Rural areas are undergoing a significant transition with both opportunities and challenges that will require effective management and investment strategies by all levels of government. Since 2007, the recession has magnified long-term shifts in employment and economic activity, especially in rural areas. The employment structure continues to change as relatively high-wage states in the Midwest face more competition from Right-to-Work states and overseas locations offering lower wages, fewer regulations, and/or other competitive advantages. The loss of manufacturing with relatively high-paying jobs, both in rural communities and regional centers, has seriously eroded incomes which, in turn, affects businesses on main streets, leading to further losses in retail employment, construction, government services, and ultimately the tax base. The impacts of these trends on the Illinois economy were examined in previous "Rural Research Reports" published by the Illinois Institute for Rural Affairs (see Walzer 2001, 2006; Walzer et al. 1994, 2002). This "Rural Research Report" examines demographic and economic trends for three groups: counties in the Chicago metro area and downstate counties, with the latter subdivided into metro and nonmetro counties. This subdivision can provide insights into trends that may require different policies and strategies in the future. The three types of counties vary in terms of issues to be addressed even though they are linked economically. Revitalizing the Illinois economy will require policies that recognize the unique issues faced and the opportunities available for increasing employment and prosperity. The inability of a "one approach or policy fits all" has never been more apparent. This "Rural Research Report" focuses mainly on demographic changes; a comparable analysis is underway on economic trends and issues. (Contains 2 figures, 3 tables and 2 endnotes.)