Tuesday, March 25, 2014

Oregon Ranks 5th Highest on Personal Income Growth in 2013

Today's post comes from guest author -- and state employment economist -- Nick Beleiciks.

Oregon’s personal income grew by 3.5 percent in 2013. That's the fifth fastest growth rate among the states, according to the federal Bureau of Economic Analysis. Oregon’s per capita personal income (PCPI), which is total personal income divided by total population, was $40,233. Oregon’s personal income grew faster than the national rate of 2.6 percent and the national PCPI was $44,543. Oregon’s PCPI was 90 percent of the U.S. average PCPI -- 32nd highest -- which reflects a personal income gap that has remained relatively steady over the last nine years.

Oregon’s personal income growth in 2013 was driven by a 3.1 percent increase in net earnings, a 3.9 percent increase in dividends, interest, and rent, and a 4.5 percent increase in transfer receipts. Each personal income category grew faster than the national average. Most states experienced earnings losses caused by civilian federal government furloughs and related reductions, but Oregon’s relatively low concentration of federal employment means the reductions did not slow income growth in Oregon as much as in other states.

North Dakota had the fastest personal income growth at 7.6 percent, while West Virginia has the slowest growth at 1.5 percent. Personal income in each of Oregon’s neighboring states grew faster than the nation in 2013. Idaho’s personal income grew 3.7 percent, Washington’s grew 3.2 percent, Nevada’s grew 3.0 percent, and California’s grew 2.8 percent. Connecticut had the highest state PCPI at $60,847 and Mississippi had the lowest at $34,478. The PCPI of the District of Columbia was $74,513.

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