Pew report: Colorado personal income growth below the national average in first quarter
(The Center Square) – Personal income in Colorado grew almost 3% less than the national average during the first quarter of 2021, according to a new report by Pew Trusts.
According to the report, Colorado saw its personal income grow by 11.8% while the national growth rate was 14.4%. Only Wyoming, Maryland, New York, and Connecticut tallied lower personal income growth than the Centennial State.
The report synthesized data from the U.S. Bureau of Economic Analysis’ tables for quarterly state personal income and annual state personal income. It calculated personal income by comparing income from paychecks, Social Security benefits, and other public assistance programs against realized and unrealized capital gains from investments.
“More than half of states recorded their strongest personal income growth ever in the first quarter of 2021 as the economic recovery accelerated,” the report says. “Multiple rounds of pandemic-related government benefits drove year-over-year gains in every state, while earnings—the bulk of personal income—also edged up in most states.”
However, the report stops short of applauding the economic achievements of several states. The report found that if Congress had not passed its two mammoth COVID-19 relief bills, Colorado would have been among 18 other states to see a year-over-year decline in personal income.
According to the data, Colorado saw its earnings grow by just 1.25% when compared to the first quarter of 2020. At the same time, Colorado saw a 90.7% increase in government transfer payments.
Without these transfers, Colorado would have seen a 0.02% decrease in personal income growth, the data shows.
One of the primary reasons for Colorado’s stagnating personal income growth was sluggish earnings growth. For comparison, Utah was among the top states for personal income growth with a 19.1% increase while earnings in the state increased by more than 8% over the same time frame.
Excluding government assistance, Utah lead the nation in personal income growth with a 4.9% increase in 2021’s first quarter, the report says.
Ten states saw their earnings fall in the first quarter, the report says. They include Alaska, Hawaii, Louisiana, Wyoming, Nevada, New Jersey, New Mexico, New York, North Dakota, and Oklahoma.
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