Informal social networks are important for understanding employment in general and rural employment in particular Characteristics of social relations which enhance "social capital" are connectedness, trustworthiness, social support, norms and sanctions, and openness to goal substitution. Their relationship to four structural elements of groups are discussed (the frequency of contact, extent of closure, multiplicity of relations, and mobility. Access to employment, socialization and training, new business opportunities, labour, opportunities for collective action, and a climate for economic activity are all dependent on the development and utilization of informal networks. This means that changes in the relative importance of kin and friendship relations, the division of gender roles, the family structure, social cohesion and political impact are all crucial to consider when dealing with rural employment issues. Several policy issues arise, namely the importance of social infrastructure, the maximization of community-level involvement, the provision of social support institutions, and the enhancement of inter-organizational communication.