The Appalachian Regional Commission (ARC) uses an index-based classification system to compare each county in the nation with national averages on three economic indicators—three-year average unemployment rates, per capita market income, and poverty rates. Based on that comparison, each Appalachian county is classified within one of five economic status designations—distressed, at-risk, transitional, competitive, or attainment. Distressed counties are those that rank in the worst 10% of the nation's counties.
ARC targets special resources to the most economically distressed counties and areas in the Region, using a measure of economic distress based on three economic indicators: three-year average unemployment rates, per capita market income, and poverty rates. Besides allocating funding to benefit distressed counties and areas, ARC has established other policies to reduce economic distress.
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