Demographic and socioeconomic conditions and changes in rural communities provide the context for education programs in such areas. Although these conditions have improved since the 1950s, they have worsened since 1980, affecting the human resource base of rural economics. Cyclical and structural changes affect--and are affected--by: (1) reduced nonmetro population growth and migration (significantly less than the 1970s); (2) a slow recovery from the 1979-82 recession (leading to higher unemployment); (3) population composition changes (an overall aging of the population); (4) more traditional family structure than the metro areas; (5) difficulty in attaining formal education; and (6) the changing dimensions of rural poverty. Nonmetro areas dependent on agriculture, mining and natural resource industries are experiencing severe economic stress in the 1980s compared with the boom conditions of the 1970s. Consequently the population and employment growth of the 1970s has reverted to nonmetro outmigration and very slow economic growth. Educational policymakers should therefore plan for sluggish growth or decline--not for rapid or even average growth--in the demand for traditional elementary and secondary education. Further, nonmetro diversity mediates against "one size fits all" policies. References and data showing population changes, migration, unemployment and poverty rates, age distribution, and educational attainment are appended. (JMM)