This report, based on the school-to-work transitions surveys (SWTSs) run in 2012-2013, assesses the labour market conditions of youth in rural and urban areas and offers insights into prospects for fundamental transformations of rural sectors within the development process. While confirming some blurring between rural and urban areas in terms of sectoral distribution of employment, the report concludes that many countries – especially the low-income countries – have a long way to go in the diversification of rural economies beyond agriculture and petty trades and even further in building the capacity of rural labour markets to generate decent employment opportunities for young people.