The current study explores that the quality of life is intensely influenced by our living environment, including access to education, healthcare, employment, and culture. Living in rural or urban areas has distinct effects on the local labor market, including the sector and occupation composition, working arrangements, and education requirements. However, 56% of the total population of the world resides in urban and 44% in rural areas, it is essential to consider the distinct conditions and labor market characteristics of both settings when analyzing socioeconomic development. Research shows significant differences in labor force participation, labor underutilization, and employment quality between rural and urban areas. Sustainable development and decent work present different challenges in each setting, emphasizing the need for directed policies and more research sought at progressing workers' conditions universally. The COVID-19 pandemic has also affected both rural and urban areas, making it necessary to monitor and address the evolving situation in both settings for an inclusive recovery. Overall, recognizing the conditions of all labor force and the differences between rural and urban labor markets this research has produced policies recommendations for both urban and rural market employments opportunities for achieving decent work for all.