In response to the supposition that public support of regional industrial development will benefit the rural poor and unemployed, the relationship between the level of manufacturing activities and unemployment and poverty was examined. Utilizing data derived from the U.S. Census of Population (1960 and 1970) and the County Business Patterns (1959 and 1970), a national sample of 276 rural counties was examined. The variables employed were: (1) the number of county residents unemployed; (2) the percentage of families below the poverty level in 1970 (1969 income); (3) the level of manufacturing activity defined as the total number of manufacturing jobs relative to the total number of jobs in the county; (4) median age; and (5) median level of education. Data indicated that when level of manufacturing activity was defined in terms of labor force composition, there was not a significant amount of variation in unemployment or poverty levels. Moreover, it was found that weak competitors (persons 65 years of age or older, females, persons with less than high school education, and persons not employed) did not benefit from industrial relocation. It was concluded that the Federal Government should consider a group-specific regional policy, directed toward the market-relevant resources of the rural poor and unemployed, rather than toward industry and regional development commissions. (JC)