Economic Trends in Appalachia – 2025 Update

by Lewis Loflin

As of late 2025, Appalachia continues its long, uneven transition away from coal and traditional manufacturing. While some indicators show modest improvement, the region still trails national averages on income, educational attainment, and population growth.

Key 2025 Findings (ARC FY 2025 Data)

• Distressed counties: 77 (lowest on record, down from 81 in FY 2024)
• Median household income: ~$52,000 (70% of U.S. average)
• Poverty rate: 15.5% (vs. U.S. 13%)
• Labor-force participation: 58.5% (vs. U.S. 62.5%)
• Youth out-migration: Projected 10–20% population loss in many coal counties by 2030

Gains in healthcare employment, renewables, and tourism are offset by persistent rural broadband gaps, low educational attainment (23% bachelor’s degree vs. U.S. 34%), and the ongoing impact of “deaths of despair.” Federal infrastructure investments (IIJA, IRA) have begun to flow, but local implementation remains slow.

Appalachia’s future hinges on workforce training, broadband expansion, and genuine diversification beyond extractive industries.

Compiled and updated by Lewis Loflin, December 2025