The overall economy is still in a state of fluctuation, but many American workers are seeing more money in their paychecks, according to the Q2 2011 State Personal Income report from the Bureau of Economic Analysis.
State personal income grew by an average of 1.1 percent during Q2 2011. Although that’s slower than the 2.1 percent growth seen during Q1, it’s still a positive sign for the national economy, as most states and industries continue to raise pay.
Personal income growth ranged from 2.2 percent in Nebraska and South Dakota to .7 percent in Washington and Georgia.
On the upside, every state saw increased pay in the healthcare and professional services industries. The farming, mining, and durable goods manufacturing industries are what pushed income up in the fastest-growing states. It’s also important to note that earnings in the construction industry – which suffered significant losses during the recession – grew for the second consecutive quarter.
On the downside, the growth in state personal income is even with the levels we saw in the last two quarters of 2010, partially because inflation slowed. During Q1, several factors pushed income higher, including a reduction in the personal contribution rate for Social Security, a provision of tax relief, unemployment insurance reauthorization, and the Job Creation Act of 2010.
