Kentucky lags in personal income growth

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Since the recession of 2007, the personal income of Kentucky citizens grew at an average  rate of 1.4% – but the average for the rest of the country was 1.9%.

And, in the past year, the United States as a whole saw personal income grow by 2% – but Kentucky’s personal income only grew by 1%.

These findings come from a study by the Pew Charitable Trusts comparing growth in personal income in each state since the recession. In this study, personal income includes

residents’ paychecks, Social Security benefits, employers’ contributions to retirement plans and health insurance, income from rent and other property, and benefits from public assistance programs such as Medicare and Medicaid, among other items. Personal income excludes capital gains.

Most growth in personal income occurred in western states, such as Washington, North Dakota, and Utah. However, since the recession, Tennessee had the 11th-best growth in personal income with an annual growth rate of 2.1%. Indiana annual growth rate since the recession was 1.7%.

Interestingly, the growth rate for both Kentucky and Indiana for the past year was 1%, putting both states toward the bottom of the list.

Here’s a graph comparing Kentucky to the U.S., as well as to neighboring states.

Graph comparing Kentucky to the U.S. and neighboring states in personal income growth (via Pew Charitable Trusts)
Graph comparing Kentucky to the U.S. and neighboring states in personal income growth (via Pew Charitable Trusts)

For the complete study, along with other graphs, visit the article at Pew Charitable Trusts.

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