Personal Income by State Report Shows Declines Across the Country
State personal income decreased 21.8 percent at an annual rate in the second quarter of 2021 after increasing 56.9 percent in the first quarter, according to estimates just released by the U.S. Bureau of Economic Analysis (BEA).
In the second quarter of 2021, the decrease in transfer receipts was the leading contributor to personal income declines in all 50 states and the District of Columbia.
The percent change in personal income across all states ranged from –10.1 percent in the District of Columbia to –34.0 percent in West Virginia.
Transfer receipts decreased $1.7 trillion for the nation in the second quarter of 2021, accounting for more than the entire $1.3 trillion decrease in personal income (chart 1).
The decrease in transfer receipts primarily reflected a reduction in direct economic impact payments provided by the Coronavirus Response and Relief Supplemental Appropriations Act and the American Rescue Plan Act and a decrease in state unemployment insurance compensation.
Transfer receipts decreased in every state, ranging from –$2.5 billion in the District of Columbia to –$185.6 billion in California
For the nation, earnings increased 10.7 percent in the second quarter of 2021 after increasing 2.6 percent in the first quarter.
The increase in earnings reflected the continued economic recovery following the partial economic shutdown that began in the first quarter of 2020 after the start of the COVID-19 pandemic.
Earnings increased in 21 of the 24 industries for which BEA prepares quarterly estimates.
Accommodation and food services; professional, scientific, and technical services; and farming were the leading contributors to the overall growth in earnings. The percent change in earnings across all states ranged from 1.8 percent in New Hampshire to 24.6 percent in North Dakota.
Property income (dividends, interest, and rent) increased 4.4 percent for the nation in the second quarter of 2021 after decreasing 0.4 percent in the first quarter. The percent change in property income across all states ranged from 2.1 percent in Hawaii and Mississippi to 7.3 percent in Utah.
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