Drawing information from federal statistical sources, this digest summarizes recent changes in rural demographic and economic conditions relevant to rural school systems. Since the early 1990s, the U.S. economy has been strong, and rural areas have been growing at the same rate or faster than the nation's economic pace. Benefiting from the steady growth of employment, income, and local revenue, some rural schools may be able to improve their financial conditions, although the stability of such improvement is uncertain. Since 1990, real income has increased for rural workers at all educational levels, but gains were greater for women and minorities than for men and Whites. However, rural public school teachers showed slight decreases in real income. Despite rural income gains, the poverty rate, the rate of those just above the poverty line, and the number of working poor have remained consistently higher in rural than urban areas in the 1990s. Rural schools must develop effective strategies to alleviate the difficulties facing poor children. Also relevant to rural schools is the growth in rural population in the 1990s. In addition to overall population growth, rural areas have seen increases in the younger population, minority groups, and immigrants. Recent immigrants present particular challenges to rural schools as they tend to have greater numbers of children and lower educational attainment and may require instruction in English as a second language. (Contains 12 references.) (SV)