which has since risen to 1 percent in 2017; for the 

United States as a whole, the sector’s industrial share went from 0.5 percent in 2002 to 0.8 percent in 

2017.

Figure 50: Industrial share, Coal, Gas, and Other Mining, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

0.5%

0.8%

0.8%

1.0%

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 80

In Figure 51, we see that changes in this industry’s employment have been significant in recent years. In 

the 2002–2007 and 2007–2012 periods, the country as a whole saw faster growth than the Appalachian 

Region. However, in the most recent period, from 2012 to 2017, both the United States and the Region 

saw declines, at 2.7 percent and 17.3 percent, respectively.

Figure 51: Percent change in employment, Coal, Gas, and Other Mining, 2002–2007, 2007–2012, 

and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

In Table 19 we see clear patterns at the subregion level, with Central (3 percent) and North Central 

Appalachia (2.8 percent) having the highest industrial shares in the Region in 2017. Meanwhile, South 

Central and Southern Appalachia (0.3 percent in both) had much lower shares of total employment 

engaged in the industry. We also see a clear pattern based on metro status: as we move away from 

large metro areas and into rural areas, industrial shares in Coal, Gas, and Other Mining steadily 

increased, from 0.8 percent of total employment to 2.5 percent.

Throughout the Region, in each of the states, the industrial shares in the Appalachian portions either

matched or exceeded those in the non-Appalachian portions in 2017. West Virginia had the largest 

industrial share in the Region, with 4 percent of its total employment engaged in the sector. The

Appalachian portions of Kentucky (2.2 percent) and Ohio (1.8 percent) ranked second and third, 

respectively. 

Figure 52 then displays the county-level industrial shares throughout the Region.

35.4%

52.8%

-2.7%

22.0%

42.9%

-17.3%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 81

Table 19: Employment and industrial shares, Coal, Gas, and Other Mining, 2002, 2007, 2012, and 2017

Coal, Gas, Other Mining Employment (thousands) Industrial Share

2002 2007 2012 2017 2002 2007 2012 2017

United States 747 1,012 1,547 1,505 0.5 0.6 0.9 0.8

Appalachian Region 97 118 169 140 0.8 0.9 1.3 1.0

Non-Appalachian U.S. 651 894 1,378 1,365 0.4 0.5 0.8 0.7

Subregions

Northern Appalachia 31 39 71 63 0.7 0.9 1.6 1.4

North Central Appalachia 20 26 38 32 1.8 2.3 3.3 2.8

Central Appalachia 31 35 37 23 4.1 4.4 4.9 3.0

South Central Appalachia 5 6 7 7 0.2 0.2 0.3 0.3

Southern Appalachia 10 12 15 14 0.3 0.3 0.4 0.3

County Types

Large Metros (pop. 1 million +) 13 15 27 26 0.4 0.5 0.9 0.8

Small Metros (pop. <1 million) 25 31 45 35 0.5 0.5 0.8 0.6

Nonmetro, Adjacent to Large Metros 10 12 19 15 1.0 1.2 1.9 1.5

Nonmetro, Adjacent to Small Metros 18 23 35 33 1.0 1.2 2.0 1.8

Rural (nonmetro, not adj. to a metro) 31 36 43 29 2.7 3.0 3.7 2.5

Alabama 9 11 14 12 0.4 0.4 0.6 0.5

Appalachian Alabama 7 8 11 9 0.5 0.5 0.7 0.5

Non-Appalachian Alabama 2 2 3 4 0.2 0.2 0.4 0.4

Georgia 9 10 10 11 0.2 0.2 0.2 0.2

Appalachian Georgia 2 2 3 3 0.2 0.2 0.2 0.2

Non-Appalachian Georgia 7 7 8 8 0.2 0.2 0.2 0.2

Kentucky 23 27 30 21 1.0 1.1 1.3 0.8

Appalachian Kentucky 15 17 17 11 3.1 3.4 3.4 2.2

Non-Appalachian Kentucky 7 10 14 10 0.4 0.5 0.7 0.5

Maryland 3 4 5 5 0.1 0.1 0.1 0.1

Appalachian Maryland 1 1 1 1 0.5 0.4 0.5 0.4

Non-Appalachian Maryland 2 3 4 4 0.1 0.1 0.1 0.1

Mississippi 8 10 16 17 0.5 0.7 1.1 1.1

Appalachian Mississippi 1 1 1 1 0.2 0.2 0.4 0.4

Non-Appalachian Mississippi 7 10 15 15 0.6 0.8 1.2 1.2

New York 9 12 17 17 0.1 0.1 0.2 0.1

Appalachian New York 2 3 4 3 0.4 0.5 0.7 0.6

Non-Appalachian New York 7 9 14 14 0.1 0.1 0.1 0.1

North Carolina 6 7 9 10 0.1 0.1 0.2 0.2

Appalachian North Carolina 1 2 2 2 0.2 0.2 0.2 0.2

Non-Appalachian North Carolina 4 5 7 7 0.1 0.1 0.2 0.2

Ohio 19 21 34 36 0.3 0.3 0.5 0.5

Appalachian Ohio 9 10 16 17 0.9 1.1 1.8 1.8

Non-Appalachian Ohio 11 11 19 19 0.2 0.2 0.3 0.3

Pennsylvania 25 32 59 51 0.4 0.4 0.8 0.7

Appalachian Pennsylvania 22 28 54 46 0.7 0.9 1.7 1.4

Non-Appalachian Pennsylvania 4 4 5 5 0.1 0.1 0.1 0.1

South Carolina 2 3 4 5 0.1 0.1 0.2 0.2

Appalachian South Carolina 1 1 1 1 0.1 0.1 0.1 0.2

Non-Appalachian South Carolina 2 2 3 4 0.1 0.1 0.2 0.2

Tennessee 6 7 10 10 0.2 0.2 0.3 0.3

Appalachian Tennessee 3 4 5 5 0.2 0.3 0.3 0.3

Non-Appalachian Tennessee 2 3 5 5 0.1 0.1 0.2 0.2

Virginia 11 13 17 14 0.3 0.3 0.3 0.3

Appalachian Virginia 7 7 8 5 1.9 1.8 2.2 1.4

Non-Appalachian Virginia 4 6 9 9 0.1 0.1 0.2 0.2

West Virginia (entire state) 27 35 47 36 3.1 3.8 5.2 4.0

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 82

Figure 52: Percentage of total employment in the Appalachian Region, Coal, Gas, and Other Mining, 

2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 83

Utilities

This category includes all establishments engaged in electric power generation, transmission, and 

distribution; natural gas distribution; steam supply provision and distribution; water treatment and 

distribution; and sewage collection and treatment. Excluded are all establishments operated by a 

federal, state, or local government.

As seen in Figure 53, industrial shares in the Utilities industry dropped slightly from 2002 to 2017. If we 

consider values to the hundredth place, the Region saw its share decrease from 0.47 percent in 2002 to 

0.43 percent in 2017, and the United States at large dropped from 0.36 percent to 0.34 percent over the 

same time period. Given that services offered by establishments in this industry are, by and large,

necessities, it makes intuitive sense that the sector experienced a slight increase in its share of overall 

employment from 2007 to 2010 during the Great Recession—at a time when employment in many other 

industries was declining.

Figure 53: Industrial share, Utilities, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

0.4%

0.3%

0.5%

0.4%

0.0

0.1

0.2

0.3

0.4

0.5

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 84

In terms of employment growth in Utilities, as seen in Figure 54, both the country overall and the 

Appalachian Region saw declines during the earlier two time periods. However, from 2012 to 2017, both 

the United States and Appalachia experienced increases, at 14.9 percent and 11 percent, respectively.

Figure 54: Percent change in employment, Utilities, 2002–2007, 2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Among the Region’s subregions, South Central Appalachia had the smallest industrial share in Utilities in 

2017 (0.2 percent), and North Central Appalachia the largest (0.6 percent). Few differences exist based

on metro designation.

West Virginia (0.7 percent) and Appalachian Mississippi (0.7 percent) had the largest industrial shares in 

the Region in 2017, and Appalachian Tennessee the smallest (0.1 percent). 

Figure 55 then displays the county-level industrial shares throughout the Region.

-3.2%

-0.5%

14.9%

-8.4%

-3.4%

11.0%

-10%

-5%

0%

5%

10%

15%

20%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 85

Table 20: Employment and industrial shares, Utilities, 2002, 2007, 2012, and 2017

Utilities Employment (thousands) Industrial Share

2002 2007 2012 2017 2002 2007 2012 2017

United States 599 581 578 664 0.4 0.3 0.3 0.3

Appalachian Region 58 53 51 57 0.5 0.4 0.4 0.4

Non-Appalachian U.S. 541 527 526 607 0.4 0.3 0.3 0.3

Subregions

Northern Appalachia 24 19 19 21 0.6 0.4 0.4 0.5

North Central Appalachia 9 9 7 7 0.8 0.8 0.6 0.6

Central Appalachia 3 3 3 3 0.4 0.4 0.4 0.4

South Central Appalachia 5 4 4 5 0.2 0.2 0.2 0.2

Southern Appalachia 17 18 18 20 0.5 0.5 0.5 0.5

County Types

Large Metros (pop. 1 million +) 18 16 17 18 0.6 0.5 0.5 0.5

Small Metros (pop. <1 million) 20 18 16 19 0.4 0.3 0.3 0.3

Nonmetro, Adjacent to Large Metros 5 6 5 5 0.5 0.5 0.5 0.5

Nonmetro, Adjacent to Small Metros 9 9 8 9 0.5 0.5 0.4 0.5

Rural (nonmetro, not adj. to a metro) 6 5 5 6 0.5 0.5 0.4 0.5

Alabama 14 14 15 15 0.6 0.5 0.6 0.6

Appalachian Alabama 9 10 10 11 0.6 0.6 0.6 0.6

Non-Appalachian Alabama 5 4 4 5 0.6 0.4 0.5 0.5

Georgia 21 22 21 23 0.4 0.4 0.4 0.4

Appalachian Georgia 4 5 5 6 0.4 0.4 0.3 0.4

Non-Appalachian Georgia 17 17 16 18 0.5 0.4 0.4 0.4

Kentucky 7 7 7 8 0.3 0.3 0.3 0.3

Appalachian Kentucky 2 2 2 2 0.4 0.4 0.4 0.4

Non-Appalachian Kentucky 5 5 5 6 0.3 0.3 0.3 0.3

Maryland 10 10 11 13 0.3 0.3 0.3 0.3

Appalachian Maryland 1 0 0 0 0.4 0.3 0.3 0.3

Non-Appalachian Maryland 10 10 10 12 0.3 0.3 0.3 0.3

Mississippi 8 8 8 9 0.6 0.5 0.5 0.6

Appalachian Mississippi 2 2 2 2 0.5 0.5 0.5 0.7

Non-Appalachian Mississippi 7 6 7 7 0.6 0.5 0.5 0.6

New York 43 40 38 47 0.4 0.4 0.3 0.4

Appalachian New York 3 2 2 2 0.5 0.4 0.4 0.4

Non-Appalachian New York 40 38 36 45 0.4 0.4 0.3 0.4

North Carolina 15 14 13 18 0.3 0.2 0.2 0.3

Appalachian North Carolina 2 2 2 3 0.3 0.2 0.2 0.3

Non-Appalachian North Carolina 12 11 11 15 0.3 0.3 0.2 0.3

Ohio 22 22 20 22 0.3 0.3 0.3 0.3

Appalachian Ohio 6 6 6 5 0.7 0.7 0.6 0.6

Non-Appalachian Ohio 16 16 14 17 0.3 0.3 0.3 0.3

Pennsylvania 32 22 24 28 0.5 0.3 0.3 0.4

Appalachian Pennsylvania 17 13 13 15 0.6 0.4 0.4 0.5

Non-Appalachian Pennsylvania 14 9 10 13 0.4 0.2 0.3 0.3

South Carolina 12 12 12 14 0.5 0.5 0.5 0.5

Appalachian South Carolina 2 2 2 2 0.3 0.3 0.2 0.3

Non-Appalachian South Carolina 10 10 11 12 0.6 0.6 0.6 0.6

Tennessee 4 4 4 5 0.1 0.1 0.1 0.1

Appalachian Tennessee 2 2 2 2 0.1 0.1 0.1 0.1

Non-Appalachian Tennessee 2 2 2 3 0.1 0.1 0.1 0.1

Virginia 12 12 11 13 0.3 0.2 0.2 0.2

Appalachian Virginia 1 1 1 1 0.3 0.3 0.3 0.3

Non-Appalachian Virginia 11 11 10 12 0.3 0.2 0.2 0.2

West Virginia (entire state) 7 6 5 6 0.8 0.7 0.6 0.7

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 86

Figure 55: Percentage of total employment in the Appalachian Region, Utilities, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 87

Chapter 4: Earnings

Overall Earnings

We previously noted that it would be reasonable to assume that if a region comprised a specific

percentage of a country’s population, the region would also comprise that same percentage of the 

country’s employment. Figure 56 shows Appalachia’s percentage of the United States’ population and 

employment over time—which we discussed in Chapter 2—along with a third variable: Appalachia’s

percentage of U.S. earnings. (A quick reminder: Earnings comprise wages and salaries, other labor 

income, proprietors’ income, and personal contributions for social insurance.)

Since 1969, a decreasing percentage of the country’s overall earnings have come to establishments in

Appalachia, dropping from 7.5 percent in 1969 to 5.6 percent in 2017. The Region’s share of 

employment has been higher than its share of earnings in every year of data, and the gap between the 

two has been widening since the late 1970s.

Figure 56: Percentage of U.S. population, employment, and earnings in Appalachia, 1969–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

9.58%

7.86%

8.51%

6.84% 7.51%

5.60%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

1969 1975 1981 1987 1993 1999 2005 2011 2017

Population Jobs Earnings
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 88

A more direct way of examining this trend is seen in Figure 57, which displays Appalachia’s share of the 

country’s earnings relative to its share of the country’s employment (this same exercise was done in 

Chapter 2 with population and employment). The formula is as follows:

AAAAAAAAAAAAAAhii ’ss ssh aaaa oooo UU. SS. ee eeee / AAAAAAAAAAAAAAhii ’ss ssh aaaa oooo UU. SS. ee eeee eeee

In 1969, for example, this ratio was 0.88, with the calculation as follows:

7.51 / 8.51 = 0.88

This ratio was at its highest in 1979, at 0.92, but has since fallen to 0.82 in 2017. The lowest ratio came 

in 2007, when the figure was 0.81. Since then, the figure has remained relatively stable.

Figure 57: Ratio of Appalachia’s share of U.S. earnings to share of U.S. employment, 1969–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

1969, 0.88

1979, 0.92

2007, 0.81

2017, 0.82

0.75

0.80

0.85

0.90

0.95

1969 1975 1981 1987 1993 1999 2005 2011 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 89

Figure 58 charts earnings per employee in Appalachia across all industries, as well as what portion of the

national average this Regional average represents. For example, in 2017, earnings per employee in the 

Region was $46,697, which was 82 percent of the earnings per employee in the United States overall

($57,187). In 1969, average earnings in the Region represented 88 percent of the national average, and 

this gradually increased over the next ten years, to 92 percent in 1979. Over the next two decades, 

however, this figure dropped to 82 percent in 2000. From 2000 to 2017, the percentage remained 

relatively stable, dropping to a low of 81 percent in 2007 before increasing slightly and leveling off at 82

percent over recent years, including in 2017.

Figure 58: Earnings per employee in Appalachia, all industries, 1969–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

0.74

0.76

0.78

0.80

0.82

0.84

0.86

0.88

0.90

0.92

0.94

 $-

 $5,000

 $10,000

 $15,000

 $20,000

 $25,000

 $30,000

 $35,000

 $40,000

 $45,000

 $50,000

1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017

Earnings per Employee

Portion of U.S. average

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 90

Figure 59 introduces earnings growth for all industries across three time periods: 2002–2007, 2007–

2012, and 2012–2017. Though Appalachia experienced growth in earnings during each period, the 

Region’s increases did not match those of the United States as a whole. Interestingly, both geographies 

experienced higher growth in the post-Recession period than in the pre-Recession. Over 2002–2007, the 

Region saw earnings growth of 8.2 percent, and the United States 11.9 percent; in 2012–2017, the 

Region’s earnings grew by 8.6 percent, and the United States’ by 13.3 percent.

Figure 59: Earnings growth, all industries, 2002–2007, 2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

11.9%

2.1%

13.3%

8.2%

0.7%

8.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 91

Earnings per Employee

Earnings per employee also increased over each of the three time periods considered. In fact, as seen in 

Figure 60, earnings per employee grew at a faster rate in Appalachia than in the country as a whole 

during the two most recent periods. Over 2007–2012, earnings per employee grew by 3.1 percent in 

Appalachia and 2.4 percent in the United States; from 2012–2017, earnings per employee grew by 3.7

percent in Appalachia and 3.4 percent in the United States.

Figure 60: Percent change in earnings per employee, all industries, 2002–2007, 2007–2012, and 2012–

2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

2.9%

2.4%

3.4%

1.3%

3.1%

3.7%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 92

A caveat should be noted regarding earnings per employee. First, as we recall from Chapter 2, 

employment growth in the Region was lower than what it was in the United States as a whole during all 

three time periods. Second, when we considered Figure 59—overall earnings growth—we saw that the 

Region lagged behind the United States as a whole in terms of overall earnings. So while earnings per 

employee grew faster in the Region than in the United States as a whole, growth in both overall earnings 

and overall employment was slower in Appalachia. Table 21 includes the growth rates for earnings and 

employment for both Appalachia and the country overall.

Table 21: Earnings and employment growth, 2002–2007, 2007–2012, and 2012–2017

Time Period Appalachian Region United States

Earnings Employment Earnings Employment

2002–2007 8.2% 6.8% 11.9% 8.8%

2007–2012 0.7% -2.3% 2.1% -0.3%

2012–2017 8.6% 4.7% 13.3% 9.6%

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Consider the 2007–2012 period, when the relative spread between the growth percentages in the 

Region (0.7 percent growth in earnings, 2.3 percent decline in employment) was greater than that in the 

United States (2.1 percent growth in earnings, 0.3 percent decline in employment). The dominant force 

at play in the Region was not necessarily a growth in earnings, but rather a decline in employment—and 

thus, due to the larger gap between the two variables in the Region than in the United States overall, 

Appalachia saw the higher growth in earnings per employee.

Consider the 2012–2017 period, as well, when employment grew more slowly in the Region than in the 

country as a whole. Again, as in the 2007–2012 period, the relative spread between earnings and 

employment was larger in Appalachia (8.6 percent growth in earnings, 4.7 percent growth in 

employment) than in the United States (13.3 percent growth in earnings, 9.6 percent growth in 

employment).
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 93

Table 22: Earnings per employee and percent change, all industries, 2002–2017

All Industries Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $52,491 $54,009 $55,324 $57,187 2.9 2.4 3.4

Appalachian Region $43,119 $43,660 $45,015 $46,697 1.3 3.1 3.7

Non-Appalachian U.S. $53,243 $54,825 $56,119 $57,958 3.0 2.4 3.3

Subregions

Northern Appalachia $45,259 $46,366 $47,664 $49,897 2.4 2.8 4.7

North Central Appalachia $40,663 $40,935 $43,518 $44,499 0.7 6.3 2.3

Central Appalachia $36,590 $37,765 $40,086 $38,709 3.2 6.1 -3.4

South Central Appalachia $40,710 $41,410 $43,168 $45,068 1.7 4.2 4.4

Southern Appalachia $44,243 $43,990 $44,554 $46,292 -0.6 1.3 3.9

County Types

Large Metros (pop. 1 million +) $50,054 $49,861 $50,463 $52,772 -0.4 1.2 4.6

Small Metros (pop. <1 million) $43,809 $44,410 $45,971 $47,588 1.4 3.5 3.5

Nonmetro, Adjacent to Large Metros $38,819 $39,711 $41,186 $42,462 2.3 3.7 3.1

Nonmetro, Adjacent to Small Metros $36,727 $36,919 $38,375 $39,761 0.5 3.9 3.6

Rural (nonmetro, not adj. to a metro) $36,433 $37,542 $39,125 $39,052 3.0 4.2 -0.2

Alabama $43,258 $44,334 $44,998 $46,487 2.5 1.5 3.3

Appalachian Alabama $44,805 $45,924 $46,942 $48,356 2.5 2.2 3.0

Non-Appalachian Alabama $40,452 $41,487 $41,505 $43,110 2.6 0.0 3.9

Georgia $51,856 $50,585 $49,487 $52,641 -2.5 -2.2 6.4

Appalachian Georgia $44,776 $42,735 $42,250 $44,747 -4.6 -1.1 5.9

Non-Appalachian Georgia $54,073 $53,300 $51,924 $55,391 -1.4 -2.6 6.7

Kentucky $42,951 $44,283 $45,573 $46,581 3.1 2.9 2.2

Appalachian Kentucky $35,134 $36,023 $37,611 $36,599 2.5 4.4 -2.7

Non-Appalachian Kentucky $45,076 $46,430 $47,627 $48,958 3.0 2.6 2.8

Maryland $55,819 $57,695 $61,726 $64,047 3.4 7.0 3.8

Appalachian Maryland $45,440 $43,860 $44,569 $46,601 -3.5 1.6 4.6

Non-Appalachian Maryland $56,272 $58,283 $62,450 $64,735 3.6 7.2 3.7

Mississippi $38,600 $40,208 $41,062 $40,055 4.2 2.1 -2.5

Appalachian Mississippi $36,448 $37,188 $38,063 $37,988 2.0 2.4 -0.2

Non-Appalachian Mississippi $39,161 $40,958 $41,830 $40,580 4.6 2.1 -3.0

New York $68,035 $70,312 $69,827 $72,671 3.3 -0.7 4.1

Appalachian New York $42,495 $44,359 $46,810 $48,056 4.4 5.5 2.7

Non-Appalachian New York $69,475 $71,706 $70,972 $73,780 3.2 -1.0 4.0

North Carolina $45,045 $49,404 $49,860 $50,762 9.7 0.9 1.8

Appalachian North Carolina $40,520 $40,589 $40,173 $42,601 0.2 -1.0 6.0

Non-Appalachian North Carolina $46,019 $51,207 $51,741 $52,294 11.3 1.0 1.1

Ohio $48,473 $49,146 $50,944 $52,646 1.4 3.7 3.3

Appalachian Ohio $40,431 $40,626 $41,436 $43,529 0.5 2.0 5.0

Non-Appalachian Ohio $49,772 $50,497 $52,441 $54,023 1.5 3.8 3.0

Pennsylvania $52,413 $54,652 $55,847 $58,710 4.3 2.2 5.1

Appalachian Pennsylvania $46,497 $47,691 $49,033 $51,411 2.6 2.8 4.8

Non-Appalachian Pennsylvania $57,206 $60,115 $61,182 $64,072 5.1 1.8 4.7

South Carolina $42,582 $43,626 $44,980 $47,201 2.5 3.1 4.9

Appalachian South Carolina $45,681 $44,938 $46,550 $48,442 -1.6 3.6 4.1

Non-Appalachian South Carolina $41,438 $43,156 $44,417 $46,750 4.1 2.9 5.3

Tennessee $46,681 $47,431 $50,579 $53,236 1.6 6.6 5.3

Appalachian Tennessee $41,391 $42,356 $45,540 $47,394 2.3 7.5 4.1

Non-Appalachian Tennessee $50,443 $50,999 $54,015 $57,013 1.1 5.9 5.6

Virginia $52,948 $56,493 $58,324 $58,561 6.7 3.2 0.4

Appalachian Virginia $37,023 $38,165 $39,895 $39,266 3.1 4.5 -1.6

Non-Appalachian Virginia $54,388 $58,040 $59,798 $59,982 6.7 3.0 0.3

West Virginia (entire state) $41,799 $42,459 $45,202 $45,460 1.6 6.5 0.6

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 94

Chapter 5: Industrial Make-up of Earnings

Table 23 includes a breakdown of overall earnings by industry, for both Appalachia and the United 

States as a whole. The highest-earning industries in the Region in 2017 were State and Local 

Government ($86.5 billion, 13.8 percent of total earnings); Manufacturing ($85.3 billion, 13.6 percent); 

and Health and Social Services ($84.1 billion, 13.4 percent). The United States as a whole had a slightly 

different arrangement of top-earning industries, with Professional and Technical Services being the 

highest-earning sector ($1.7 trillion, 15.6 percent), followed by State and Local Government ($1.4 

trillion, 12.2 percent) and Health and Social Services ($1.3 billion, 11.2 percent).

In terms of industrial shares of total earnings, differences between the Region and the United States as a 

whole were greatest in the following sectors: Manufacturing (13.6 percent in Appalachia, compared to

9.2 percent in the United States); Professional and Technical Services (11.1 percent, compared to 15.6 

percent); and Finance, Insurance, and Real Estate (6.3 percent, compared to 10.6 percent). Of course, 

these gaps in earnings can largely be attributed to the differences in employment across the industries, 

with Appalachia having a larger share of its employment engaged in Manufacturing than the nation as a 

whole (10 percent in Appalachia, compared to 6.8 percent in the United States), and less engaged in the 

other two industries: Professional and Technical Services (12.1 percent, compared to 14.5 percent) and 

Finance, Insurance, and Real Estate (7.8 percent, compared to 10 percent).

Table 23: Earnings per industry and industrial shares (%), 2017

Earnings (millions) and 

Industrial Shares, 2017

Appalachian Region United States

Earnings Ind. Share Earnings Ind. Share

State and Local Government 86,473 13.8 1,366,996 12.2

Manufacturing 85,318 13.6 1,030,856 9.2

Health, Social Services 84,064 13.4 1,250,695 11.2

Wholesale Trade, Transportation 70,552 11.3 1,186,708 10.6

Professional, Technical Services 69,790 11.1 1,747,792 15.6

Construction 41,693 6.7 689,088 6.1

Finance, Insurance, Real Estate 39,233 6.3 1,184,552 10.6

Education, Information Services 34,379 5.5 666,332 5.9

Retail Trade 26,730 4.3 432,070 3.9

Food, Lodging, Entertainment 26,420 4.2 530,302 4.7

Personal and Other Services 25,510 4.1 406,055 3.6

Federal Government, Military 19,005 3.0 439,391 3.9

Coal, Gas, Other Mining 6,837 1.1 101,996 0.9

Utilities 6,235 1.0 83,577 0.7

Farming, Forestry 4,459 0.7 99,839 0.9

Total Earnings 626,698 100 11,200,000 100

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 24 illustrates how each industry’s share of total earnings has changed over time. For most 

industries, share of total earnings was relatively stable from 2002 to 2017. Manufacturing experienced 

the largest decline, dropping from 18.2 percent of earnings in 2002 to 13.5 percent in 2012, with a slight 

uptick to 13.6 percent in 2017. Both Health and Social Services (11.1 percent in 2002 to 13.4 percent in 

2017) and Professional and Technical Services (8.6 percent in 2002 to 11.1 percent in 2017) experienced 

increases, matching the two industries’ employment trends.
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 95

Table 24: Share of total earnings (%) by industry in Appalachia, 2002, 2007, 2012, and 2017

Industry 2002 2007 2012 2017

State & Local Government 13.9 14.3 14.1 13.8

Health, Social Services 11.1 12.0 13.2 13.4

Manufacturing 18.2 16.0 13.5 13.6

Wholesale Trade, Transportation 12.8 12.3 11.6 11.3

Professional, Technical Services 8.6 9.3 10.3 11.1

Construction 6.7 7.0 6.5 6.7

Finance, Insurance, Real Estate 6.7 6.5 6.4 6.3

Education, Information Services 4.4 5.0 5.6 5.5

Retail Trade 3.7 3.7 3.7 4.3

Food, Lodging, Entertainment 3.5 3.5 3.9 4.2

Personal & Other Services 4.3 4.1 4.1 4.1

Federal Government, Military 3.0 3.2 3.3 3.0

Coal, Gas, Other Mining 1.2 1.5 1.9 1.1

Utilities 1.1 1.0 1.0 1.0

Farming, Forestry 0.7 0.7 0.8 0.7

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Employment shares are included along with earnings shares in Table 25 below, shedding light on how 

changes in the industries’ earnings shares can be attributed to the corresponding changes in 

employment shares. 

In 2017, for the three industries with the largest shares of Appalachia’s total earnings, their earnings 

shares were larger than their employment shares (e.g., for State and Local Government in 2017, 

earnings accounted for 13.8 percent of earnings and 11.1 percent of employment). 

For other industries, the reverse was the case: they had larger shares of total employment than shares 

of total earnings (e.g., Retail Trade in 2017 accounted for 4.3 percent of earnings and 11.1 percent of 

employment). Over the years, the industries’ shares of earnings and shares of employment remained 

mostly steady. Only Finance, Insurance, and Real Estate went from having a larger earnings share (6.7 

percent of earnings, compared to 6.1 percent of employment in 2002) to the opposite distinction, of 

having a larger employment share (6.3 percent of earnings, compared to 7.8 percent of employment in 

2017).
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 96

Table 25: Shares of total earnings (%) and employment by industry in Appalachia, 2002, 2007, 2012, 

2017

2002 2007 2012 2017

Earn. Emp. Earn. Emp. Earn. Emp. Earn. Emp.

State and Local Government 13.9 11.7 14.3 11.5 14.1 11.7 13.8 11.1

Health, Social Services 11.1 9.9 12.0 10.6 13.2 11.6 13.4 11.6

Manufacturing 18.2 13.8 16.0 11.5 13.5 9.9 13.6 10.0

Wholesale Trade, Transportation 12.8 6.5 12.3 6.6 11.6 6.4 11.3 6.5

Professional, Technical Services 8.6 9.9 9.3 11.1 10.3 11.8 11.1 12.1

Construction 6.7 6.3 7.0 6.8 6.5 5.6 6.7 5.8

Finance, Insurance, Real Estate 6.7 6.1 6.5 6.9 6.4 7.5 6.3 7.8

Education, Information Services 4.4 3.3 5.0 3.2 5.6 3.3 5.5 3.2

Retail Trade 3.7 12.3 3.7 11.8 3.7 11.4 4.3 11.1

Food, Lodging, Entertainment 3.5 7.9 3.5 8.3 3.9 8.7 4.2 9.2

Personal and Other Services 4.3 6.0 4.1 5.8 4.1 6.0 4.1 5.9

Federal Government, Military 3.0 2.1 3.2 1.9 3.3 2.0 3.0 1.8

Coal, Gas, Other Mining 1.2 0.8 1.5 0.9 1.9 1.3 1.1 1.0

Utilities 1.1 0.5 1.0 0.4 1.0 0.4 1.0 0.4

Farming, Forestry 0.7 2.9 0.7 2.6 0.8 2.5 0.7 2.4

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 26 shows how earnings per employee in the Region compares with earnings per employee at the 

national level, based on industry. Across all industries, earnings per employee in Appalachia was $46,697

in 2017, which was just 82 percent of the national figure of $57,187. Of the 15 industries considered 

here, Utilities had the highest earnings per employee in both the Region and the country as a whole, at 

$109,314 in Appalachia and $125,893 in the United States. Second in the Region in terms of earnings per 

employee was Wholesale Trade and Transportation ($80,686); second for the country overall was 

Federal Government and Military ($91,808).

Education and Information Services was the industry in which earnings per employee in Appalachia

came closest to matching the national average (97 percent of the U.S. figure in 2017). For both 

Wholesale Trade and Transportation and Health and Social Services, earnings per employee in the 

Region were 96 percent of the national averages.

The Farming and Forestry industry had the largest relative discrepancy between earnings per employee

in the Region ($13,726) and earnings per employee at the national level ($28,111); for this sector, 

Appalachia’s average earnings represented just 49 percent of the national figure. Finance, Insurance, 

and Real Estate (62 percent) and Professional and Technical Services (70 percent) were two other 

industries in which Regional earnings per employee fell well below national averages.
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 97

Table 26: Earnings per employee in Appalachia and the United States, 2017

Earnings per Employee, 2017 Appalachian Region United States Appalachia as a

% of U.S.

All Industries $46,697 $57,187 82%

Utilities $109,314 $125,893 87%

Wholesale Trade, Transportation $80,686 $83,878 96%

Education, Information Services $79,670 $82,520 97%

Federal Government, Military $78,938 $91,808 86%

Manufacturing $63,583 $77,469 82%

State and Local Government $58,113 $69,677 83%

Health, Social Services $53,807 $56,340 96%

Construction $53,773 $64,788 83%

Coal, Gas, Other Mining $48,966 $67,769 72%

Professional, Technical Services $43,107 $61,372 70%

Finance, Insurance, Real Estate $37,716 $60,386 62%

Personal and Other Services $32,180 $36,353 89%

Food, Lodging, Entertainment $21,308 $27,685 77%

Retail Trade $17,906 $22,477 80%

Farming, Forestry $13,726 $28,111 49%

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

In the sections that follow, earnings per employee for each of the 15 industrial categories will be 

explored in greater detail. Ordering of industries is based on the industry’s share of overall Appalachian 

earnings in 2017, starting with the largest.
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 98

State and Local Government

Earnings by employees in State and Local Government accounted for the largest share of the Region’s 

total earnings in 2017 ($86.5 billion, 13.8 percent). Earnings per Appalachian employee in the industry

were 83 percent of the national figure, with workers in the Region earning an average of $58,113, 

compared to the national average of $69,677. Since 2002, growth in earnings per employee in 

Appalachia has been slower than that experienced by the country overall. In Figure 61, we see that the 

Region had relatively slower growth rates in each of the time periods considered.

Figure 61: Percent change in earnings per employee, State and Local Government, 2002–2007, 

2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

It follows that, as a percentage of the U.S. average, earnings per employee in Appalachia has fallen 

steadily since 2002: from 86 percent in 2002 to 83 percent in 2017. Figure 62 charts these changes over 

time.

7.3%

1.5%

7.9%

6.0%

0.6%

6.8%

0%

2%

4%

6%

8%

10%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 99

Figure 62: Earnings per employee in Appalachia, State and Local Government, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

In Table 27 we see how earnings per employee across the Region have changed over time. Considering 

the most recent time period, 2012–2017, we see that South Central (7.8 percent) and Southern 

Appalachia (8.2 percent) experienced the fastest growth in earnings per employee in the State and Local 

Government sector, though the Northern subregion had the highest average earnings in 2017, at 

$65,971. Metro areas throughout the Region had the highest average earnings, and they also 

experienced the fastest growth.

For the most part, the Appalachian portions of states experienced growth similar to that of the states’

non-Appalachian portions. However, average earnings tended to be lower in the Appalachian portions. 

The Appalachian portions of Virginia and South Carolina experienced the fastest growth from 2012 to 

2017, at 11.5 and 9.3 percent, respectively. After experiencing faster growth in average earnings than 

both the Region and the country as a whole during the 2002–2007 period, Appalachian Kentucky 

experienced the slowest growth in the Region from 2012 to 2017, with average earnings in State and 

Local Government increasing by just 0.1 percent.

0.80

0.82

0.84

0.86

0.88

0.90

$46,000

$48,000

$50,000

$52,000

$54,000

$56,000

$58,000

$60,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings per Employee

Portion of U.S. Average

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 100

Table 27: Earnings per employee and percent change, State and Local Government, 2002–2017

State & Local Government Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $59,340 $63,655 $64,604 $69,677 7.3 1.5 7.9

Appalachian Region $51,036 $54,115 $54,428 $58,113 6.0 0.6 6.8

Non-Appalachian U.S. $60,035 $64,460 $65,466 $70,626 7.4 1.6 7.9

Subregions

Northern Appalachia $57,755 $61,755 $61,763 $65,971 6.9 0.0 6.8

North Central Appalachia $48,075 $48,705 $49,491 $51,485 1.3 1.6 4.0

Central Appalachia $41,934 $45,446 $45,951 $46,886 8.4 1.1 2.0

South Central Appalachia $46,401 $49,803 $50,499 $54,433 7.3 1.4 7.8

Southern Appalachia $49,492 $52,378 $52,880 $57,202 5.8 1.0 8.2

County Types

Large Metros (pop. 1 million +) $58,916 $60,806 $60,731 $65,170 3.2 -0.1 7.3

Small Metros (pop. <1 million) $50,697 $54,216 $54,684 $58,582 6.9 0.9 7.1

Nonmetro, Adjacent to Large Metros $51,698 $54,532 $55,990 $58,719 5.5 2.7 4.9

Nonmetro, Adjacent to Small Metros $47,831 $50,228 $50,323 $53,558 5.0 0.2 6.4

Rural (nonmetro, not adj. to a metro) $43,639 $47,428 $47,216 $49,664 8.7 -0.4 5.2

Alabama $48,567 $51,849 $52,496 $55,755 6.8 1.2 6.2

Appalachian Alabama $48,953 $52,277 $52,710 $56,560 6.8 0.8 7.3

Non-Appalachian Alabama $47,960 $51,174 $52,153 $54,434 6.7 1.9 4.4

Georgia $53,971 $53,671 $55,198 $59,837 -0.6 2.8 8.4

Appalachian Georgia $52,175 $52,412 $53,556 $58,146 0.5 2.2 8.6

Non-Appalachian Georgia $54,442 $54,041 $55,688 $60,352 -0.7 3.0 8.4

Kentucky $47,834 $52,750 $53,681 $55,305 10.3 1.8 3.0

Appalachian Kentucky $42,097 $46,495 $46,368 $46,405 10.4 -0.3 0.1

Non-Appalachian Kentucky $49,861 $54,855 $56,102 $58,058 10.0 2.3 3.5

Maryland $66,076 $71,725 $72,064 $78,735 8.5 0.5 9.3

Appalachian Maryland $58,206 $61,428 $61,073 $66,053 5.5 -0.6 8.2

Non-Appalachian Maryland $66,457 $72,220 $72,602 $79,325 8.7 0.5 9.3

Mississippi $40,749 $45,997 $45,874 $48,979 12.9 -0.3 6.8

Appalachian Mississippi $39,621 $43,827 $42,846 $45,620 10.6 -2.2 6.5

Non-Appalachian Mississippi $40,993 $46,470 $46,542 $49,730 13.4 0.2 6.9

New York $74,940 $80,495 $85,969 $92,578 7.4 6.8 7.7

Appalachian New York $58,277 $61,305 $65,576 $71,488 5.2 7.0 9.0

Non-Appalachian New York $76,098 $81,867 $87,397 $94,005 7.6 6.8 7.6

North Carolina $51,970 $56,611 $54,884 $58,671 8.9 -3.1 6.9

Appalachian North Carolina $47,253 $50,896 $48,393 $51,801 7.7 -4.9 7.0

Non-Appalachian North Carolina $52,905 $57,725 $56,107 $59,924 9.1 -2.8 6.8

Ohio $55,963 $58,650 $62,126 $65,350 4.8 5.9 5.2

Appalachian Ohio $50,009 $52,560 $54,358 $57,002 5.1 3.4 4.9

Non-Appalachian Ohio $57,094 $59,797 $63,581 $66,898 4.7 6.3 5.2

Pennsylvania $64,466 $69,466 $67,915 $72,193 7.8 -2.2 6.3

Appalachian Pennsylvania $59,574 $64,105 $62,649 $66,699 7.6 -2.3 6.5

Non-Appalachian Pennsylvania $69,384 $74,801 $73,157 $77,502 7.8 -2.2 5.9

South Carolina $49,031 $54,272 $55,096 $60,424 10.7 1.5 9.7

Appalachian South Carolina $52,235 $57,382 $57,672 $63,048 9.9 0.5 9.3

Non-Appalachian South Carolina $48,089 $53,333 $54,300 $59,570 10.9 1.8 9.7

Tennessee $48,517 $52,068 $54,421 $57,124 7.3 4.5 5.0

Appalachian Tennessee $45,138 $48,680 $51,414 $54,834 7.8 5.6 6.7

Non-Appalachian Tennessee $51,135 $54,622 $56,741 $58,911 6.8 3.9 3.8

Virginia $53,065 $56,941 $56,882 $63,461 7.3 -0.1 11.6

Appalachian Virginia $45,691 $47,823 $49,078 $54,730 4.7 2.6 11.5

Non-Appalachian Virginia $54,025 $58,097 $57,851 $64,549 7.5 -0.4 11.6

West Virginia (entire state) $45,923 $45,725 $46,414 $47,961 -0.4 1.5 3.3

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 101

Manufacturing

Throughout the Appalachian Region, the Manufacturing industry brought in $85.3 billion in earnings in 

2017, accounting for the second-largest share of overall earnings (13.6 percent). Earnings per 

Appalachian employee in the industry were just 82 percent of the national figure in 2017, with workers 

in the Region earning an average of $58,113, compared to the national average of $69,677. As seen in 

Figure 63, between 2002 and 2012, growth in earnings per employee in the Region was slower than 

growth in earnings per employee at the national level. However, Appalachia’s growth in average 

earnings of 3.4 percent between 2012 and 2017 outpaced the country’s (1.4 percent growth).

Figure 63: Percent change in earnings per employee, Manufacturing, 2002–2007, 2007–2012, 

and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

7.5%

3.4%

1.4%

6.2%

1.5%

3.4%

0%

1%

2%

3%

4%

5%

6%

7%

8%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 102

As seen in Figure 64, average earnings in Appalachia as a percentage of the national average dropped 

from 83 percent in 2002 to 80 percent in 2012. Since then, however, earnings per employee in the

Region have increased relative to the national average, coming in at 82 percent of the national figure in 

2017.

Figure 64: Earnings per employee in Appalachia, Manufacturing, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 28 displays earnings per employee throughout the Region. When we consider the most recent

2012–2017 time period, we see that Southern Appalachia enjoyed the fastest growth in earnings per 

employee among the subregions, at 5.2 percent. South Central Appalachia, meanwhile, reported the 

lowest, at 2.1 percent. In 2017, North Central Appalachia had the highest average earnings among the 

subregions, at $67,145. Nonmetro areas adjacent to metro areas throughout the Region experienced 

the fastest growth during the 2012–2017 period: 6.4 percent for those adjacent to large metro areas, 

and 5.8 percent for those adjacent to small metro areas.

The Appalachian portions of Georgia (6.5 percent), South Carolina (5.3 percent), and Mississippi (5.2 

percent) saw the largest growth in earnings per employee from 2012 to 2017. The Appalachian portions 

of Virginia (0.4 percent) and Ohio (0.7 percent) saw only modest growth in average earnings, while 

Appalachian Maryland experienced a decline of 3.1 percent.

0.76

0.78

0.80

0.82

0.84

0.86

$52,000

$54,000

$56,000

$58,000

$60,000

$62,000

$64,000

$66,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings per Employee

Portion of U.S. Average

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 103

Table 28: Earnings per employee and percent change, Manufacturing, 2002–2017

Manufacturing Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $68,777 $73,925 $76,420 $77,469 7.5 3.4 1.4

Appalachian Region $57,023 $60,575 $61,475 $63,583 6.2 1.5 3.4

Non-Appalachian U.S. $70,191 $75,481 $78,098 $79,026 7.5 3.5 1.2

Subregions

Northern Appalachia $60,604 $65,221 $64,298 $66,052 7.6 -1.4 2.7

North Central Appalachia $61,787 $63,090 $64,397 $67,145 2.1 2.1 4.3

Central Appalachia $50,755 $52,696 $54,917 $57,038 3.8 4.2 3.9

South Central Appalachia $54,092 $58,555 $60,741 $61,990 8.3 3.7 2.1

Southern Appalachia $55,655 $58,285 $59,758 $62,883 4.7 2.5 5.2

County Types

Large Metros (pop. 1 million +) $64,826 $67,836 $66,806 $69,119 4.6 -1.5 3.5

Small Metros (pop. <1 million) $61,589 $65,537 $66,265 $67,764 6.4 1.1 2.3

Nonmetro, Adjacent to Large Metros $51,284 $55,630 $56,811 $60,445 8.5 2.1 6.4

Nonmetro, Adjacent to Small Metros $48,855 $51,665 $53,286 $56,402 5.8 3.1 5.8

Rural (nonmetro, not adj. to a metro) $46,427 $48,496 $50,256 $51,714 4.5 3.6 2.9

Alabama $55,015 $59,068 $61,168 $63,811 7.4 3.6 4.3

Appalachian Alabama $55,278 $59,398 $60,537 $62,898 7.5 1.9 3.9

Non-Appalachian Alabama $54,440 $58,369 $62,386 $65,671 7.2 6.9 5.3

Georgia $60,314 $62,773 $65,574 $67,682 4.1 4.5 3.2

Appalachian Georgia $55,980 $56,947 $57,197 $60,926 1.7 0.4 6.5

Non-Appalachian Georgia $62,794 $66,598 $71,124 $72,275 6.1 6.8 1.6

Kentucky $63,069 $65,526 $66,555 $66,872 3.9 1.6 0.5

Appalachian Kentucky $46,859 $49,617 $51,699 $53,926 5.9 4.2 4.3

Non-Appalachian Kentucky $66,767 $69,096 $69,888 $69,530 3.5 1.1 -0.5

Maryland $75,185 $79,563 $81,804 $84,809 5.8 2.8 3.7

Appalachian Maryland $77,768 $62,107 $66,054 $63,993 -20.1 6.4 -3.1

Non-Appalachian Maryland $74,933 $81,170 $83,328 $86,900 8.3 2.7 4.3

Mississippi $48,400 $51,889 $55,675 $57,608 7.2 7.3 3.5

Appalachian Mississippi $46,895 $47,227 $50,383 $53,021 0.7 6.7 5.2

Non-Appalachian Mississippi $49,264 $54,186 $58,435 $59,989 10.0 7.8 2.7

New York $71,251 $75,702 $75,683 $77,750 6.2 0.0 2.7

Appalachian New York $64,433 $66,953 $69,011 $72,022 3.9 3.1 4.4

Non-Appalachian New York $72,075 $76,871 $76,587 $78,477 6.7 -0.4 2.5

North Carolina $59,371 $64,955 $66,638 $68,068 9.4 2.6 2.1

Appalachian North Carolina $52,317 $56,284 $55,329 $57,647 7.6 -1.7 4.2

Non-Appalachian North Carolina $61,212 $67,000 $69,066 $70,401 9.5 3.1 1.9

Ohio $67,658 $72,450 $71,232 $72,672 7.1 -1.7 2.0

Appalachian Ohio $61,089 $69,115 $62,604 $63,027 13.1 -9.4 0.7

Non-Appalachian Ohio $68,793 $73,002 $72,639 $74,132 6.1 -0.5 2.1

Pennsylvania $67,010 $70,088 $70,554 $72,609 4.6 0.7 2.9

Appalachian Pennsylvania $58,677 $63,274 $63,438 $65,714 7.8 0.3 3.6

Non-Appalachian Pennsylvania $74,218 $76,234 $76,883 $78,525 2.7 0.9 2.1

South Carolina $58,095 $62,956 $66,208 $70,774 8.4 5.2 6.9

Appalachian South Carolina $61,348 $65,298 $68,075 $71,717 6.4 4.3 5.3

Non-Appalachian South Carolina $56,126 $61,668 $65,108 $70,200 9.9 5.6 7.8

Tennessee $62,394 $63,220 $68,865 $69,957 1.3 8.9 1.6

Appalachian Tennessee $57,063 $60,512 $64,310 $65,219 6.0 6.3 1.4

Non-Appalachian Tennessee $67,447 $65,735 $73,278 $74,438 -2.5 11.5 1.6

Virginia $60,751 $66,504 $68,107 $66,646 9.5 2.4 -2.1

Appalachian Virginia $49,541 $55,815 $57,572 $57,811 12.7 3.1 0.4

Non-Appalachian Virginia $63,319 $68,916 $70,264 $68,402 8.8 2.0 -2.6

West Virginia (entire state) $63,170 $63,463 $66,147 $68,868 0.5 4.2 4.1

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 104

Health and Social Services

Employees in the Health and Social Services industry in Appalachia earned $84.1 billion in 2017, which 

accounted for 13.4 percent of total earnings in Appalachia. Earnings per employee were $53,807 in 

2017, which, at 96 percent of the U.S. average, makes it one of the industries with only a small

discrepancy in average earnings between the Region and the country overall. In Figure 65, we see that 

average earnings in the Health and Social Services sector grew at a faster rate in Appalachia than in the 

country overall during both the 2007–2012 and 2012–2017 periods.

Figure 65: Percent change in earnings per employee, Health and Social Services, 2002–2007, 

2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

3.3%

2.2%

4.1%

2.2%

4.4%

4.7%

0%

1%

2%

3%

4%

5%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 105

Figure 66 charts the changes in earnings per Appalachian employee since 2002, with the most notable 

period of growth—in terms of relative performance to the United States as a whole—coming between 

2010 and 2013, during which earnings per employee in Appalachia grew from 93 percent of the national 

average to 96 percent.

Figure 66: Earnings per employee in Appalachia, Health and Social Services, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 29 shows earnings per employee throughout the Region. By and large, average earnings and 

changes throughout the years were comparable across the five subregions. Southern Appalachia, 

though it had the second-highest average earnings in 2017, reported the slowest growth in each of the 

three time periods. Rural areas experienced the fastest growth based on metro designation from 2012 

to 2017, at 5.9 percent.

From 2012 to 2017, West Virginia experienced the fastest growth in average earnings throughout the 

Region, at 7.3 percent, with the Appalachian portions of North Carolina (7.1) and Georgia (6.7 percent) 

not far behind. Appalachian Tennessee had the highest earnings per employee in the industry in 2017, 

at $61,687, though this was much less than the earnings per employee in the non-Appalachian portion 

of the state ($92,158). Appalachian Virginia had lowest average earnings in the Region ($44,797) and the 

second-slowest rate of growth during the 2012–2017 period (2.5 percent), which was faster than only 

Appalachian South Carolina (1.3 percent). 

0.90

0.92

0.94

0.96

0.98

1.00

$45,000

$46,000

$47,000

$48,000

$49,000

$50,000

$51,000

$52,000

$53,000

$54,000

$55,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings per Employee

Portion of U.S. Average

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 106

Table 29: Earnings per employee and percent change, Health and Social Services, 2002–2017

Health, Social Services Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $51,264 $52,945 $54,104 $56,340 3.3 2.2 4.1

Appalachian Region $48,188 $49,231 $51,391 $53,807 2.2 4.4 4.7

Non-Appalachian U.S. $51,522 $53,256 $54,321 $56,531 3.4 2.0 4.1

Subregions

Northern Appalachia $47,091 $48,250 $50,432 $52,781 2.5 4.5 4.7

North Central Appalachia $45,245 $47,291 $49,303 $52,437 4.5 4.3 6.4

Central Appalachia $43,002 $44,825 $47,228 $49,123 4.2 5.4 4.0

South Central Appalachia $50,325 $51,334 $54,596 $57,181 2.0 6.4 4.7

Southern Appalachia $51,734 $51,447 $52,540 $54,536 -0.6 2.1 3.8

County Types

Large Metros (pop. 1 million +) $52,732 $53,522 $55,488 $57,861 1.5 3.7 4.3

Small Metros (pop. <1 million) $50,224 $51,359 $53,799 $56,236 2.3 4.7 4.5

Nonmetro, Adjacent to Large Metros $42,003 $41,724 $43,880 $45,108 -0.7 5.2 2.8

Nonmetro, Adjacent to Small Metros $40,978 $41,885 $43,333 $45,225 2.2 3.5 4.4

Rural (nonmetro, not adj. to a metro) $42,280 $44,166 $45,895 $48,594 4.5 3.9 5.9

Alabama $52,455 $51,879 $53,383 $54,959 -1.1 2.9 3.0

Appalachian Alabama $55,385 $54,229 $56,724 $58,651 -2.1 4.6 3.4

Non-Appalachian Alabama $47,234 $47,752 $47,571 $48,597 1.1 -0.4 2.2

Georgia $51,754 $51,556 $52,256 $55,029 -0.4 1.4 5.3

Appalachian Georgia $48,330 $48,944 $48,483 $51,717 1.3 -0.9 6.7

Non-Appalachian Georgia $52,590 $52,261 $53,316 $56,021 -0.6 2.0 5.1

Kentucky $49,147 $50,329 $52,595 $54,792 2.4 4.5 4.2

Appalachian Kentucky $43,994 $45,820 $48,615 $50,695 4.2 6.1 4.3

Non-Appalachian Kentucky $50,810 $51,764 $53,834 $56,008 1.9 4.0 4.0

Maryland $51,344 $54,197 $55,769 $57,709 5.6 2.9 3.5

Appalachian Maryland $45,590 $49,315 $50,326 $53,097 8.2 2.1 5.5

Non-Appalachian Maryland $51,662 $54,452 $56,044 $57,930 5.4 2.9 3.4

Mississippi $48,199 $48,732 $48,314 $47,907 1.1 -0.9 -0.8

Appalachian Mississippi $45,321 $47,411 $47,043 $48,310 4.6 -0.8 2.7

Non-Appalachian Mississippi $48,938 $49,071 $48,631 $47,804 0.3 -0.9 -1.7

New York $51,478 $53,533 $55,034 $57,223 4.0 2.8 4.0

Appalachian New York $42,298 $44,686 $47,906 $50,395 5.6 7.2 5.2

Non-Appalachian New York $51,976 $53,983 $55,381 $57,524 3.9 2.6 3.9

North Carolina $48,428 $47,959 $50,021 $53,249 -1.0 4.3 6.5

Appalachian North Carolina $47,456 $47,753 $49,468 $52,999 0.6 3.6 7.1

Non-Appalachian North Carolina $48,707 $48,015 $50,167 $53,318 -1.4 4.5 6.3

Ohio $48,644 $49,991 $50,974 $53,680 2.8 2.0 5.3

Appalachian Ohio $42,247 $43,574 $44,916 $46,506 3.1 3.1 3.5

Non-Appalachian Ohio $49,767 $51,089 $51,959 $54,799 2.7 1.7 5.5

Pennsylvania $51,587 $53,287 $54,911 $56,539 3.3 3.0 3.0

Appalachian Pennsylvania $48,782 $49,550 $51,870 $54,263 1.6 4.7 4.6

Non-Appalachian Pennsylvania $53,916 $56,347 $57,298 $58,185 4.5 1.7 1.5

South Carolina $48,633 $49,609 $50,132 $52,054 2.0 1.1 3.8

Appalachian South Carolina $50,533 $50,504 $52,424 $53,102 -0.1 3.8 1.3

Non-Appalachian South Carolina $48,038 $49,339 $49,424 $51,710 2.7 0.2 4.6

Tennessee $60,060 $62,503 $72,422 $80,451 4.1 15.9 11.1

Appalachian Tennessee $53,342 $54,667 $59,442 $61,687 2.5 8.7 3.8

Non-Appalachian Tennessee $64,692 $67,922 $81,009 $92,158 5.0 19.3 13.8

Virginia $49,773 $53,295 $54,431 $56,680 7.1 2.1 4.1

Appalachian Virginia $42,961 $44,272 $43,688 $44,797 3.1 -1.3 2.5

Non-Appalachian Virginia $50,421 $54,120 $55,319 $57,570 7.3 2.2 4.1

West Virginia (entire state) $46,107 $48,268 $49,977 $53,648 4.7 3.5 7.3

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 107

Wholesale Trade and Transportation

Throughout Appalachia, employees engaged in Wholesale Trade and Transportation earned $70.6 billion 

in 2017, accounting for 11.3 percent of the Region’s overall earnings. Earnings per employee in 

Appalachia were $80,686, which came close to matching the national average of $83,878 (the Region’s 

figure was 96 percent of the national number). Over recent years, earnings per employee has declined in 

both Appalachia and the United States overall. Of note, however, is that the Region performed relatively 

better than the country overall during both the 2007–2012 and 2012–2017 periods—its declines in 

average earnings were relatively smaller than what occurred in the country overall. 

Figure 67: Percent change in earnings per employee, Wholesale Trade and Transportation, 2002–2007, 

2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

-2.1%

-0.6%

-5.6%

-3.7%

-0.5% -0.6%

-6%

-5%

-4%

-3%

-2%

-1%

0%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 108

As seen in Figure 68, from 2009 to 2014, Appalachia’s average earnings in Wholesale Trade and 

Transportation declined compared to the nation as a whole (93 percent of the national average in 2009

to 91 percent in 2014). This number has since increased to 96 percent, as of 2017.

Figure 68: Earnings per employee in Appalachia, Wholesale Trade and Transportation, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 30 shows us earnings per employee and growth rates throughout the Region. Two subregions 

experienced earnings growth during the 2012–2017 period: South Central (4.7 percent) and Central 

Appalachia (1.9 percent). The North Central subregion, though it saw a decline of 1.4 percent in average 

earnings from 2012 to 2017, had the highest earnings per employee in 2017—$86,843. Large metro 

areas throughout the Region saw the largest decline over the most recent time period, with average 

earnings falling 4.1 percent. 

The Appalachian portions of North Carolina (9.1 percent) and Ohio (5.4 percent) saw the largest growth 

in Wholesale Trade and Transportation average earnings from 2012 to 2017. Appalachian Pennsylvania 

saw the largest decline, with average earnings decreasing 5.9 percent over the time period, dropping

from $76,865 to $72,298.

0.90

0.92

0.94

0.96

0.98

1.00

$74,000

$76,000

$78,000

$80,000

$82,000

$84,000

$86,000

$88,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings per Employee

Portion of U.S. Average

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 109

Table 30: Earnings per employee and percent change, Wholesale Trade, Transportation, 2002–2017

Wholesale Trade, Transportation Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $91,323 $89,451 $88,898 $83,878 -2.1 -0.6 -5.6

Appalachian Region $84,661 $81,548 $81,151 $80,686 -3.7 -0.5 -0.6

Non-Appalachian U.S. $91,824 $90,039 $89,463 $84,088 -1.9 -0.6 -6.0

Subregions

Northern Appalachia $82,620 $77,459 $78,063 $75,279 -6.2 0.8 -3.6

North Central Appalachia $93,883 $86,004 $88,057 $86,843 -8.4 2.4 -1.4

Central Appalachia $70,763 $67,735 $72,777 $74,126 -4.3 7.4 1.9

South Central Appalachia $77,794 $78,455 $79,475 $83,205 0.8 1.3 4.7

Southern Appalachia $91,685 $89,050 $85,200 $84,271 -2.9 -4.3 -1.1

County Types

Large Metros (pop. 1 million +) $96,268 $93,968 $92,063 $88,248 -2.4 -2.0 -4.1

Small Metros (pop. <1 million) $81,102 $79,851 $79,250 $80,071 -1.5 -0.8 1.0

Nonmetro, Adjacent to Large Metros $79,934 $72,781 $74,049 $72,047 -8.9 1.7 -2.7

Nonmetro, Adjacent to Small Metros $78,267 $71,423 $70,862 $71,863 -8.7 -0.8 1.4

Rural (nonmetro, not adj. to a metro) $78,896 $72,271 $75,951 $76,907 -8.4 5.1 1.3

Alabama $84,605 $83,377 $82,283 $83,301 -1.5 -1.3 1.2

Appalachian Alabama $90,503 $89,161 $87,935 $87,937 -1.5 -1.4 0.0

Non-Appalachian Alabama $74,774 $73,610 $72,522 $75,432 -1.6 -1.5 4.0

Georgia $85,257 $80,597 $75,098 $73,669 -5.5 -6.8 -1.9

Appalachian Georgia $98,966 $94,495 $86,588 $85,330 -4.5 -8.4 -1.5

Non-Appalachian Georgia $81,119 $76,145 $71,326 $69,760 -6.1 -6.3 -2.2

Kentucky $68,696 $65,055 $63,880 $61,266 -5.3 -1.8 -4.1

Appalachian Kentucky $73,368 $67,887 $72,460 $72,328 -7.5 6.7 -0.2

Non-Appalachian Kentucky $67,728 $64,512 $62,370 $59,598 -4.7 -3.3 -4.4

Maryland $103,491 $100,582 $99,647 $82,534 -2.8 -0.9 -17.2

Appalachian Maryland $80,747 $73,423 $71,494 $71,115 -9.1 -2.6 -0.5

Non-Appalachian Maryland $104,691 $102,047 $101,301 $83,101 -2.5 -0.7 -18.0

Mississippi $76,582 $73,744 $75,152 $72,214 -3.7 1.9 -3.9

Appalachian Mississippi $73,265 $62,766 $69,022 $66,544 -14.3 10.0 -3.6

Non-Appalachian Mississippi $77,450 $76,836 $76,800 $73,651 -0.8 0.0 -4.1

New York $98,539 $99,671 $99,459 $93,337 1.1 -0.2 -6.2

Appalachian New York $89,917 $95,531 $96,919 $99,921 6.2 1.5 3.1

Non-Appalachian New York $98,866 $99,821 $99,546 $93,144 1.0 -0.3 -6.4

North Carolina $87,692 $87,663 $87,031 $87,103 0.0 -0.7 0.1

Appalachian North Carolina $86,454 $87,247 $84,841 $93,262 0.9 -2.8 9.9

Non-Appalachian North Carolina $87,915 $87,734 $87,384 $86,252 -0.2 -0.4 -1.3

Ohio $88,855 $76,944 $80,748 $79,211 -13.4 4.9 -1.9

Appalachian Ohio $88,358 $76,069 $75,918 $79,995 -13.9 -0.2 5.4

Non-Appalachian Ohio $88,918 $77,058 $81,398 $79,114 -13.3 5.6 -2.8

Pennsylvania $89,775 $85,816 $84,619 $75,655 -4.4 -1.4 -10.6

Appalachian Pennsylvania $81,062 $76,306 $76,865 $72,298 -5.9 0.7 -5.9

Non-Appalachian Pennsylvania $96,405 $92,789 $90,347 $77,789 -3.8 -2.6 -13.9

South Carolina $92,824 $92,272 $88,907 $84,638 -0.6 -3.6 -4.8

Appalachian South Carolina $86,052 $87,792 $82,987 $81,495 2.0 -5.5 -1.8

Non-Appalachian South Carolina $96,177 $94,418 $91,855 $86,099 -1.8 -2.7 -6.3

Tennessee $68,829 $71,362 $72,384 $72,572 3.7 1.4 0.3

Appalachian Tennessee $71,649 $73,395 $76,338 $78,420 2.4 4.0 2.7

Non-Appalachian Tennessee $67,320 $70,288 $70,411 $69,834 4.4 0.2 -0.8

Virginia $90,509 $92,707 $91,226 $81,902 2.4 -1.6 -10.2

Appalachian Virginia $84,690 $82,222 $83,606 $84,568 -2.9 1.7 1.2

Non-Appalachian Virginia $90,943 $93,486 $91,793 $81,743 2.8 -1.8 -10.9

West Virginia (entire state) $90,671 $83,455 $88,258 $86,680 -8.0 5.8 -1.8

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 110

Professional and Technical Services

Employees throughout the Region engaged in Professional and Technical Services earned $69.8 billion in 

2017, which accounted for 11.1 percent of total earnings in Appalachia. With the average Appalachian 

engaged in the industry earning $43,107 in 2017, a large discrepancy existed between the Region and 

the United States as a whole; the number for Appalachia was just 70 percent of the national average 

($61,372). As we see in Figure 69, despite worse relative performance in the two earlier time periods, 

growth in average earnings in Appalachia outpaced the country as a whole during the 2012–2017 period 

(9.3 percent in Appalachia, compared to 7.8 percent in the country as a whole).

Figure 69: Percent change in earnings per employee, Professional and Technical Services, 2002–2007, 

2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

0.5%

8.6%

7.8%

-1.6%

7.4%

9.3%

-4%

-2%

0%

2%

4%

6%

8%

10%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 111

Earnings per employee in Appalachia as a percentage of the national average is shown in Figure 70. A 

slight decline occurred from 2009 to 2011, when the Region’s average earnings as a percentage of the 

U.S. figure dropped from 72 percent to 69 percent. A slight increase has occurred since then, with this 

value rising to 70 percent in 2017.

Figure 70: Earnings per employee in Appalachia, Professional and Technical Services, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 31 shows earnings per Professional and Technical Services employee throughout the Region. 

Earnings in 2017 varied a great deal across the subregions, from a low of $28,391 in Central Appalachia 

to a high of $52,869 in Northern Appalachia. Central Appalachia experienced a large decline in average 

earnings during the most recent time period, dropping 6.8 percent from 2012 to 2017. Southern 

Appalachia saw the largest increase over the time period, with average earnings increasing 14.1 percent. 

While variations in average earnings based on metro status may be expected, the disparities in the 

Professional and Technical Services industry were particularly large; in 2017, average earnings in rural 

areas were $25,222, much less than the $56,212 earned in large metro areas. Rural areas were also the 

only metro designation to experience a decline in earnings per employee from 2012 to 2017, with a 

decrease of 2.6 percent.

When we consider earnings growth rates for the Appalachian portions of states, we see that it was a 

story of extremes during the 2012–2017 period, with several states reporting either large growth or 

large declines. For example, average earnings grew considerably in the Appalachian portions of 

Maryland (30 percent) and Georgia (23.1 percent), while they declined substantially in the Appalachian 

portions of Virginia (17.9 percent decline) and Kentucky (6.1 percent decline).

0.66

0.68

0.70

0.72

0.74

0.76

$32,000

$34,000

$36,000

$38,000

$40,000

$42,000

$44,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings per Employee

Portion of U.S. Average

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 112

Table 31: Earnings per employee and percent change, Professional and Technical Services, 2002–2017

Professional, Technical Services Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $52,151 $52,392 $56,914 $61,372 0.5 8.6 7.8

Appalachian Region $37,321 $36,741 $39,445 $43,107 -1.6 7.4 9.3

Non-Appalachian U.S. $53,040 $53,361 $58,019 $62,473 0.6 8.7 7.7

Subregions

Northern Appalachia $41,796 $44,628 $48,483 $52,869 6.8 8.6 9.0

North Central Appalachia $28,873 $30,370 $36,917 $37,172 5.2 21.6 0.7

Central Appalachia $29,037 $27,346 $30,456 $28,391 -5.8 11.4 -6.8

South Central Appalachia $33,500 $32,571 $36,507 $39,898 -2.8 12.1 9.3

Southern Appalachia $37,972 $34,267 $34,576 $39,466 -9.8 0.9 14.1

County Types

Large Metros (pop. 1 million +) $45,904 $48,269 $52,113 $56,212 5.2 8.0 7.9

Small Metros (pop. <1 million) $36,973 $34,066 $36,788 $40,675 -7.9 8.0 10.6

Nonmetro, Adjacent to Large Metros $30,538 $31,315 $30,634 $33,391 2.5 -2.2 9.0

Nonmetro, Adjacent to Small Metros $22,850 $22,178 $24,721 $26,401 -2.9 11.5 6.8

Rural (nonmetro, not adj. to a metro) $25,064 $24,412 $25,887 $25,222 -2.6 6.0 -2.6

Alabama $36,459 $36,754 $36,891 $41,380 0.8 0.4 12.2

Appalachian Alabama $39,868 $40,992 $42,035 $46,428 2.8 2.5 10.5

Non-Appalachian Alabama $29,160 $27,724 $25,914 $30,632 -4.9 -6.5 18.2

Georgia $48,861 $43,252 $42,162 $47,949 -11.5 -2.5 13.7

Appalachian Georgia $34,639 $30,362 $31,106 $38,278 -12.3 2.5 23.1

Non-Appalachian Georgia $52,799 $47,444 $45,678 $50,985 -10.1 -3.7 11.6

Kentucky $35,163 $33,673 $36,125 $37,047 -4.2 7.3 2.6

Appalachian Kentucky $24,526 $21,913 $24,903 $23,305 -10.7 13.6 -6.4

Non-Appalachian Kentucky $37,098 $35,754 $38,238 $39,404 -3.6 6.9 3.0

Maryland $57,256 $58,492 $68,851 $76,335 2.2 17.7 10.9

Appalachian Maryland $30,454 $30,006 $31,433 $40,976 -1.5 4.8 30.4

Non-Appalachian Maryland $57,806 $59,098 $69,671 $77,071 2.2 17.9 10.6

Mississippi $33,054 $29,545 $28,756 $28,293 -10.6 -2.7 -1.6

Appalachian Mississippi $24,247 $22,017 $19,812 $20,127 -9.2 -10.0 1.6

Non-Appalachian Mississippi $34,958 $31,097 $30,859 $30,074 -11.0 -0.8 -2.5

New York $81,575 $80,569 $81,447 $88,575 -1.2 1.1 8.8

Appalachian New York $35,402 $38,486 $41,622 $46,836 8.7 8.1 12.5

Non-Appalachian New York $83,190 $81,954 $82,652 $89,685 -1.5 0.9 8.5

North Carolina $41,219 $42,529 $43,593 $49,283 3.2 2.5 13.1

Appalachian North Carolina $31,533 $32,182 $32,952 $39,559 2.1 2.4 20.0

Non-Appalachian North Carolina $42,896 $44,246 $45,299 $50,737 3.1 2.4 12.0

Ohio $44,080 $46,601 $49,647 $52,954 5.7 6.5 6.7

Appalachian Ohio $31,214 $25,410 $26,527 $30,520 -18.6 4.4 15.1

Non-Appalachian Ohio $45,318 $48,578 $51,915 $55,021 7.2 6.9 6.0

Pennsylvania $51,775 $58,310 $61,841 $67,786 12.6 6.1 9.6

Appalachian Pennsylvania $43,738 $47,845 $53,365 $56,040 9.4 11.5 5.0

Non-Appalachian Pennsylvania $56,672 $64,614 $67,025 $74,542 14.0 3.7 11.2

South Carolina $36,168 $31,445 $32,873 $38,442 -13.1 4.5 16.9

Appalachian South Carolina $43,983 $30,525 $29,734 $32,677 -30.6 -2.6 9.9

Non-Appalachian South Carolina $32,917 $31,857 $34,262 $40,874 -3.2 7.6 19.3

Tennessee $33,957 $33,801 $39,004 $43,244 -0.5 15.4 10.9

Appalachian Tennessee $36,315 $34,712 $39,422 $41,827 -4.4 13.6 6.1

Non-Appalachian Tennessee $32,602 $33,273 $38,760 $44,007 2.1 16.5 13.5

Virginia $62,141 $69,206 $76,344 $73,917 11.4 10.3 -3.2

Appalachian Virginia $26,988 $25,750 $34,263 $28,121 -4.6 33.1 -17.9

Non-Appalachian Virginia $63,526 $70,980 $77,999 $75,670 11.7 9.9 -3.0

West Virginia (entire state) $32,982 $36,235 $39,674 $44,081 9.9 9.5 11.1

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 113

Construction

Workers engaged in the Construction industry throughout Appalachia earned $41.7 billion in 2017, 

accounting for 6.7 percent of the Region’s total earnings. Average sector earnings in the Region were 

$53,733, which was 83 percent of the national average of $64,788. In Figure 71 we see growth rates 

across three recent time periods; average earnings in the Region experienced tremendous growth from 

2007 to 2012, far outpacing the rate at the national level (16.5 percent compared to 5.6 percent). 

However, in the most recent period, Regional growth was slower than national growth (3.5 percent,

compared to 7.9 percent).

Figure 71: Percent change in earnings per employee, Construction, 2002–2007, 2007–2012, 

and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

-4.0%

5.6%

7.9%

-3.7%

16.5%

3.5%

-5%

0%

5%

10%

15%

20%

2002-2007 2007-2012 2012-2017

Earnings per Employee Growth: Construction

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 114

In Figure 72, we see that average Appalachian earnings in the Construction industry as a percentage of 

the national average increased from 78 percent in 2005 to 87 percent in 2012, though it has since 

dropped off to 83 percent as of 2017.

Figure 72: Earnings per employee in Appalachia, Construction, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 32 shows earnings per employee across the Region. After experiencing tremendous growth from

2007 to 2012, Central Appalachia was one of only two subregions to see a decline in average earnings 

from 2012 to 2017, with earnings per employee dropping 11.4 percent. North Central Appalachia also 

saw a decline of 6.5 percent over the same time period. South Central Appalachia saw the largest 

growth in average earnings during the 2012–2017 time period, at 7.7 percent. 

In the most recent period, we see a 7 percent increase in average earnings in small metro areas, but a 

decrease of 3.8 percent in rural areas. Modest growth took place in the other three metro designations.

The Appalachian portions of several states experienced fast Construction sector growth over the most 

recent period: South Carolina (23.3 percent), Georgia (20 percent), and North Carolina (11 percent). 

Meanwhile, several others saw large declines: Mississippi (15.1 percent decrease), Alabama (10.5 

percent decrease), and Kentucky (9.9 percent decrease).

0.76

0.78

0.80

0.82

0.84

0.86

0.88

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings per Employee

Portion of U.S. Average

Earnings per Employee: Construction

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 115

Table 32: Earnings per employee and percent change, Construction, 2002–2017

Construction Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $59,180 $56,837 $60,022 $64,788 -4.0 5.6 7.9

Appalachian Region $46,351 $44,617 $51,957 $53,773 -3.7 16.5 3.5

Non-Appalachian U.S. $60,290 $57,880 $60,732 $65,654 -4.0 4.9 8.1

Subregions

Northern Appalachia $52,631 $49,018 $56,549 $60,022 -6.9 15.4 6.1

North Central Appalachia $47,386 $46,869 $59,084 $55,223 -1.1 26.1 -6.5

Central Appalachia $38,166 $36,441 $48,955 $43,393 -4.5 34.3 -11.4

South Central Appalachia $42,321 $41,008 $46,504 $50,070 -3.1 13.4 7.7

Southern Appalachia $44,223 $44,030 $49,305 $51,394 -0.4 12.0 4.2

County Types

Large Metros (pop. 1 million +) $54,934 $53,483 $60,315 $60,525 -2.6 12.8 0.3

Small Metros (pop. <1 million) $45,369 $44,249 $50,374 $53,879 -2.5 13.8 7.0

Nonmetro, Adjacent to Large Metros $39,963 $37,302 $46,618 $47,355 -6.7 25.0 1.6

Nonmetro, Adjacent to Small Metros $41,252 $37,911 $46,519 $47,856 -8.1 22.7 2.9

Rural (nonmetro, not adj. to a metro) $39,087 $37,108 $47,852 $46,046 -5.1 29.0 -3.8

Alabama $46,229 $45,635 $54,582 $51,050 -1.3 19.6 -6.5

Appalachian Alabama $46,603 $45,719 $58,434 $52,295 -1.9 27.8 -10.5

Non-Appalachian Alabama $45,519 $45,489 $47,107 $48,692 -0.1 3.6 3.4

Georgia $45,301 $47,760 $44,781 $55,366 5.4 -6.2 23.6

Appalachian Georgia $43,184 $43,630 $41,999 $50,398 1.0 -3.7 20.0

Non-Appalachian Georgia $46,375 $50,017 $46,302 $58,200 7.9 -7.4 25.7

Kentucky $46,555 $44,012 $49,508 $54,167 -5.5 12.5 9.4

Appalachian Kentucky $39,038 $36,025 $47,178 $42,493 -7.7 31.0 -9.9

Non-Appalachian Kentucky $48,619 $46,205 $50,184 $57,118 -5.0 8.6 13.8

Maryland $62,834 $63,035 $67,922 $66,404 0.3 7.8 -2.2

Appalachian Maryland $48,872 $48,368 $47,132 $48,038 -1.0 -2.6 1.9

Non-Appalachian Maryland $63,412 $63,629 $68,691 $66,997 0.3 8.0 -2.5

Mississippi $40,077 $41,297 $49,957 $44,367 3.0 21.0 -11.2

Appalachian Mississippi $36,371 $35,120 $46,814 $39,375 -3.4 33.3 -15.9

Non-Appalachian Mississippi $40,967 $42,628 $50,856 $45,673 4.1 19.3 -10.2

New York $67,989 $63,900 $70,267 $74,868 -6.0 10.0 6.5

Appalachian New York $44,707 $42,184 $53,146 $50,120 -5.6 26.0 -5.7

Non-Appalachian New York $69,284 $65,078 $71,209 $76,040 -6.1 9.4 6.8

North Carolina $47,185 $45,463 $47,762 $54,453 -3.6 5.1 14.0

Appalachian North Carolina $43,045 $38,724 $40,824 $45,317 -10.0 5.4 11.0

Non-Appalachian North Carolina $48,184 $47,092 $49,300 $56,357 -2.3 4.7 14.3

Ohio $54,127 $50,185 $55,931 $64,479 -7.3 11.4 15.3

Appalachian Ohio $47,620 $43,419 $55,807 $61,611 -8.8 28.5 10.4

Non-Appalachian Ohio $55,398 $51,531 $55,956 $65,061 -7.0 8.6 16.3

Pennsylvania $66,731 $61,461 $60,526 $69,193 -7.9 -1.5 14.3

Appalachian Pennsylvania $55,057 $50,999 $57,062 $60,130 -7.4 11.9 5.4

Non-Appalachian Pennsylvania $76,895 $69,935 $63,558 $76,442 -9.1 -9.1 20.3

South Carolina $42,671 $44,093 $45,468 $55,414 3.3 3.1 21.9

Appalachian South Carolina $44,197 $44,478 $46,407 $57,223 0.6 4.3 23.3

Non-Appalachian South Carolina $42,123 $43,956 $45,120 $54,775 4.4 2.6 21.4

Tennessee $46,096 $49,160 $57,022 $65,421 6.6 16.0 14.7

Appalachian Tennessee $42,038 $42,427 $51,194 $53,894 0.9 20.7 5.3

Non-Appalachian Tennessee $49,418 $54,722 $61,571 $73,517 10.7 12.5 19.4

Virginia $54,617 $55,993 $57,415 $59,209 2.5 2.5 3.1

Appalachian Virginia $37,455 $38,560 $43,734 $41,839 3.0 13.4 -4.3

Non-Appalachian Virginia $55,917 $57,256 $58,425 $60,313 2.4 2.0 3.2

West Virginia (entire state) $46,250 $48,523 $62,121 $58,095 4.9 28.0 -6.5

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 116

Finance, Insurance, and Real Estate

Appalachian employees engaged in the Finance, Insurance, and Real Estate industry earned $39.3 billion 

in 2017, accounting for 6.3 percent of total earnings in the Region. A large disparity exists between 

average earnings at the Regional and national levels, with the Appalachian average of $37,716 

representing just 62 percent of the national average of $60,386. As seen below in Figure 73, while the 

nation as a whole saw earnings per employee increase 2.9 percent from 2012 to 2017, the Region 

experienced a decline of 2.5 percent.

Figure 73: Percent change in earnings per employee, Finance, Insurance, and Real Estate, 2002–2007, 

2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

-8.4% -7.8%

2.9%

-13.5%

-5.7%

-2.5%

-16%

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

2002-2007 2007-2012 2012-2017

Earnings per Employee Growth: Finance, Insurance, & 

Real Estate

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 117

As we can see in Figure 74, earnings per sector employee in the Region as a percentage of the national 

average saw a large decline from 2005 to 2007, dropping from 75 percent to 64 percent. A slight 

increase took place from 2007 to 2009, which remained steady until 2015, when Appalachian earnings in 

the Finance, Insurance, and Real Estate sector dropped from 67 percent of the national average to 62 

percent in 2017.

Figure 74: Earnings per employee in Appalachia, Finance, Insurance, and Real Estate, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 33 displays average earnings throughout Appalachia. The Northern subregion, which had the 

highest earnings per employee in 2017 ($41,559), was the only Appalachian subregion to experience 

growth from 2012 to 2017, though at 0.6 percent it was only slight. 

Although there was no real pattern in growth rates based on metro status, a wide gap in average 

earnings exists between nonmetro and rural areas in 2017 (ranging from approximately $23,000 to 

$27,000) and large metro areas ($48,256) in 2017.

Only the Appalachian portions of Pennsylvania (1.9 percent), Alabama (1.8 percent), and Mississippi (0.9 

percent) saw average earnings increase from 2012 to 2017. Meanwhile, the Appalachian portions of 

other states saw large declines: South Carolina (14.8 percent), New York (11.2 percent), and Georgia 

(10.2 percent). Appalachian Pennsylvania had the highest Finance, Insurance, and Real Estate sector 

earnings per employee in 2017 ($45,258) and Appalachian Virginia ($20,850) the lowest.

0.60

0.65

0.70

0.75

0.80

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings per Employee

Portion of U.S. Average

Earnings per Employee: Finance, Insurance, & Real Estate

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 118

Table 33: Earnings per employee and percent change, Finance, Insurance, and Real Estate, 2002–2017

Finance, Insurance, Real Estate Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $69,427 $63,627 $58,689 $60,386 -8.4 -7.8 2.9

Appalachian Region $47,421 $41,001 $38,675 $37,716 -13.5 -5.7 -2.5

Non-Appalachian U.S. $70,714 $64,935 $59,843 $61,656 -8.2 -7.8 3.0

Subregions

Northern Appalachia $51,145 $44,937 $41,305 $41,559 -12.1 -8.1 0.6

North Central Appalachia $43,906 $39,370 $35,700 $33,779 -10.3 -9.3 -5.4

Central Appalachia $36,866 $31,935 $28,451 $27,704 -13.4 -10.9 -2.6

South Central Appalachia $39,164 $36,164 $34,211 $33,549 -7.7 -5.4 -1.9

Southern Appalachia $50,638 $41,506 $40,482 $38,150 -18.0 -2.5 -5.8

County Types

Large Metros (pop. 1 million +) $64,120 $52,618 $48,890 $48,256 -17.9 -7.1 -1.3

Small Metros (pop. <1 million) $42,967 $39,292 $37,816 $36,358 -8.6 -3.8 -3.9

Nonmetro, Adjacent to Large Metros $35,179 $30,031 $27,534 $25,207 -14.6 -8.3 -8.5

Nonmetro, Adjacent to Small Metros $32,107 $26,346 $24,393 $23,728 -17.9 -7.4 -2.7

Rural (nonmetro, not adj. to a metro) $36,778 $31,520 $27,470 $26,942 -14.3 -12.8 -1.9

Alabama $46,759 $40,973 $35,552 $36,539 -12.4 -13.2 2.8

Appalachian Alabama $52,539 $45,579 $39,763 $40,470 -13.2 -12.8 1.8

Non-Appalachian Alabama $36,082 $32,727 $27,385 $28,820 -9.3 -16.3 5.2

Georgia $93,541 $73,949 $62,964 $71,469 -20.9 -14.9 13.5

Appalachian Georgia $54,671 $39,348 $39,238 $35,225 -28.0 -0.3 -10.2

Non-Appalachian Georgia $104,229 $84,955 $70,446 $83,212 -18.5 -17.1 18.1

Kentucky $45,325 $43,630 $40,745 $41,130 -3.7 -6.6 0.9

Appalachian Kentucky $37,032 $32,567 $28,153 $27,598 -12.1 -13.6 -2.0

Non-Appalachian Kentucky $46,820 $45,464 $42,840 $43,200 -2.9 -5.8 0.8

Maryland $60,934 $55,258 $59,586 $56,719 -9.3 7.8 -4.8

Appalachian Maryland $44,896 $43,467 $40,389 $39,686 -3.2 -7.1 -1.7

Non-Appalachian Maryland $61,630 $55,734 $60,421 $57,373 -9.6 8.4 -5.0

Mississippi $40,004 $32,507 $29,848 $28,435 -18.7 -8.2 -4.7

Appalachian Mississippi $32,653 $29,575 $26,395 $26,629 -9.4 -10.8 0.9

Non-Appalachian Mississippi $41,526 $33,083 $30,572 $28,819 -20.3 -7.6 -5.7

New York $141,735 $137,482 $119,276 $117,520 -3.0 -13.2 -1.5

Appalachian New York $42,805 $36,606 $36,645 $32,533 -14.5 0.1 -11.2

Non-Appalachian New York $144,312 $139,997 $121,228 $119,333 -3.0 -13.4 -1.6

North Carolina $41,299 $74,336 $67,594 $52,368 80.0 -9.1 -22.5

Appalachian North Carolina $36,354 $32,827 $33,101 $32,160 -9.7 0.8 -2.8

Non-Appalachian North Carolina $42,200 $81,790 $73,487 $55,652 93.8 -10.2 -24.3

Ohio $51,681 $47,565 $49,358 $45,046 -8.0 3.8 -8.7

Appalachian Ohio $37,907 $33,373 $27,226 $26,644 -12.0 -18.4 -2.1

Non-Appalachian Ohio $53,194 $49,185 $51,864 $47,020 -7.5 5.4 -9.3

Pennsylvania $63,113 $67,362 $70,993 $72,406 6.7 5.4 2.0

Appalachian Pennsylvania $55,390 $48,623 $44,401 $45,258 -12.2 -8.7 1.9

Non-Appalachian Pennsylvania $67,874 $78,328 $87,457 $88,981 15.4 11.7 1.7

South Carolina $40,270 $37,425 $44,458 $38,638 -7.1 18.8 -13.1

Appalachian South Carolina $43,795 $39,949 $50,514 $43,021 -8.8 26.4 -14.8

Non-Appalachian South Carolina $39,140 $36,692 $42,656 $37,254 -6.3 16.3 -12.7

Tennessee $52,522 $46,706 $46,825 $44,305 -11.1 0.3 -5.4

Appalachian Tennessee $41,946 $39,219 $36,317 $36,137 -6.5 -7.4 -0.5

Non-Appalachian Tennessee $58,997 $51,525 $53,398 $48,892 -12.7 3.6 -8.4

Virginia $74,349 $62,240 $52,265 $48,206 -16.3 -16.0 -7.8

Appalachian Virginia $31,585 $26,715 $23,466 $20,850 -15.4 -12.2 -11.1

Non-Appalachian Virginia $76,631 $64,105 $53,828 $49,582 -16.3 -16.0 -7.9

West Virginia (entire state) $43,076 $39,061 $37,330 $34,871 -9.3 -4.4 -6.6

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 119

Education and Information Services

Appalachian employees engaged the Education and Information Services industry earned $34.4 billion in 

2017, accounting for 5.5 percent of the Region’s total earnings. At $79,670, earnings per employee 

throughout the Region in 2017 was 97 percent of the national average of $82,520. 

As seen in Figure 75, growth in average sector earnings grew faster in the Region than in the United 

States in both the 2002–2007 and 2007–2012 time periods, though Appalachia’s earnings per employee 

grew slower than the national figure in the most recent period (4.4 percent in the Region, compared to 

6.5 percent in the United States).

Figure 75: Percent change in earnings per employee, Education and Information Services, 2002–2007, 

2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

14.9%

6.2% 6.5%

15.8%

13.9%

4.4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 120

As seen in Figure 76, Appalachian earnings in Education and Information Services as a percentage of the 

national average increased steadily from 2006 (91 percent) to 2013 (99 percent), before dropping 

slightly to 97 percent in 2017.

Figure 76: Earnings per employee in Appalachia, Education and Information Services, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

In Table 34 we see sector earnings per employee across the Region. Though North Central Appalachia 

experienced the largest growth over the most recent two time periods, South Central Appalachia 

reported the highest average earnings in 2017, at $93,316. Average earnings grew fastest from 2012 to 

2017 in rural areas throughout the Region, at 9.2 percent.

The Appalachian portions of Virginia (23 percent) and Maryland (12.7 percent) saw the largest growth in 

average Education and Information Services earnings from 2012 to 2017, followed closely by West 

Virginia (11.3 percent). The Appalachian portions of the following states all experienced slight declines 

over recent years: Mississippi (6.2 percent), Tennessee (2 percent), and Georgia (1 percent). The 

Appalachian portions of South Carolina and Tennessee had the highest average earnings in 2017, at 

$106,594 and $106,308 respectively.

0.90

0.92

0.94

0.96

0.98

1.00

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings per Employee

Portion of U.S. Average

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 121

Table 34: Earnings per employee and percent change, Education and Information Services, 2002–2017

Education, Information Services Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $63,487 $72,927 $77,455 $82,520 14.9 6.2 6.5

Appalachian Region $57,847 $66,992 $76,326 $79,670 15.8 13.9 4.4

Non-Appalachian U.S. $63,835 $73,293 $77,522 $82,681 14.8 5.8 6.7

Subregions

Northern Appalachia $51,156 $57,617 $65,250 $66,858 12.6 13.2 2.5

North Central Appalachia $47,623 $55,164 $69,654 $84,019 15.8 26.3 20.6

Central Appalachia $51,214 $63,071 $76,294 $83,315 23.2 21.0 9.2

South Central Appalachia $70,459 $75,429 $90,852 $93,316 7.1 20.4 2.7

Southern Appalachia $66,518 $81,540 $87,114 $89,763 22.6 6.8 3.0

County Types

Large Metros (pop. 1 million +) $60,398 $68,300 $71,130 $73,519 13.1 4.1 3.4

Small Metros (pop. <1 million) $60,699 $70,617 $83,397 $87,661 16.3 18.1 5.1

Nonmetro, Adjacent to Large Metros $55,752 $63,431 $75,852 $81,527 13.8 19.6 7.5

Nonmetro, Adjacent to Small Metros $48,641 $56,236 $68,318 $69,198 15.6 21.5 1.3

Rural (nonmetro, not adj. to a metro) $42,206 $54,305 $66,718 $72,850 28.7 22.9 9.2

Alabama $57,777 $69,387 $77,276 $82,459 20.1 11.4 6.7

Appalachian Alabama $58,718 $71,343 $78,932 $86,987 21.5 10.6 10.2

Non-Appalachian Alabama $56,088 $66,041 $74,514 $75,174 17.7 12.8 0.9

Georgia $59,577 $74,037 $75,965 $79,149 24.3 2.6 4.2

Appalachian Georgia $75,043 $87,076 $84,744 $83,929 16.0 -2.7 -1.0

Non-Appalachian Georgia $56,712 $71,209 $74,011 $78,102 25.6 3.9 5.5

Kentucky $54,798 $62,729 $73,535 $86,480 14.5 17.2 17.6

Appalachian Kentucky $44,224 $57,078 $68,244 $72,054 29.1 19.6 5.6

Non-Appalachian Kentucky $57,291 $63,902 $74,600 $89,625 11.5 16.7 20.1

Maryland $68,918 $76,799 $87,710 $93,762 11.4 14.2 6.9

Appalachian Maryland $50,705 $51,881 $72,357 $81,541 2.3 39.5 12.7

Non-Appalachian Maryland $69,411 $77,530 $88,076 $94,041 11.7 13.6 6.8

Mississippi $47,748 $63,877 $72,148 $75,846 33.8 12.9 5.1

Appalachian Mississippi $56,894 $71,469 $87,582 $82,148 25.6 22.5 -6.2

Non-Appalachian Mississippi $46,298 $62,530 $69,286 $74,665 35.1 10.8 7.8

New York $55,322 $62,205 $64,677 $70,955 12.4 4.0 9.7

Appalachian New York $52,026 $56,284 $63,791 $65,208 8.2 13.3 2.2

Non-Appalachian New York $55,476 $62,491 $64,715 $71,168 12.6 3.6 10.0

North Carolina $64,983 $72,250 $78,647 $80,549 11.2 8.9 2.4

Appalachian North Carolina $70,998 $73,866 $77,683 $82,627 4.0 5.2 6.4

Non-Appalachian North Carolina $63,839 $71,959 $78,815 $80,256 12.7 9.5 1.8

Ohio $66,716 $74,212 $81,786 $84,125 11.2 10.2 2.9

Appalachian Ohio $55,700 $64,458 $82,904 $91,696 15.7 28.6 10.6

Non-Appalachian Ohio $67,907 $75,197 $81,680 $83,451 10.7 8.6 2.2

Pennsylvania $57,696 $62,605 $67,495 $71,882 8.5 7.8 6.5

Appalachian Pennsylvania $50,287 $56,986 $62,890 $64,800 13.3 10.4 3.0

Non-Appalachian Pennsylvania $62,244 $65,876 $70,147 $75,766 5.8 6.5 8.0

South Carolina $86,042 $97,461 $103,792 $105,802 13.3 6.5 1.9

Appalachian South Carolina $69,868 $93,768 $105,327 $106,594 34.2 12.3 1.2

Non-Appalachian South Carolina $94,269 $99,183 $103,036 $105,417 5.2 3.9 2.3

Tennessee $90,033 $90,304 $98,205 $100,533 0.3 8.7 2.4

Appalachian Tennessee $74,970 $80,652 $108,475 $106,308 7.6 34.5 -2.0

Non-Appalachian Tennessee $96,536 $95,146 $93,726 $98,093 -1.4 -1.5 4.7

Virginia $56,803 $71,248 $86,680 $98,427 25.4 21.7 13.6

Appalachian Virginia $53,064 $61,169 $67,124 $81,861 15.3 9.7 22.0

Non-Appalachian Virginia $56,994 $71,795 $87,700 $99,203 26.0 22.2 13.1

West Virginia (entire state) $47,044 $55,112 $70,820 $78,856 17.1 28.5 11.3

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 122

Retail Trade

Employees engaged in the Retail Trade industry earned $26.7 billion across Appalachia in 2017, 

accounting for 4.3 percent of the Region’s total earnings. Earnings per employee in the Region, at 

$17,906, were 80 percent of the national average ($22,477). Though average earnings in Appalachia 

grew at a slower rate in the earlier two time periods shown in Figure 77, from 2012 to 2017, growth in 

the Region (22.4 percent) outpaced that of the nation as a whole (15.6 percent).

Figure 77: Percent change in earnings per employee, Retail Trade, 2002–2007, 2007–2012, 

and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

9.8%

7.9%

15.6%

5.8% 5.8%

22.4%

0%

5%

10%

15%

20%

25%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 123

As seen in Figure 78, earnings per employee in Appalachia as a percentage of the national average 

declined from 2002 (80 percent) to 2008 (74 percent), before rising back to 80 percent in 2017.

Figure 78: Earnings per employee in Appalachia, Retail Trade, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 35 shows earnings per Retail Trade employee throughout the Region. Northern Appalachia, which 

had the highest average earnings among the subregions in 2017 ($24,089), saw the fastest growth in the 

most recent period, growing at 47.6 percent from 2012 to 2017. North Central Appalachia, with the 

second-highest average earnings in the Region ($20,156), saw its earnings per employee grow at 29.6 

percent over the same time period. Central Appalachia was the only subregion to see average earnings 

decline during the 2012–2017 period (8.6 percent decrease). Based on metro designations, rural areas 

throughout the Region experienced the slowest growth in the most recent period, at 3.4 percent.

Meanwhile, large metro areas experienced growth of 60.8 percent.

Throughout the Region, the Appalachian portions of states experienced a wide range of changes in 

average Retail Trade earnings during the 2012–2017 period. Earnings growth was high in Appalachian 

Pennsylvania (62.1 percent) and Appalachian Ohio (32 percent), while declines in average earnings were 

large in the Appalachian portions of North Carolina (15.7 percent) and Kentucky (7.9 percent). 

0.72

0.74

0.76

0.78

0.80

0.82

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings per Employee

Portion of U.S. Average

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 124

Table 35: Earnings per employee and percent change, Retail Trade, 2002–2017

Retail Trade Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $16,405 $18,020 $19,447 $22,477 9.8 7.9 15.6

Appalachian Region $13,074 $13,837 $14,634 $17,906 5.8 5.8 22.4

Non-Appalachian U.S. $16,706 $18,390 $19,869 $22,862 10.1 8.0 15.1

Subregions

Northern Appalachia $15,268 $15,468 $16,319 $24,089 1.3 5.5 47.6

North Central Appalachia $11,089 $12,282 $15,554 $20,156 10.8 26.6 29.6

Central Appalachia $13,712 $15,503 $15,675 $14,326 13.1 1.1 -8.6

South Central Appalachia $13,654 $14,392 $14,305 $14,793 5.4 -0.6 3.4

Southern Appalachia $10,397 $11,732 $12,372 $13,333 12.8 5.5 7.8

County Types

Large Metros (pop. 1 million +) $14,624 $13,468 $13,830 $22,243 -7.9 2.7 60.8

Small Metros (pop. <1 million) $13,002 $14,110 $14,859 $16,361 8.5 5.3 10.1

Nonmetro, Adjacent to Large Metros $11,752 $13,470 $14,716 $17,454 14.6 9.2 18.6

Nonmetro, Adjacent to Small Metros $12,348 $14,013 $15,706 $17,808 13.5 12.1 13.4

Rural (nonmetro, not adj. to a metro) $11,871 $13,538 $13,931 $14,403 14.0 2.9 3.4

Alabama $11,690 $13,153 $13,419 $14,907 12.5 2.0 11.1

Appalachian Alabama $10,122 $11,636 $11,834 $13,492 15.0 1.7 14.0

Non-Appalachian Alabama $14,488 $15,799 $16,208 $17,413 9.1 2.6 7.4

Georgia $21,111 $22,132 $23,489 $26,668 4.8 6.1 13.5

Appalachian Georgia $8,000 $9,527 $10,908 $11,486 19.1 14.5 5.3

Non-Appalachian Georgia $26,031 $27,322 $28,746 $33,134 5.0 5.2 15.3

Kentucky $21,363 $23,730 $23,720 $27,473 11.1 0.0 15.8

Appalachian Kentucky $12,551 $13,969 $14,946 $13,766 11.3 7.0 -7.9

Non-Appalachian Kentucky $24,180 $26,748 $26,432 $31,478 10.6 -1.2 19.1

Maryland $12,444 $13,624 $14,497 $17,592 9.5 6.4 21.3

Appalachian Maryland $16,814 $19,978 $20,325 $21,360 18.8 1.7 5.1

Non-Appalachian Maryland $12,201 $13,257 $14,148 $17,371 8.7 6.7 22.8

Mississippi $12,918 $14,552 $15,236 $15,851 12.6 4.7 4.0

Appalachian Mississippi $13,680 $17,568 $16,893 $16,375 28.4 -3.8 -3.1

Non-Appalachian Mississippi $12,721 $13,803 $14,803 $15,718 8.5 7.2 6.2

New York $16,075 $18,407 $18,689 $19,973 14.5 1.5 6.9

Appalachian New York $8,372 $9,435 $8,864 $8,715 12.7 -6.1 -1.7

Non-Appalachian New York $16,624 $19,010 $19,301 $20,626 14.4 1.5 6.9

North Carolina $13,520 $13,334 $13,219 $14,801 -1.4 -0.9 12.0

Appalachian North Carolina $12,406 $11,761 $11,717 $9,872 -5.2 -0.4 -15.7

Non-Appalachian North Carolina $13,773 $13,672 $13,538 $15,819 -0.7 -1.0 16.9

Ohio $14,607 $18,496 $18,751 $22,289 26.6 1.4 18.9

Appalachian Ohio $11,335 $13,858 $17,903 $23,631 22.3 29.2 32.0

Non-Appalachian Ohio $15,230 $19,407 $18,913 $22,036 27.4 -2.5 16.5

Pennsylvania $17,282 $18,283 $20,553 $28,957 5.8 12.4 40.9

Appalachian Pennsylvania $17,154 $16,586 $17,560 $28,471 -3.3 5.9 62.1

Non-Appalachian Pennsylvania $17,397 $19,760 $23,154 $29,364 13.6 17.2 26.8

South Carolina $10,645 $11,373 $11,363 $13,573 6.8 -0.1 19.4

Appalachian South Carolina $14,312 $14,206 $14,865 $15,887 -0.7 4.6 6.9

Non-Appalachian South Carolina $9,271 $10,347 $10,161 $12,757 11.6 -1.8 25.5

Tennessee $22,914 $24,522 $24,791 $27,677 7.0 1.1 11.6

Appalachian Tennessee $15,106 $16,431 $16,280 $18,176 8.8 -0.9 11.6

Non-Appalachian Tennessee $29,091 $30,714 $31,214 $34,613 5.6 1.6 10.9

Virginia $14,889 $14,673 $15,790 $18,046 -1.5 7.6 14.3

Appalachian Virginia $10,433 $11,849 $11,229 $11,601 13.6 -5.2 3.3

Non-Appalachian Virginia $15,352 $14,951 $16,229 $18,636 -2.6 8.5 14.8

West Virginia (entire state) $12,462 $13,429 $14,380 $14,305 7.8 7.1 -0.5

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 125

Food, Lodging, and Entertainment

Appalachian employees in the Food, Lodging, and Entertainment industry earned $26.4 billion in 2017, 

which represented 4.2 percent of the Region’s overall earnings. Average earnings in Appalachia were 

$21,308, which was just 77 percent of the national figure of $27,685. Though the Region far outpaced 

national growth in earnings per employee during the 2007–2012 period (8.6 percent compared to 1.7 

percent), it lagged in the most recent period (6.2 percent compared to 8 percent).

Figure 79: Percent change in earnings per employee, Food, Lodging, and Entertainment, 2002–2007, 

2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

1.7% 1.7%

8.0%

-2.3%

8.6%

6.2%

-4%

-2%

0%

2%

4%

6%

8%

10%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 126

As seen in Figure 80, earnings per employee in Appalachia as a percentage of the national average grew 

from 73 percent in 2006 to 78 percent in 2013, before dropping slightly to 77 percent in 2017.

Figure 80: Earnings per employee in Appalachia, Food, Lodging, and Entertainment, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 36 shows earnings per employee throughout the Region. After growing 13.4 percent from 2012 to 

2017, South Central Appalachia had the highest earnings per employee in the Region in 2017 ($23,060). 

Large metro areas throughout the Region saw the fastest growth in the most recent period, at 7.7 

percent. Rural areas, meanwhile, experienced growth of just 1.6 percent from 2012 to 2017.

The Appalachian portions of Tennessee (15 percent), Maryland (14.1 percent), and North Carolina (11.7 

percent) saw the fastest growth in earnings per employee in the Food, Lodging, and Entertainment 

sector during the 2012–2017 period. Appalachian Mississippi was the only state to see a decline over the 

time period (1.5 percent), though this was not as large of a decrease as what occurred in the nonAppalachian portion of the state, which experienced a drop in average earnings of 4.8 percent.

0.70

0.72

0.74

0.76

0.78

0.80

$16,000

$17,000

$18,000

$19,000

$20,000

$21,000

$22,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings per Employee

Portion of U.S. Average

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 127

Table 36: Earnings per employee and percent change, Food, Lodging, and Entertainment, 2002–2017

Food, Lodging, Entertainment Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $24,789 $25,207 $25,628 $27,685 1.7 1.7 8.0

Appalachian Region $18,900 $18,464 $20,059 $21,308 -2.3 8.6 6.2

Non-Appalachian U.S. $25,221 $25,702 $26,027 $28,126 1.9 1.3 8.1

Subregions

Northern Appalachia $19,046 $19,118 $21,558 $22,810 0.4 12.8 5.8

North Central Appalachia $18,338 $17,632 $19,384 $19,740 -3.9 9.9 1.8

Central Appalachia $16,369 $15,834 $17,442 $17,628 -3.3 10.2 1.1

South Central Appalachia $20,851 $19,833 $20,330 $23,060 -4.9 2.5 13.4

Southern Appalachia $17,805 $17,323 $18,623 $19,326 -2.7 7.5 3.8

County Types

Large Metros (pop. 1 million +) $21,042 $19,980 $21,179 $22,807 -5.0 6.0 7.7

Small Metros (pop. <1 million) $18,508 $18,275 $20,336 $21,509 -1.3 11.3 5.8

Nonmetro, Adjacent to Large Metros $15,773 $15,815 $17,336 $18,387 0.3 9.6 6.1

Nonmetro, Adjacent to Small Metros $19,394 $18,586 $19,608 $20,919 -4.2 5.5 6.7

Rural (nonmetro, not adj. to a metro) $16,868 $17,001 $18,063 $18,349 0.8 6.2 1.6

Alabama $16,886 $16,668 $17,878 $18,512 -1.3 7.3 3.5

Appalachian Alabama $17,207 $16,592 $17,923 $18,409 -3.6 8.0 2.7

Non-Appalachian Alabama $16,341 $16,796 $17,805 $18,682 2.8 6.0 4.9

Georgia $22,269 $20,756 $21,416 $21,139 -6.8 3.2 -1.3

Appalachian Georgia $19,591 $18,534 $19,693 $20,154 -5.4 6.3 2.3

Non-Appalachian Georgia $23,006 $21,450 $21,934 $21,454 -6.8 2.3 -2.2

Kentucky $18,669 $19,022 $19,712 $22,296 1.9 3.6 13.1

Appalachian Kentucky $15,898 $15,134 $16,796 $17,083 -4.8 11.0 1.7

Non-Appalachian Kentucky $19,273 $19,836 $20,311 $23,319 2.9 2.4 14.8

Maryland $26,224 $24,139 $24,998 $30,086 -7.9 3.6 20.4

Appalachian Maryland $21,248 $24,468 $24,091 $27,494 15.2 -1.5 14.1

Non-Appalachian Maryland $26,436 $24,125 $25,040 $30,193 -8.7 3.8 20.6

Mississippi $21,838 $20,714 $20,782 $19,823 -5.1 0.3 -4.6

Appalachian Mississippi $14,349 $14,434 $16,096 $15,861 0.6 11.5 -1.5

Non-Appalachian Mississippi $22,928 $21,724 $21,585 $20,545 -5.3 -0.6 -4.8

New York $29,916 $33,685 $35,461 $37,087 12.6 5.3 4.6

Appalachian New York $16,637 $17,893 $18,651 $20,530 7.6 4.2 10.1

Non-Appalachian New York $30,700 $34,544 $36,283 $37,838 12.5 5.0 4.3

North Carolina $20,807 $20,983 $21,525 $23,790 0.8 2.6 10.5

Appalachian North Carolina $19,769 $19,347 $19,403 $21,664 -2.1 0.3 11.7

Non-Appalachian North Carolina $21,051 $21,353 $21,974 $24,242 1.4 2.9 10.3

Ohio $21,748 $20,018 $22,648 $24,750 -8.0 13.1 9.3

Appalachian Ohio $14,984 $14,988 $18,466 $19,108 0.0 23.2 3.5

Non-Appalachian Ohio $22,823 $20,798 $23,286 $25,585 -8.9 12.0 9.9

Pennsylvania $22,661 $22,050 $23,228 $25,179 -2.7 5.3 8.4

Appalachian Pennsylvania $20,037 $19,752 $22,242 $23,571 -1.4 12.6 6.0

Non-Appalachian Pennsylvania $24,998 $23,985 $24,025 $26,419 -4.1 0.2 10.0

South Carolina $18,273 $19,280 $19,995 $22,522 5.5 3.7 12.6

Appalachian South Carolina $17,272 $17,546 $18,992 $20,816 1.6 8.2 9.6

Non-Appalachian South Carolina $18,586 $19,822 $20,300 $23,035 6.6 2.4 13.5

Tennessee $26,496 $28,142 $27,542 $30,741 6.2 -2.1 11.6

Appalachian Tennessee $21,036 $20,138 $21,031 $24,191 -4.3 4.4 15.0

Non-Appalachian Tennessee $30,219 $33,641 $31,969 $35,006 11.3 -5.0 9.5

Virginia $23,008 $23,195 $22,634 $23,911 0.8 -2.4 5.6

Appalachian Virginia $21,322 $18,711 $19,166 $19,945 -12.2 2.4 4.1

Non-Appalachian Virginia $23,155 $23,561 $22,898 $24,176 1.8 -2.8 5.6

West Virginia (entire state) $20,075 $18,958 $20,651 $20,442 -5.6 8.9 -1.0

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 128

Personal and Other Services

Employees engaged in the Personal and Other Services industry throughout the Region earned $25.5 

billion in 2017, accounting for 4.1 percent of Appalachia’s total earnings. Earnings per employee in 

Appalachia were $32,180, which represented 89 percent of the national average ($36,353). Figure 81

shows growth rates in average earnings for both Appalachia and the United States as a whole; we see

that the Region’s growth only slightly outpaced that of the country overall during both the 2007–2012 

and 2012–2017 periods.

Figure 81: Percent change in earnings per employee, Personal and Other Services, 2002–2007, 

2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

-1.8%

1.6%

2.5%

-2.0%

2.4%

3.1%

-4%

-2%

0%

2%

4%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 129

As seen in Figure 82, Appalachian earnings per employee as a percentage of the national average

remained relatively steady in this sector from 2002 to 2017. The low came in 2007 (87 percent) and the 

high in 2015 (90 percent).

Figure 82: Earnings per employee in Appalachia, Personal and Other Services, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 37 shows earnings per employee in the Personal and Other Services sector across the Appalachian 

Region. Northern Appalachia had the highest average earnings in 2017 ($34,555) after experiencing 

growth of 7.3 percent from 2012 to 2017. Southern Appalachia had the lowest earnings per employee 

($29,586), after seeing declines during both the 2007–2012 and 2012–2017 time periods. In the most 

recent five-year period, as we move away from the cities in the Region, growth in average earnings 

generally decreases, from an increase of 5.9 percent in large metro areas to a decline of 0.9 percent in 

rural areas.

Appalachian Pennsylvania (9.9 percent) experienced the largest growth in average earnings from 2012 

to 2017, with the Appalachian portions of North Carolina (4.6 percent), Tennessee (4.3 percent), South 

Carolina (4.2), and Ohio (4.1 percent) following thereafter. Meanwhile, Appalachian Mississippi saw the 

largest decline in the most recent time period, as average earnings dropped 6.2 percent, to $26,515 in 

2017, the lowest average among states in the Region. 

0.84

0.86

0.88

0.90

0.92

0.94

$26,000

$27,000

$28,000

$29,000

$30,000

$31,000

$32,000

$33,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings per Employee

Portion of U.S. Average

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 130

Table 37: Earnings per employee and percent change, Personal and Other Services, 2002–2017

Personal, Other Services Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $35,552 $34,915 $35,473 $36,353 -1.8 1.6 2.5

Appalachian Region $31,134 $30,504 $31,225 $32,180 -2.0 2.4 3.1

Non-Appalachian U.S. $35,924 $35,274 $35,811 $36,672 -1.8 1.5 2.4

Subregions

Northern Appalachia $32,959 $31,553 $32,211 $34,555 -4.3 2.1 7.3

North Central Appalachia $30,426 $28,849 $31,514 $32,062 -5.2 9.2 1.7

Central Appalachia $28,294 $28,043 $30,555 $29,824 -0.9 9.0 -2.4

South Central Appalachia $30,844 $30,541 $32,236 $33,584 -1.0 5.5 4.2

Southern Appalachia $29,904 $30,267 $29,680 $29,586 1.2 -1.9 -0.3

County Types

Large Metros (pop. 1 million +) $34,622 $33,516 $32,304 $34,215 -3.2 -3.6 5.9

Small Metros (pop. <1 million) $30,934 $30,604 $31,804 $32,488 -1.1 3.9 2.2

Nonmetro, Adjacent to Large Metros $28,694 $28,158 $29,885 $30,781 -1.9 6.1 3.0

Nonmetro, Adjacent to Small Metros $28,994 $27,997 $29,325 $29,930 -3.4 4.7 2.1

Rural (nonmetro, not adj. to a metro) $28,724 $27,937 $29,719 $29,439 -2.7 6.4 -0.9

Alabama $26,589 $30,294 $30,574 $29,385 13.9 0.9 -3.9

Appalachian Alabama $27,394 $30,260 $30,520 $29,928 10.5 0.9 -1.9

Non-Appalachian Alabama $25,206 $30,350 $30,662 $28,480 20.4 1.0 -7.1

Georgia $31,603 $29,306 $27,077 $26,940 -7.3 -7.6 -0.5

Appalachian Georgia $32,104 $29,999 $28,378 $28,644 -6.6 -5.4 0.9

Non-Appalachian Georgia $31,430 $29,051 $26,610 $26,295 -7.6 -8.4 -1.2

Kentucky $31,198 $29,371 $32,162 $32,990 -5.9 9.5 2.6

Appalachian Kentucky $28,121 $26,901 $29,248 $28,650 -4.3 8.7 -2.0

Non-Appalachian Kentucky $32,117 $30,087 $33,036 $34,230 -6.3 9.8 3.6

Maryland $36,443 $36,182 $37,590 $38,954 -0.7 3.9 3.6

Appalachian Maryland $32,048 $32,537 $33,490 $33,318 1.5 2.9 -0.5

Non-Appalachian Maryland $36,640 $36,330 $37,742 $39,152 -0.8 3.9 3.7

Mississippi $30,201 $28,313 $28,900 $26,233 -6.3 2.1 -9.2

Appalachian Mississippi $30,337 $28,026 $28,271 $26,515 -7.6 0.9 -6.2

Non-Appalachian Mississippi $30,167 $28,383 $29,059 $26,162 -5.9 2.4 -10.0

New York $37,962 $37,687 $38,534 $40,618 -0.7 2.2 5.4

Appalachian New York $30,998 $29,825 $32,336 $31,788 -3.8 8.4 -1.7

Non-Appalachian New York $38,323 $38,069 $38,799 $40,992 -0.7 1.9 5.7

North Carolina $30,767 $29,723 $31,712 $32,755 -3.4 6.7 3.3

Appalachian North Carolina $30,142 $28,805 $29,535 $30,882 -4.4 2.5 4.6

Non-Appalachian North Carolina $30,912 $29,924 $32,177 $33,135 -3.2 7.5 3.0

Ohio $34,271 $31,090 $33,593 $35,578 -9.3 8.0 5.9

Appalachian Ohio $30,267 $26,910 $30,031 $31,247 -11.1 11.6 4.1

Non-Appalachian Ohio $35,003 $31,853 $34,236 $36,334 -9.0 7.5 6.1

Pennsylvania $37,015 $35,734 $35,408 $37,404 -3.5 -0.9 5.6

Appalachian Pennsylvania $33,997 $32,710 $32,619 $35,864 -3.8 -0.3 9.9

Non-Appalachian Pennsylvania $39,686 $38,275 $37,633 $38,563 -3.6 -1.7 2.5

South Carolina $29,836 $30,443 $30,284 $31,090 2.0 -0.5 2.7

Appalachian South Carolina $32,377 $31,959 $31,168 $32,472 -1.3 -2.5 4.2

Non-Appalachian South Carolina $28,975 $29,932 $29,985 $30,626 3.3 0.2 2.1

Tennessee $33,464 $32,730 $34,616 $35,485 -2.2 5.8 2.5

Appalachian Tennessee $30,670 $31,357 $34,130 $35,599 2.2 8.8 4.3

Non-Appalachian Tennessee $35,459 $33,692 $34,926 $35,415 -5.0 3.7 1.4

Virginia $37,871 $38,834 $38,443 $38,080 2.5 -1.0 -0.9

Appalachian Virginia $31,863 $31,130 $31,508 $30,875 -2.3 1.2 -2.0

Non-Appalachian Virginia $38,422 $39,489 $38,988 $38,593 2.8 -1.3 -1.0

West Virginia (entire state) $29,786 $29,671 $31,981 $31,573 -0.4 7.8 -1.3

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 131

Federal Government and Military

Appalachian workers employed by the Federal Government and Military earned $19 billion in 2017, 

which represented 3 percent of total earnings in the Region. Average earnings in the Region were 

$78,938, which was 86 percent of the national figure of $91,808. Across the three time periods in Figure 

83, we see that both Appalachia and the United States as a whole witnessed comparable growth.

Figure 83: Percent change in earnings per employee, Federal Government and Military, 2002–2007, 

2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

20.6%

6.2%

2.8%

20.1%

5.1%

3.4%

0%

4%

8%

12%

16%

20%

24%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 132

As seen in Figure 84, earnings per sector employee in Appalachia as a percentage of the national 

average decreased only slightly from 2002 to 2017, dropping just one percentage point, from 87 percent 

to 86 percent.

Figure 84: Earnings per employee in Appalachia, Federal Government and Military, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

In Table 38, we see earnings per employee and recent changes across the Appalachian Region. South 

Central Appalachia, after experiencing a 7.6 percent growth in average earnings from 2012 to 2017, had 

the highest earnings per employee among the subregions in 2017, at $83,239. 

Small metro areas throughout the Region had the highest earnings per employee in 2017 ($88,174), and 

they also experienced the fastest growth in these average earnings from 2012 to 2017, at 4.2 percent.

The Appalachian portions of Tennessee (9.6 percent) and Alabama (4.4 percent) saw the fastest growth 

over the most recent period, with these two states also having the highest average earnings in 2017, at 

$91,065 and $96,592, respectively. The Appalachian portions of Georgia ($53,750) and South Carolina 

($54,387) had the lowest earnings per employee among states in the Region.

0.82

0.84

0.86

0.88

0.90

0.92

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings per Employee

Portion of U.S. Average

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 133

Table 38: Earnings per employee and percent change, Federal Government and Military, 2002–2017

Federal Government, Military Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $69,691 $84,028 $89,275 $91,808 20.6 6.2 2.8

Appalachian Region $60,482 $72,635 $76,332 $78,938 20.1 5.1 3.4

Non-Appalachian U.S. $70,203 $84,656 $89,968 $92,489 20.6 6.3 2.8

Subregions

Northern Appalachia $59,787 $70,981 $73,128 $74,236 18.7 3.0 1.5

North Central Appalachia $61,727 $74,647 $77,832 $81,640 20.9 4.3 4.9

Central Appalachia $53,512 $65,661 $66,818 $69,640 22.7 1.8 4.2

South Central Appalachia $61,635 $73,296 $77,377 $83,239 18.9 5.6 7.6

Southern Appalachia $61,392 $74,252 $79,619 $81,348 20.9 7.2 2.2

County Types

Large Metros (pop. 1 million +) $59,710 $69,469 $72,360 $74,915 16.3 4.2 3.5

Small Metros (pop. <1 million) $66,895 $80,414 $84,606 $88,174 20.2 5.2 4.2

Nonmetro, Adjacent to Large Metros $51,258 $61,953 $63,474 $64,602 20.9 2.5 1.8

Nonmetro, Adjacent to Small Metros $49,044 $59,401 $62,746 $63,348 21.1 5.6 1.0

Rural (nonmetro, not adj. to a metro) $51,577 $63,543 $66,508 $68,392 23.2 4.7 2.8

Alabama $68,543 $82,033 $89,396 $92,418 19.7 9.0 3.4

Appalachian Alabama $70,696 $84,440 $92,562 $96,592 19.4 9.6 4.4

Non-Appalachian Alabama $65,072 $77,834 $83,489 $84,809 19.6 7.3 1.6

Georgia $66,490 $83,016 $85,500 $87,274 24.9 3.0 2.1

Appalachian Georgia $46,347 $56,479 $54,839 $53,750 21.9 -2.9 -2.0

Non-Appalachian Georgia $68,336 $85,465 $87,981 $90,228 25.1 2.9 2.6

Kentucky $58,932 $76,015 $81,352 $79,952 29.0 7.0 -1.7

Appalachian Kentucky $49,566 $62,054 $63,608 $65,041 25.2 2.5 2.3

Non-Appalachian Kentucky $60,097 $77,762 $83,428 $81,848 29.4 7.3 -1.9

Maryland $91,074 $110,701 $118,635 $124,495 21.6 7.2 4.9

Appalachian Maryland $53,523 $63,075 $65,465 $67,463 17.8 3.8 3.1

Non-Appalachian Maryland $91,458 $111,172 $119,126 $124,995 21.6 7.2 4.9

Mississippi $57,082 $68,596 $70,623 $71,747 20.2 3.0 1.6

Appalachian Mississippi $48,496 $58,333 $60,311 $60,871 20.3 3.4 0.9

Non-Appalachian Mississippi $58,497 $70,289 $72,354 $73,591 20.2 2.9 1.7

New York $67,953 $80,330 $86,136 $88,360 18.2 7.2 2.6

Appalachian New York $54,900 $63,252 $66,448 $67,533 15.2 5.1 1.6

Non-Appalachian New York $68,396 $80,877 $86,737 $88,985 18.2 7.2 2.6

North Carolina $58,390 $77,154 $83,028 $82,136 32.1 7.6 -1.1

Appalachian North Carolina $52,935 $66,841 $68,130 $71,141 26.3 1.9 4.4

Non-Appalachian North Carolina $58,749 $77,763 $83,925 $82,779 32.4 7.9 -1.4

Ohio $70,302 $81,865 $83,684 $85,193 16.4 2.2 1.8

Appalachian Ohio $52,757 $63,572 $63,248 $63,145 20.5 -0.5 -0.2

Non-Appalachian Ohio $72,526 $84,138 $86,162 $87,852 16.0 2.4 2.0

Pennsylvania $66,459 $79,609 $81,721 $84,727 19.8 2.7 3.7

Appalachian Pennsylvania $61,672 $73,269 $75,534 $76,961 18.8 3.1 1.9

Non-Appalachian Pennsylvania $69,619 $83,828 $85,738 $89,776 20.4 2.3 4.7

South Carolina $56,151 $70,731 $75,762 $74,030 26.0 7.1 -2.3

Appalachian South Carolina $42,921 $54,443 $54,221 $54,387 26.8 -0.4 0.3

Non-Appalachian South Carolina $57,571 $72,420 $77,952 $76,107 25.8 7.6 -2.4

Tennessee $65,815 $77,527 $80,392 $85,744 17.8 3.7 6.7

Appalachian Tennessee $67,451 $77,813 $83,081 $91,065 15.4 6.8 9.6

Non-Appalachian Tennessee $64,766 $77,343 $78,629 $82,388 19.4 1.7 4.8

Virginia $80,599 $99,922 $107,993 $110,539 24.0 8.1 2.4

Appalachian Virginia $47,256 $59,573 $61,188 $60,668 26.1 2.7 -0.9

Non-Appalachian Virginia $81,206 $100,564 $108,679 $111,264 23.8 8.1 2.4

West Virginia (entire state) $62,353 $75,491 $79,086 $83,446 21.1 4.8 5.5

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 134

Coal, Gas, and Other Mining

Employees engaged in the Coal, Gas, and Other Mining industry in Appalachia earned $6.8 billion in 

2017, accounting for 1.1 percent of the Region’s total earnings. Earnings per employee in Appalachia 

were $48,966, which was just 72 percent of the national average ($67,769). In terms of recent changes, 

as shown in Figure 85 below, compared to the nation as a whole, the Region experienced less of a 

decline in average earnings in the most recent time period; the Region’s earnings per employee fell 23.3 

percent, compared to the national drop of 36.4 percent. 

Figure 85: Percent change in earnings per employee, Coal, Gas, and Other Mining, 2002–2007, 

2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

12.4%

1.6%

-36.4%

8.5%

-11.5%

-23.3%

-40%

-30%

-20%

-10%

0%

10%

20%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 135

As seen in Figure 86, average Appalachian earnings as a percentage of the national average dropped 

from 75 percent in 2009 to 58 percent in 2014, before rising sharply to 72 percent in 2017.

Figure 86: Earnings per employee in Appalachia, Coal, Gas, and Other Mining, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 39 shows earnings per Coal, Gas, and Other Mining sector employee throughout the Region. In the 

most recent period shown, we see that all five subregions experienced large declines in average 

earnings, with South Central Appalachia’s dropping 50 percent. Earnings per employee in Central 

Appalachia were highest among the subregions in 2017 ($58,746), despite declining 23.2 percent from 

2012 to 2017. 

Large metro areas throughout the Region, after seeing average earnings drop 41 percent from 2007 to 

2012, had the smallest decline from 2012 to 2017, at 12.1 percent. The other metro designations 

experienced declines ranging from approximately 23 to 28 percent.

The Appalachian portions of four states saw growth over the most recent time period: South Carolina 

(31.5 percent), Georgia (23.1 percent), North Carolina (23 percent), and Maryland (1.1 percent). Two 

states with higher than average employment shares in this industry, Appalachian Kentucky and West 

Virginia, saw large decreases from 2012 to 2017, with declines of 30.8 percent and 21 percent, 

respectively.

0.50

0.55

0.60

0.65

0.70

0.75

0.80

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings per Employee

Portion of U.S. Average

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 136

Table 39: Earnings per employee and percent change, Coal, Gas, and Other Mining, 2002–2017

Coal, Gas, Other Mining Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $93,352 $104,897 $106,547 $67,769 12.4 1.6 -36.4

Appalachian Region $66,501 $72,179 $63,875 $48,966 8.5 -11.5 -23.3

Non-Appalachian U.S. $97,351 $109,222 $111,778 $69,692 12.2 2.3 -37.7

Subregions

Northern Appalachia $69,292 $84,829 $67,234 $56,684 22.4 -20.7 -15.7

North Central Appalachia $57,070 $57,540 $49,071 $37,158 0.8 -14.7 -24.3

Central Appalachia $70,499 $74,791 $76,485 $58,746 6.1 2.3 -23.2

South Central Appalachia $37,627 $50,743 $58,198 $29,126 34.9 14.7 -50.0

Southern Appalachia $77,122 $64,946 $56,664 $35,554 -15.8 -12.8 -37.3

County Types

Large Metros (pop. 1 million +) $99,723 $113,562 $67,051 $58,951 13.9 -41.0 -12.1

Small Metros (pop. <1 million) $64,891 $67,857 $69,216 $49,600 4.6 2.0 -28.3

Nonmetro, Adjacent to Large Metros $63,499 $69,884 $61,956 $47,401 10.1 -11.3 -23.5

Nonmetro, Adjacent to Small Metros $50,055 $53,247 $51,770 $39,749 6.4 -2.8 -23.2

Rural (nonmetro, not adj. to a metro) $64,996 $71,087 $67,130 $50,474 9.4 -5.6 -24.8

Alabama $79,075 $66,700 $60,263 $33,621 -15.6 -9.7 -44.2

Appalachian Alabama $86,813 $71,950 $67,348 $36,923 -17.1 -6.4 -45.2

Non-Appalachian Alabama $49,378 $47,321 $38,029 $25,858 -4.2 -19.6 -32.0

Georgia $72,501 $65,705 $58,959 $65,186 -9.4 -10.3 10.6

Appalachian Georgia $58,348 $51,517 $35,305 $43,475 -11.7 -31.5 23.1

Non-Appalachian Georgia $76,051 $70,227 $66,806 $72,794 -7.7 -4.9 9.0

Kentucky $66,593 $70,147 $60,157 $23,780 5.3 -14.2 -60.5

Appalachian Kentucky $69,677 $68,845 $61,995 $42,873 -1.2 -10.0 -30.8

Non-Appalachian Kentucky $60,230 $72,485 $57,855 $4,239 20.3 -20.2 -92.7

Maryland $75,179 $63,402 $24,908 $24,587 -15.7 -60.7 -1.3

Appalachian Maryland $76,452 $57,501 $59,419 $60,056 -24.8 3.3 1.1

Non-Appalachian Maryland $74,745 $64,629 $18,827 $19,768 -13.5 -70.9 5.0

Mississippi $72,413 $88,179 $88,720 $30,441 21.8 0.6 -65.7

Appalachian Mississippi $48,166 $44,838 $39,249 $22,292 -6.9 -12.5 -43.2

Non-Appalachian Mississippi $74,853 $91,448 $93,107 $31,196 22.2 1.8 -66.5

New York $134,130 $106,846 $88,370 $172,636 -20.3 -17.3 95.4

Appalachian New York $40,316 $42,645 $61,199 $56,493 5.8 43.5 -7.7

Non-Appalachian New York $163,476 $125,104 $95,989 $201,315 -23.5 -23.3 109.7

North Carolina $33,696 ($17,101) $22,807 $27,748 -150.8 -233.4 21.7

Appalachian North Carolina $39,229 $42,249 $28,322 $34,843 7.7 -33.0 23.0

Non-Appalachian North Carolina $31,977 ($36,000) $21,209 $25,769 -212.6 -158.9 21.5

Ohio $50,985 $69,852 $55,378 $45,916 37.0 -20.7 -17.1

Appalachian Ohio $42,995 $50,492 $41,421 $33,872 17.4 -18.0 -18.2

Non-Appalachian Ohio $57,373 $86,933 $67,182 $56,390 51.5 -22.7 -16.1

Pennsylvania $72,954 $89,469 $67,855 $55,708 22.6 -24.2 -17.9

Appalachian Pennsylvania $75,859 $94,811 $70,145 $58,011 25.0 -26.0 -17.3

Non-Appalachian Pennsylvania $56,084 $53,768 $44,470 $35,216 -4.1 -17.3 -20.8

South Carolina $42,838 $38,099 $18,272 $25,526 -11.1 -52.0 39.7

Appalachian South Carolina $47,673 $43,185 $16,169 $21,254 -9.4 -62.6 31.5

Non-Appalachian South Carolina $41,326 $36,692 $18,800 $26,706 -11.2 -48.8 42.1

Tennessee $36,096 $43,259 $31,998 $27,921 19.8 -26.0 -12.7

Appalachian Tennessee $33,269 $42,306 $30,794 $26,214 27.2 -27.2 -14.9

Non-Appalachian Tennessee $40,165 $44,486 $33,262 $29,543 10.8 -25.2 -11.2

Virginia $47,956 $60,522 $64,146 $31,164 26.2 6.0 -51.4

Appalachian Virginia $64,000 $79,257 $100,816 $66,434 23.8 27.2 -34.1

Non-Appalachian Virginia $22,804 $39,666 $29,527 $10,443 73.9 -25.6 -64.6

West Virginia (entire state) $68,518 $70,240 $66,222 $52,288 2.5 -5.7 -21.0

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 137

Utilities

Appalachian workers in the Utilities industry earned $6.2 billion in 2017, which represented 1 percent of 

total earnings in the Region. Appalachian workers earned $109,314 on average, though this was just 87 

percent of the national figure of $125,893. As seen in Figure 87, though the growth was only slight, the 

Region performed better relative to the country overall from 2012 to 2017, which experienced a decline 

in average earnings.

Figure 87: Percent change in earnings per employee, Utilities, 2002–2007, 2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

7.3%

1.6%

-2.6%

7.8%

-2.5%

0.3%

-4%

-2%

0%

2%

4%

6%

8%

10%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 138

In Figure 88, we see that earnings per sector employee in Appalachia as a percentage of the national 

average dropped from 88 percent in 2009 to 83 percent in 2014, before rising sharply to 89 percent in 

2016. The following year then experienced a slight decline, dropping to 87 percent in 2017.

Figure 88: Earnings per employee in Appalachia, Utilities, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 40 shows earnings per sector employee throughout the Region. Only Southern Appalachia, the 

subregion with the highest average earnings in 2017 ($116,186) saw an increase in earnings per 

employee over the 2012–2017 period (5.5 percent). South Central Appalachia had the lowest average 

earnings in 2017 ($76,822), after seeing its wages fall 12.1 percent from 2012 to 2017. Large metro 

areas experienced the largest increase in earnings per employee from 2012 to 2017, at 3.9 percent. 

Rural areas also experienced modest growth of 2.7 percent during the time period.

Appalachian Mississippi saw the largest growth in average earnings from 2012 to 2017, increasing 18.2 

percent. The Appalachian portions of Alabama (7.3 percent) and New York (4.7 percent) saw the nextlargest growth over the period. Meanwhile, the Appalachian portions of North Carolina, Maryland, and 

Tennessee all saw large drops, with declines of 17.7 percent, 13.3 percent, and 12.5 percent, 

respectively.

0.82

0.84

0.86

0.88

0.90

0.92

$95,000

$100,000

$105,000

$110,000

$115,000

$120,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings per Employee

Portion of U.S. Average

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 139

Table 40: Earnings per employee and percent change, Utilities, 2002–2017

Utilities Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $118,458 $127,164 $129,258 $125,893 7.3 1.6 -2.6

Appalachian Region $103,695 $111,758 $108,980 $109,314 7.8 -2.5 0.3

Non-Appalachian U.S. $120,041 $128,719 $131,237 $127,451 7.2 2.0 -2.9

Subregions

Northern Appalachia $106,128 $122,038 $114,725 $113,882 15.0 -6.0 -0.7

North Central Appalachia $100,926 $103,977 $111,063 $110,958 3.0 6.8 -0.1

Central Appalachia $87,831 $86,447 $88,009 $81,978 -1.6 1.8 -6.9

South Central Appalachia $88,590 $93,957 $87,383 $76,822 6.1 -7.0 -12.1

Southern Appalachia $108,544 $113,120 $110,178 $116,186 4.2 -2.6 5.5

County Types

Large Metros (pop. 1 million +) $115,883 $133,241 $121,914 $126,659 15.0 -8.5 3.9

Small Metros (pop. <1 million) $100,960 $107,492 $106,029 $103,514 6.5 -1.4 -2.4

Nonmetro, Adjacent to Large Metros $102,291 $104,375 $106,332 $102,207 2.0 1.9 -3.9

Nonmetro, Adjacent to Small Metros $95,380 $99,805 $102,657 $103,265 4.6 2.9 0.6

Rural (nonmetro, not adj. to a metro) $88,218 $88,807 $88,829 $91,261 0.7 0.0 2.7

Alabama $114,263 $118,925 $112,701 $120,991 4.1 -5.2 7.4

Appalachian Alabama $123,203 $125,836 $118,607 $127,235 2.1 -5.7 7.3

Non-Appalachian Alabama $96,609 $102,660 $98,221 $106,531 6.3 -4.3 8.5

Georgia $72,057 $104,919 $107,638 $119,974 45.6 2.6 11.5

Appalachian Georgia $93,391 $99,317 $97,186 $100,582 6.3 -2.1 3.5

Non-Appalachian Georgia $66,655 $106,600 $110,557 $126,086 59.9 3.7 14.0

Kentucky $97,717 $94,500 $96,490 $95,429 -3.3 2.1 -1.1

Appalachian Kentucky $87,970 $84,633 $85,382 $83,853 -3.8 0.9 -1.8

Non-Appalachian Kentucky $101,681 $98,400 $101,142 $99,680 -3.2 2.8 -1.4

Maryland $94,118 $156,530 $148,296 $161,137 66.3 -5.3 8.7

Appalachian Maryland $127,451 $93,229 $108,183 $93,783 -26.9 16.0 -13.3

Non-Appalachian Maryland $92,368 $158,916 $149,863 $163,639 72.0 -5.7 9.2

Mississippi $84,715 $91,661 $90,624 $91,682 8.2 -1.1 1.2

Appalachian Mississippi $67,881 $70,764 $76,365 $90,283 4.2 7.9 18.2

Non-Appalachian Mississippi $88,828 $97,230 $94,013 $92,123 9.5 -3.3 -2.0

New York $128,516 $140,119 $140,512 $131,789 9.0 0.3 -6.2

Appalachian New York $112,089 $113,587 $107,387 $112,467 1.3 -5.5 4.7

Non-Appalachian New York $129,674 $141,707 $142,356 $132,680 9.3 0.5 -6.8

North Carolina $107,142 $138,474 $140,779 $109,227 29.2 1.7 -22.4

Appalachian North Carolina $92,315 $108,164 $96,556 $79,433 17.2 -10.7 -17.7

Non-Appalachian North Carolina $110,084 $143,971 $148,717 $114,430 30.8 3.3 -23.1

Ohio $109,584 $115,147 $114,906 $116,560 5.1 -0.2 1.4

Appalachian Ohio $105,402 $108,640 $113,437 $113,492 3.1 4.4 0.0

Non-Appalachian Ohio $111,161 $117,799 $115,484 $117,555 6.0 -2.0 1.8

Pennsylvania $124,782 $144,711 $127,081 $121,658 16.0 -12.2 -4.3

Appalachian Pennsylvania $105,297 $127,528 $116,442 $114,399 21.1 -8.7 -1.8

Non-Appalachian Pennsylvania $148,137 $167,763 $140,766 $130,071 13.2 -16.1 -7.6

South Carolina $98,179 $104,101 $106,915 $112,813 6.0 2.7 5.5

Appalachian South Carolina $104,186 $121,409 $125,409 $130,065 16.5 3.3 3.7

Non-Appalachian South Carolina $97,065 $100,832 $104,253 $109,944 3.9 3.4 5.5

Tennessee $92,855 $96,271 $89,635 $68,050 3.7 -6.9 -24.1

Appalachian Tennessee $83,286 $78,494 $76,266 $66,700 -5.8 -2.8 -12.5

Non-Appalachian Tennessee $101,009 $110,150 $99,715 $69,042 9.0 -9.5 -30.8

Virginia $119,348 $121,142 $126,706 $124,724 1.5 4.6 -1.6

Appalachian Virginia $95,323 $95,391 $90,070 $92,676 0.1 -5.6 2.9

Non-Appalachian Virginia $121,917 $124,061 $130,143 $127,335 1.8 4.9 -2.2

West Virginia (entire state) $95,975 $102,176 $109,107 $109,657 6.5 6.8 0.5

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 140

Farming and Forestry

Employees in the Farming and Forestry industry throughout Appalachia earned $4.5 billion in 2017, 

which accounted for 0.7 percent of the Region’s total earnings. Average earnings in the Region were 

$13,726, which was less than half of the national average ($28,111). As seen in Figure 89, though both 

the Appalachian Region and the United States experienced declines in average earnings during the 

2012–2017 period, the Region’s decrease (6.2 percent) was less than what took place for the country 

overall (18.9 percent).

Figure 89: Percent change in earnings per employee, Farming and Forestry, 2002–2007, 2007–2012, 

and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

In Figure 90 we see earnings per sector employee in Appalachia as a percentage of the national average 

since 2002. There was a great deal of change over the years, both in terms of earnings per employee in 

the Region, as well as how these average earnings stacked up to the national average. In 2005, average 

Appalachian earnings were 59 percent of the national average—the high during the 2002–2017 period—

before dropping to 33 percent in 2011. This rose to 55 percent in 2014, and in 2017 average earnings in 

the Region were 49 percent of the national average.

33.9%

23.3%

-18.9%

3.7%

30.4%

-6.2%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 141

Figure 90: Earnings per employee in Appalachia, Farming and Forestry, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 41 shows earnings per sector employee and recent changes across the Appalachian Region. North 

Central and Central Appalachia reported the lowest earnings per employee in 2017, at $3,355 and 

$2,598, respectively. Southern Appalachia, after experiencing 20.8 percent growth from 2012 to 2017, 

had the highest average earnings among the subregions in 2017, at $25,924. 

Only nonmetro counties adjacent to large metro areas saw an increase in earnings per employee from 

2012 to 2017, though growth was only 1.1 percent.

Table 41 shows a wide range of average Farming and Forestry earnings and percent changes. The 

Appalachian portions of Georgia ($46,271) and North Carolina ($24,057) had the highest average 

earnings in the Region in 2017.

0.30

0.40

0.50

0.60

$0

$5,000

$10,000

$15,000

$20,000

$25,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings per Employee

Portion of U.S. Average

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 142

Table 41: Earnings per employee and percent change, Farming and Forestry, 2002–2017

Farming, Forestry Earnings per employee Percent change

2002 2007 2012 2017 2002-2007 2007-2012 2012-2017

United States $20,994 $28,104 $34,661 $28,111 33.9 23.3 -18.9

Appalachian Region $10,816 $11,218 $14,628 $13,726 3.7 30.4 -6.2

Non-Appalachian U.S. $22,080 $29,895 $36,692 $29,559 35.4 22.7 -19.4

Subregions

Northern Appalachia $10,476 $16,340 $22,010 $15,526 56.0 34.7 -29.5

North Central Appalachia $4,153 $4,071 $6,377 $3,355 -2.0 56.6 -47.4

Central Appalachia $4,152 $1,786 $3,823 $2,598 -57.0 114.0 -32.0

South Central Appalachia $9,609 $7,463 $9,643 $10,758 -22.3 29.2 11.6

Southern Appalachia $20,014 $18,271 $21,459 $25,924 -8.7 17.4 20.8

County Types

Large Metros (pop. 1 million +) $10,123 $9,987 $17,759 $15,829 -1.3 77.8 -10.9

Small Metros (pop. <1 million) $10,357 $10,304 $12,841 $11,600 -0.5 24.6 -9.7

Nonmetro, Adjacent to Large Metros $13,630 $15,168 $17,422 $17,610 11.3 14.9 1.1

Nonmetro, Adjacent to Small Metros $11,651 $11,753 $15,755 $14,960 0.9 34.0 -5.0

Rural (nonmetro, not adj. to a metro) $8,510 $9,437 $12,157 $11,252 10.9 28.8 -7.4

Alabama $24,357 $20,557 $19,112 $27,318 -15.6 -7.0 42.9

Appalachian Alabama $20,042 $15,912 $13,072 $22,096 -20.6 -17.8 69.0

Non-Appalachian Alabama $30,235 $27,170 $27,339 $34,441 -10.1 0.6 26.0

Georgia $32,335 $34,508 $43,219 $33,580 6.7 25.2 -22.3

Appalachian Georgia $30,778 $25,176 $42,033 $46,271 -18.2 67.0 10.1

Non-Appalachian Georgia $32,862 $37,652 $43,618 $29,415 14.6 15.8 -32.6

Kentucky $10,603 $12,310 $13,472 $15,001 16.1 9.4 11.3

Appalachian Kentucky $4,327 $3,023 $3,266 $2,029 -30.1 8.0 -37.9

Non-Appalachian Kentucky $13,711 $16,902 $18,768 $21,616 23.3 11.0 15.2

Maryland $15,403 $19,820 $31,422 $22,697 28.7 58.5 -27.8

Appalachian Maryland $12,861 $17,174 $27,347 $9,715 33.5 59.2 -64.5

Non-Appalachian Maryland $15,696 $20,155 $31,929 $24,255 28.4 58.4 -24.0

Mississippi $19,745 $27,757 $22,787 $22,228 40.6 -17.9 -2.5

Appalachian Mississippi $10,239 $18,972 $18,445 $17,192 85.3 -2.8 -6.8

Non-Appalachian Mississippi $22,958 $30,876 $24,410 $24,058 34.5 -20.9 -1.4

New York $15,971 $27,170 $32,534 $23,002 70.1 19.7 -29.3

Appalachian New York $10,056 $17,845 $22,376 $16,020 77.5 25.4 -28.4

Non-Appalachian New York $18,082 $30,441 $35,743 $25,242 68.3 17.4 -29.4

North Carolina $24,385 $33,907 $42,056 $40,125 39.1 24.0 -4.6

Appalachian North Carolina $20,084 $21,177 $18,015 $24,057 5.4 -14.9 33.5

Non-Appalachian North Carolina $25,770 $38,247 $50,048 $45,228 48.4 30.9 -9.6

Ohio $10,280 $16,565 $23,297 $7,800 61.1 40.6 -66.5

Appalachian Ohio $7,945 $9,321 $10,698 $6,918 17.3 14.8 -35.3

Non-Appalachian Ohio $11,397 $19,959 $29,470 $8,237 75.1 47.7 -72.0

Pennsylvania $14,408 $21,399 $28,461 $19,455 48.5 33.0 -31.6

Appalachian Pennsylvania $10,364 $17,255 $24,628 $17,417 66.5 42.7 -29.3

Non-Appalachian Pennsylvania $20,211 $27,559 $33,452 $22,049 36.4 21.4 -34.1

South Carolina $15,087 $16,692 $19,564 $13,209 10.6 17.2 -32.5

Appalachian South Carolina $11,334 $10,868 $14,188 $6,438 -4.1 30.5 -54.6

Non-Appalachian South Carolina $15,987 $18,070 $20,756 $14,640 13.0 14.9 -29.5

Tennessee $19,480 $11,506 $7,060 $3,236 -40.9 -38.6 -54.2

Appalachian Tennessee $4,598 $544 $5,685 $5,987 -88.2 945.7 5.3

Non-Appalachian Tennessee $36,213 $23,696 $8,574 $275 -34.6 -63.8 -96.8

Virginia $11,515 $9,324 $15,122 $9,857 -19.0 62.2 -34.8

Appalachian Virginia $5,848 $1,654 $5,116 ($32) -71.7 209.2 -100.6

Non-Appalachian Virginia $13,857 $12,343 $18,903 $13,556 -10.9 53.2 -28.3

West Virginia (entire state) $3,894 $2,380 $5,086 $3,205 -38.9 113.7 -37.0

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 143

Chapter 6: Summary

This report examined the industrial make-up of the Appalachian Region, with two frameworks used 

throughout: 1) the Region compared to the United States as a whole, and 2) variations found within the 

Region. Broad industrial categories (of the North American Industry Classification System) were 

considered—15 in total—and within each one of these, both employment and earnings were examined. 

Particular attention was given to the 15-year period from 2002 to 2017, though historical data were 

provided for context in some instances. 

Employment and Population

From 1969 to 2017, Appalachia’s share of the U.S. population declined from 9.6 percent to 7.9 percent. 

Over the same period, the Region’s share of the country’s overall employment also dropped, from 8.5 

percent to 6.8 percent. The straightforward takeaway here is that a smaller percentage of the nation’s 

population lives and works in Appalachia today than nearly a half-century ago. 

Appalachia’s share of U.S. employment in relation to Appalachia’s share of the U.S. population also 

declined: In 1969, the ratio for the Appalachian Region was 0.89; in 2017, the value was 0.87. The low 

for the Region during the intervening period came in 1983, at 0.84, and the high in 1995, at 0.90. 

Figure 91: Ratio of Appalachia’s share of U.S. employment to share of U.S. population, 1969–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

1969, 0.89

1983, 0.84

1995, 0.90

2017, 0.87

0.80

0.85

0.90

0.95

1.00

1969 1975 1981 1987 1993 1999 2005 2011 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 144

Appalachia’s working-age population has also declined in recent years, with the Region accounting for a 

lower percentage of the country’s 15-64 population in 2017, at 7.7 percent, than in 2002, when the 

figure was 8.3 percent (in 1970, Appalachia was home to 9.5 percent of the country’s working-age 

population). Given the decline in the Region’s share of the country’s population, we would expect this

corresponding decline in a large subpopulation. However, noteworthy here is that the Region’s share of 

the U.S. working-age population (7.7 percent) was less than its share of overall population (7.9 percent)

in 2017. This aligns with other research indicating that Appalachia’s population has an older age profile 

than the country as a whole.

Figure 92: Percentage of U.S. totals in Appalachia: Population, working-age population, and jobs, 

1969–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

9.6%

7.9%

9.5%

7.7%

8.5%

6.8%

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

1969 1975 1981 1987 1993 1999 2005 2011 2017

Population Population, ages 15 to 64 Jobs
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 145

Another way to look at the equilibrium between employment and people in a given area is by examining

the ratio of employment to the working-age population; a value of 1.0 would indicate that there is one 

documented job for every person ages 15-64 in a given area (though this would be highly unlikely for a 

large area, as the working-age population numbers do not take into account labor force participation). 

As seen in Figure 93, after bottoming out in 2010, these ratios have improved for both the Region and 

country overall. However, Appalachia still lagged far behind the United States overall; the employment 

to working-age population ratio in 2017 was 0.81 for Appalachia and 0.92 for the United States as a 

whole.

Figure 93: Employment to working-age population ratios, 2002–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

0.86

0.89

0.83

0.92

0.77

0.79

0.75

0.81

0.70

0.75

0.80

0.85

0.90

0.95

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

United States Appalachia
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 146

Industrial Make-up and Employment Growth

Employment was broken down into 15 distinct industrial categories in this report, with particular focus 

given to each industry’s share of total employment—its industrial share—for any given geography, as 

well as how employment has grown or declined over recent years. Industrial shares were tracked from 

2002 to 2017, and growth rates were considered for the following three time periods: 2002–2007, 

2007–2012, and 2012–2017.

As seen in Figure 94, if we consider employment across all industries, we see that employment growth 

in the Appalachian Region lagged behind that of the United States during both 2002–2007 and 2012–

2017. In the intervening period, a five-year span that includes the Great Recession, the Region’s decline 

was sharper than that of the United States overall: a 2.3 percent decline in employment in the 

Appalachian Region, compared to a 0.3 percent drop in the country overall.

Figure 94: Percent change in employment, all industries, 2002–2007, 2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

8.8%

-0.3%

9.6%

6.8%

-2.3%

4.7%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 147

In Table 42 we see how the industrial make-up of the Region compared to that of the United States 

overall in 2017. Professional and Technical Services claimed the largest industrial share for both 

geographies, at 12.1 percent of employment in the Region and 14.5 percent in the country overall.

Health and Social Services was second, with the industry accounting for 11.6 percent of employment in 

Appalachia and 11.3 percent in the United States. If we consider these two industrial categories along 

with two others—Finance, Insurance, and Real Estate and Education and Information Services—we get a 

rough estimation of “service economy” employment.

Table 42: Industrial shares, Appalachia and the United States, 2017

Employment (thousands) and 

Industrial Shares, 2017

Appalachian Region United States

Employment Ind. Share (%) Employment Ind. Share (%)

Professional, Technical Services 1,619 12.1 28,479 14.5

Health, Social Services 1,562 11.6 22,199 11.3

Retail Trade 1,493 11.1 19,222 9.8

State and Local Government 1,488 11.1 19,619 10.0

Manufacturing 1,342 10.0 13,307 6.8

Food, Lodging, Entertainment 1,240 9.2 19,155 9.8

Finance, Insurance, Real Estate 1,040 7.8 19,616 10.0

Wholesale Trade, Transportation 874 6.5 14,148 7.2

Personal, Other Services 793 5.9 11,170 5.7

Construction 775 5.8 10,636 5.4

Education, Information Services 432 3.2 8,075 4.1

Farming, Forestry 325 2.4 3,552 1.8

Federal Government, Military 241 1.8 4,786 2.4

Coal, Gas, Other Mining 140 1.0 1,505 0.8

Utilities 57 0.4 664 0.3

Total Employment 13,420 100 196,132 100

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 148

In Figure 95, we are able to track the changes in “service economy” employment over the years. Though 

the change has been subtle, the Region has closed the gap with the United States in terms of share of

employment dedicated to the four industries, increasing from 29.2 percent in 2002 to 34.7 percent in 

2017.

Figure 95: Industrial shares in the “service economy,” 2002, 2007, 2012, and 2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

35.0

37.2

39.4 40.0

29.2

31.8

34.1 34.7

0

5

10

15

20

25

30

35

40

45

2002 2007 2012 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 149

One notable difference shown in Table 42 relates to employment in the Manufacturing industry, with 

the Region having a much larger share of its overall employment dedicated to the sector than the 

country as a whole: 10 percent in 2017 for Appalachia, compared to 6.8 percent for the United States. 

Compared to its share in 2002, Manufacturing’s share of 2017 employment was much lower, as seen in

Figure 96. Though the dip over the past 15 years has been sharp—for both the Region and country 

overall—between 2012 and 2017, the Region saw a small increase in its Manufacturing industrial share, 

whereas there was a slight decline for the United States as a whole.

Figure 96: Industrial shares in Manufacturing, 2002, 2007, 2012, and 2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

9.5

8.1

7.0 6.8

13.8

11.5

9.9 10.0

0

2

4

6

8

10

12

14

16

2002 2007 2012 2017

Percent of Total Employment

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 150

In Table 43, we see industrial shares for Appalachia since 2002, ranked by shares in 2017. In addition to 

the trends noted above, we also see a decline in Retail Trade’s industrial share, dropping from 12.3 

percent in 2002 to 11.1 percent in 2017. Construction’s share of employment declined slightly across the 

same period, as well, dropping from 6.3 percent to 5.8 percent. Farming and Forestry also saw a 

decrease, from 2.9 percent in 2002 to 2.4 percent in 2017. Meanwhile, Food, Lodging, and 

Entertainment saw its industrial share rise from 7.9 percent in 2002 to 9.2 percent in 2017.

Table 43: Industrial shares (%) in Appalachia, 2002, 2007, 2012, 2017

2002 2007 2012 2017

Professional, Technical Services 9.9 11.1 11.8 12.1

Health, Social Services 9.9 10.6 11.6 11.6

Retail Trade 12.3 11.8 11.4 11.1

State and Local Government 11.7 11.5 11.7 11.1

Manufacturing 13.8 11.5 9.9 10.0

Food, Lodging, Entertainment 7.9 8.3 8.7 9.2

Finance, Insurance, Real Estate 6.1 6.9 7.5 7.8

Wholesale Trade, Transportation 6.5 6.6 6.4 6.5

Personal, Other Services 6.0 5.8 6.0 5.9

Construction 6.3 6.8 5.6 5.8

Education, Information Services 3.3 3.2 3.3 3.2

Farming, Forestry 2.9 2.6 2.5 2.4

Federal Government, Military 2.1 1.9 2.0 1.8

Coal, Gas, Other Mining 0.8 0.9 1.3 1.0

Utilities 0.5 0.4 0.4 0.4

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Table 44 offers a simpler look at the Region’s industrial make-up, with each industry’s ranking—out of 

15—provided since 2002.

Table 44: Ranking of industrial shares in Appalachia, 2002, 2007, 2012, 2017

2002 2007 2012 2017

Professional, Technical Services 5 4 1 1

Health, Social Services 4 5 3 2

Retail Trade 2 1 4 3

State and Local Government 3 2 2 4

Manufacturing 1 3 5 5

Food, Lodging, Entertainment 6 6 6 6

Finance, Insurance, Real Estate 9 7 7 7

Wholesale Trade, Transportation 7 9 8 8

Personal, Other Services 10 10 9 9

Construction 8 8 10 10

Education, Information Services 11 11 11 11

Farming, Forestry 12 12 12 12

Federal Government, Military 13 13 13 13

Coal, Gas, Other Mining 14 14 14 14

Utilities 15 15 15 15

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 151

Earnings and Employment

Earlier, when comparing employment and population in Appalachia, we postulated that if the Region 

was home to a specific percentage of the country’s total population, we could reasonably expect a 

similar percentage of the country’s total employment being in the Region, as well.

We can use the same lens when considering earnings and employment: If a geographic area has a 

certain percentage of the country’s total employment, we expect that area to be home to the same 

percentage of the country’s total earnings. However, as seen in Figure 97, when we compare earnings in 

Appalachia to both population and employment, we see that the Region’s earnings as a percentage of 

the U.S. total are less than its shares of both population and employment—and that this discrepancy has 

been present since 1969. In fact, the relative gap between employment and earnings has widened some 

over the past half-century: In 1969, the Region was home to 8.5 percent of the country’s jobs and 7.5 

percent of its earnings. By 2017, Appalachia’s shares had dropped to 6.8 percent of jobs and 5.6 percent 

of earnings.

Figure 97: Percentage of U.S. population, jobs, and earnings in Appalachia, 1969–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Figure 98 tracks the ratio of the Region’s share of U.S. employment to its share of U.S. earnings over 

time. The closest the two ever came to matching—to this ratio being equal to 1.0—came in 1979, when 

the ratio was 0.92. The low came just before the Great Recession, when the ratio was 0.81. The number 

has increased only slightly over the past ten years, to 0.82 in 2017.

9.58%

7.86%

8.51%

6.84% 7.51%

5.60%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

1969 1975 1981 1987 1993 1999 2005 2011 2017

Population Jobs Earnings
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 152

Figure 98: Ratio of Appalachia’s share of U.S. earnings to share of U.S. employment, 1969–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Figure 99 provides another way of looking at the data, as it charts earnings per employee in Appalachia 

over time, as well as the portion of the U.S. average these earnings per employee represent.

Figure 99: Earnings per employee in Appalachia, all industries, 1969–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

1969, 0.88

1979, 0.92

2007, 0.81

2017, 0.82

0.75

0.80

0.85

0.90

0.95

1969 1975 1981 1987 1993 1999 2005 2011 2017

0.74

0.76

0.78

0.80

0.82

0.84

0.86

0.88

0.90

0.92

0.94

 $-

 $5,000

 $10,000

 $15,000

 $20,000

 $25,000

 $30,000

 $35,000

 $40,000

 $45,000

 $50,000

1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017

Earnings per Employee

Portion of U.S. average

Appalachian Region Portion of U.S. average
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 153

In Figure 100, we see that the Region’s growth in overall earnings has lagged behind the growth 

experienced by the United States as a whole since 2002. In the most recent five-year period considered,

2012–2017, overall earnings across all industries grew at 8.6 percent in Appalachia, compared to 13.3 

percent in the country overall.

Figure 100: Earnings growth, all industries, 2002–2007, 2007–2012, and 2012–2017

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

11.9%

2.1%

13.3%

8.2%

0.7%

8.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2002-2007 2007-2012 2012-2017

United States Appalachian Region
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 154

Earnings by Industry

Table 45 provides a breakdown of earnings by industry in Appalachia compared to those in the United 

States as a whole. Differences between the Region and country overall are most noticeable when we 

consider the earnings of the following three sectors: Manufacturing (13.6 percent in Appalachia, 9.2 

percent in the U.S.); Professional and Technical Services (11.1 percent, compared to 15.6 percent); and 

Finance, Insurance, and Real Estate (6.3 percent, compared to 10.6 percent). 

Table 45: Earnings per industry and industrial shares, 2017

Earnings (millions) and 

Industrial Shares, 2017

Appalachian Region United States

Earnings Ind. Share Earnings Ind. Share

State and Local Government 86,473 13.8 1,366,996 12.2

Manufacturing 85,318 13.6 1,030,856 9.2

Health, Social Services 84,064 13.4 1,250,695 11.2

Wholesale Trade, Transportation 70,552 11.3 1,186,708 10.6

Professional, Technical Services 69,790 11.1 1,747,792 15.6

Construction 41,693 6.7 689,088 6.1

Finance, Insurance, Real Estate 39,233 6.3 1,184,552 10.6

Education, Information Services 34,379 5.5 666,332 5.9

Retail Trade 26,730 4.3 432,070 3.9

Food, Lodging, Entertainment 26,420 4.2 530,302 4.7

Personal and Other Services 25,510 4.1 406,055 3.6

Federal Government, Military 19,005 3.0 439,391 3.9

Coal, Gas, Other Mining 6,837 1.1 101,996 0.9

Utilities 6,235 1.0 83,577 0.7

Farming, Forestry 4,459 0.7 99,839 0.9

Total Earnings 626,698 100 11,200,000 100

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 155

For most industries, earnings shares come relatively close to matching employment shares—though the 

spreads between the two are worth consideration. In Table 46, we see these differences in earnings and 

employment shares over time in Appalachia. For example, in 2017, we see that Manufacturing 

accounted for 13.6 percent of the Region’s earnings, but just 10 percent of its employment. On the 

other end of the spectrum, the Retail Trade had 4.3 percent of earnings and 11.1 percent of 

employment.

Table 46: Shares of total earnings and employment (%) by industry in Appalachia, 2002, 2007, 2012, 

2017

2002 2007 2012 2017

Earn. Emp. Earn. Emp. Earn. Emp. Earn. Emp.

State and Local Government 13.9 11.7 14.3 11.5 14.1 11.7 13.8 11.1

Health, Social Services 11.1 9.9 12.0 10.6 13.2 11.6 13.4 11.6

Manufacturing 18.2 13.8 16.0 11.5 13.5 9.9 13.6 10.0

Wholesale Trade, Transportation 12.8 6.5 12.3 6.6 11.6 6.4 11.3 6.5

Professional, Technical Services 8.6 9.9 9.3 11.1 10.3 11.8 11.1 12.1

Construction 6.7 6.3 7.0 6.8 6.5 5.6 6.7 5.8

Finance, Insurance, Real Estate 6.7 6.1 6.5 6.9 6.4 7.5 6.3 7.8

Education, Information Services 4.4 3.3 5.0 3.2 5.6 3.3 5.5 3.2

Retail Trade 3.7 12.3 3.7 11.8 3.7 11.4 4.3 11.1

Food, Lodging, Entertainment 3.5 7.9 3.5 8.3 3.9 8.7 4.2 9.2

Personal and Other Services 4.3 6.0 4.1 5.8 4.1 6.0 4.1 5.9

Federal Government, Military 3.0 2.1 3.2 1.9 3.3 2.0 3.0 1.8

Coal, Gas, Other Mining 1.2 0.8 1.5 0.9 1.9 1.3 1.1 1.0

Utilities 1.1 0.5 1.0 0.4 1.0 0.4 1.0 0.4

Farming, Forestry 0.7 2.9 0.7 2.6 0.8 2.5 0.7 2.4

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 156

Table 47 shows us how earnings per employee compare between Appalachia and the United States as a 

whole. Overall, we see that the average Appalachian worker makes 82 percent of the national average. 

Education and Information Services (97 percent of the U.S. figure) was the industry in which earnings 

per employee in Appalachia came closest to matching the national average. For both Wholesale Trade 

and Transportation and Health and Social Services, earnings per employee in the Region were 96 

percent of the national level.

Meanwhile, employees in the Farming and Forestry industry throughout the Region earned just 49 

percent of the national average in 2017, and the Finance, Insurance, and Real Estate (62 percent) and 

Professional and Technical Services (70 percent) industries also saw large discrepancies between 

Regional and national earnings per employee.

Table 47: Earnings per employee in Appalachia and the United States, 2017

Earnings per Employee, 2017 Appalachian Region United States Appalachia as a 

% of U.S.

All Industries $46,697 $57,187 82%

Utilities $109,314 $125,893 87%

Wholesale Trade, Transportation $80,686 $83,878 96%

Education, Information Services $79,670 $82,520 97%

Federal Government, Military $78,938 $91,808 86%

Manufacturing $63,583 $77,469 82%

State and Local Government $58,113 $69,677 83%

Health, Social Services $53,807 $56,340 96%

Construction $53,773 $64,788 83%

Coal, Gas, Other Mining $48,966 $67,769 72%

Professional, Technical Services $43,107 $61,372 70%

Finance, Insurance, Real Estate $37,716 $60,386 62%

Personal and Other Services $32,180 $36,353 89%

Food, Lodging, Entertainment $21,308 $27,685 77%

Retail Trade $17,906 $22,477 80%

Farming, Forestry $13,726 $28,111 49%

Data source: Woods & Poole, 2019 Complete Economic and Demographics Data Source

Closing Remarks

By providing a quantitative overview of employment throughout the Region—one that relies on data as 

opposed to anecdotal evidence—it is hoped that this report will serve as a useful resource for anyone 

interested in the industrial make-up of Appalachia: researchers, policymakers, economic development 

professionals, and community leaders. We are now able to see where and to what degree certain 

industries are concentrated throughout the Region. Industrial shares and earnings per employee, two of 

the key measures featured throughout this report, provide meaningful starting points for anyone who

wants to consider the socioeconomic profile of any subregion, state, or county within the Region—and 

even Appalachia itself.
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 157

Appendix A: Employment Change Maps, 2012–2017

County-level maps for each industry’s percent change in employment from 2012 to 2017 are featured 

here, ordered by industrial share in the Region, as shown in Chapter 3.

All Industries

Figure 101: Percent change in employment, all industries, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 158

Professional and Technical Services

Figure 102: Percent change in employment, Professional and Technical Services, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 159

Health and Social Services

Figure 103: Percent change in employment, Health and Social Services, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 160

Retail Trade

Figure 104: Percent change in employment, Retail Trade, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 161

State and Local Government

Figure 105: Percent change in employment, State and Local Government, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 162

Manufacturing

Figure 106: Percent change in employment, Manufacturing, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 163

Food, Lodging, and Entertainment 

Figure 107: Percent change in employment, Food, Lodging, and Entertainment, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 164

Finance, Insurance, and Real Estate

Figure 108: Percent change in employment, Finance, Insurance, and Real Estate, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 165

Wholesale Trade and Transportation

Figure 109: Percent change in employment, Wholesale Trade and Transportation, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 166

Personal and Other Services

Figure 110: Percent change in employment, Personal and Other Services, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 167

Construction

Figure 111: Percent change in employment, Construction, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 168

Education and Information Services

Figure 112: Percent change in employment, Education and Information Services, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 169

Farming and Forestry

Figure 113: Percent change in employment, Farming and Forestry, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 170

Federal Government and Military 

Figure 114: Percent change in employment, Federal Government and Military, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 171

Coal, Gas, and Other Mining

Figure 115: Percent change in employment, Coal, Gas, and Other Mining, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 172

Utilities

Figure 116: Percent change in employment, Utilities, 2012 to 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 173

Appendix B: Location Quotient Maps, 2017

Location quotients allow us to see how concentrated industries are in a particular county compared to 

the United States as a whole:

II II ssh aaaa ii CC / II II ssh aaaa ii h UU SS

A value of 1.0 signifies that a county has the same industrial share as the United States as a whole. A 

value greater than 1.0 indicates that an industry is more heavily concentrated in the county than in the 

United States overall, and a value less than 1 indicates that an industry less heavily concentrated.

Professional and Technical Services

Figure 117: Location quotient, Professional and Technical Services, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 174

Health and Social Services

Figure 118: Location quotient, Health and Social Services, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 175

Retail Trade

Figure 119: Location quotient, Retail Trade, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 176

State and Local Government

Figure 120: Location quotient, State and Local Government, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 177

Manufacturing

Figure 121: Location quotient, Manufacturing, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 178

Food, Lodging, and Entertainment

Figure 122: Location quotient, Food, Lodging, and Entertainment, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 179

Finance, Insurance, and Real Estate

Figure 123: Location quotient, Finance, Insurance, and Real Estate, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 180

Wholesale Trade and Transportation

Figure 124: Location quotient, Wholesale Trade and Transportation, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 181

Personal and Other Services

Figure 125: Location quotient, Personal and Other Services, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 182

Construction

Figure 126: Location quotient, Construction, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 183

Education and Information Services

Figure 127: Location quotient, Education and Information Services, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 184

Farming and Forestry

Figure 128: Location quotient, Farming and Forestry, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 185

Federal Government and Military 

Figure 129: Location quotient, Federal Government and Military, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 186

Coal, Gas, and Other Mining

Figure 130: Location quotient, Coal, Gas, and Other Mining, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 187

Utilities

Figure 131: Location quotient, Utilities, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 188

Appendix C: Earnings Per Employee Maps, 2017

County-level maps for each industry’s earnings per employee are featured here, ordered by share of 

total earnings in the Region, as shown in Chapter 4.

All Industries

Figure 132: Earnings per employee, all industries, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 189

State and Local Government

Figure 133: Earnings per employee, State and Local Government, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 190

Manufacturing

Figure 134: Earnings per employee, Manufacturing, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 191

Health and Social Services

Figure 135: Earnings per employee, Health and Social Services, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 192

Wholesale Trade and Transportation

Figure 136: Earnings per employee, Wholesale Trade and Transportation, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 193

Professional and Technical Services

Figure 137: Earnings per employee, Professional and Technical Services, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 194

Construction

Figure 138: Earnings per employee, Construction, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 195

Finance, Insurance, and Real Estate

Figure 139: Earnings per employee, Finance, Insurance, and Real Estate, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 196

Education and Information Services

Figure 140: Earnings per employee, Education and Information Services, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 197

Retail Trade

Figure 141: Earnings per employee, Retail Trade, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 198

Food, Lodging, and Entertainment

Figure 142: Earnings per employee, Food, Lodging, and Entertainment, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 199

Personal and Other Services

Figure 143: Earnings per employee, Personal and Other Services, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 200

Federal Government and Military

Figure 144: Earnings per employee, Federal Government and Military, All Industries, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 201

Coal, Gas, and Other Mining

Figure 145: Earnings per employee, Coal, Gas, and Other Mining, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 202

Utilities

Figure 146: Earnings per employee, Utilities, 2017
INDUSTRIAL MAKE-UP OF THE APPALACHIAN REGION 203

Farming and Forestry

Figure 147: Earnings per employee, Farming and Forestry, 2017