Well, it’s official. You made less on average last year than the year before and, living in Minnesota, your personal income declined faster than the country as a whole.
Per capita personal income (total personal income divided by population) dropped 3.3 percent in the Gopher state, while the nation as a whole saw a 2.6 percent drop, according to estimates released today by the U.S. Bureau of Economic Analysis (BEA).
Minnesota’s per capita personal income averaged $41,552 in 2009, down from $42,953 in 2008. Minnesotans are relatively better off than the country as a whole, however, as per capita income is 6 percent above the national average of $39,138.
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Total personal income declined 2.6 percent statewide from $224.7 billion to $218.8 billion, compared with a national decline of 1.7 percent.
Across the United States changes ranged from a -4.8 percent drop in total personal income in Nevada to 2.1 percent growth in West Virginia (one of six states with a personal income gain in 2009). Inflation, as measured by the national price index for personal consumption expenditures, fell to 0.2 percent in 2009 down from 3.3 percent in 2008, according to the BEA.
While the nation as a whole suffers from the recession across the board, the particulars in any given state drive the story on personal income growth and declines.
South Dakota was the only neighboring state to experience a larger drop than Minnesota, 4.4 percent in per capita income and 3.5 percent in total income for the year, which was farm related, according to the BEA. But that bounced back at the end of the year as South Dakota, along with North Dakota, Iowa, Nebraska and Kansas, posted strong growth in the fourth quarter, also driven by farm income.
Of the six states where income grew, Maryland and Virginia benefited from commuters who work in the District of Columbia, according to the BEA. Slight growth in Maine, Kentucky and Hawaii saw a rise in transfer receipts (government benefits payments) offsetting earnings declines.
Nevada’s 4.8 percent decline in total personal income, the second largest decline among states since 1969, is mostly accounted for by construction and the hotel and casino industry. Wyoming’s 3.9 percent decline was mining and construction related. Michigan’s 3.0 percent decline reflected the auto industry woes and large losses in durable goods manufacturing.
Declines in New York (-3.4 percent) and Connecticut (-2.9 percent) were primarily concentrated in the finance industry. Connecticut also saw large manufacturing and construction declines. The industries contributing the most to the 2.5 percent fall in personal income in California (-2.5 percent), Arizona and Florida (both -2.7 percent) were construction and manufacturing related.
Links to all of the regional statistics underlying the BEA news release, along with mapping and charting software and a detailed methodology, are available at here.