State’s Personal Income Grew 5.4% in First Quarter
Connecticut’s personal income growth grew 5.4% in the first quarter of 2022, fourth highest among the New England states and 20th in the country.
Connecticut’s $82,918 per capita income remains the second highest in the U.S., trailing only Massachusetts ($83,229), according to new data from the U.S. Bureau of Economic Analysis.
The state’s personal income growth—which measures earnings, transfer receipts, and property income—is a key indicator of economic performance.
Connecticut’s personal income growth ranked 42nd in 2021, extending a multi-year period of sluggish gains.
A Pew Charitable Trusts report revealed that if it were not for unemployment benefits and federal assistance, growth would have declined in 2020.
Regional, U.S. Growth
New Hampshire led the New England region in the first quarter with 7.7% growth, followed by Vermont (7.4%), Massachusetts (7.1%), Connecticut, Rhode Island (5.1%), and Maine (5%).
The national rate was 4.8%.
Net earnings—representing salaries and wages—grew $3.98 billion (8.5%) in the first quarter, two-tenths of a percentage point higher than the national average.
The finance and insurance, professional, scientific, and technical services, and durable goods manufacturing sectors posted the largest percentage increases in net earnings for the quarter.
Dividends, earnings, and rent grew 4.4%.
‘No Small Task‘
Transfer receipts from the federal government declined $674 million, or 5.9%, the 12th largest decrease in the country.
“Connecticut could be a national economic leader, but our focus is not where it needs to be,” CBIA president and CEO Chris DiPentima said.
“Lawmakers must focus on the issues we are hearing about every day from people across the state. Now more than ever, we need to work to combat Connecticut’s labor shortage and soaring inflation.
“If we do this, Connecticut can reach its full potential and become a national leader. But the work required to get there is no small task.”
South Dakota led all states in personal income growth at 8.5%, followed by North Dakota (8.2%), Iowa (8.1%), Idaho (7.7%), and New Hampshire (7.7%).
Hawaii had the slowest growth last quarter at 1.3%, followed by Washington (1.9%), Louisiana (2%), Alaska (2%), and Arizona (2.4%).
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