Special Report
States Where Incomes Are Booming (or Not)
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The combined sum of all income received by all Americans was $12.2 trillion in 2010. It was the end of what many economists consider the worst decade for the American economy since the 1930s. During the Great Recession GDP growth slowed to a crawl, and unemployment climbed to levels not seen in decades. Starting in 2010 the nation began its long process of recovery. In 2015, personal income amounted to $14.0 trillion, a 14.6% increase from five years earlier.
While all states have enjoyed some economic recovery, growth was far from even. North Dakota led the nation with a 27.9% increase in personal income, while Maine’s 4.2% personal income growth was the slowest. To identify the states where income is booming, and the states where it is not, 24/7 Wall St. reviewed personal income data from the Bureau of Economic Analysis for each state over the five years through 2015.
Personal income is the sum of the net earnings of all people from all sources before taxes, the largest component of which is wages and salaries. Most of the states where personal incomes grew the fastest have strong, flourishing industries that helped weather the recession and continue to aid the recovery. In an interview with 24/7 Wall St., Chad Shearer, senior research analyst at the Brookings Institution’s Metropolitan Policy Program, said, “The biggest factor in explaining why some places have recovered faster than others is really their industrial composition.”
Click here to see the states where income is booming (or not).
The U.S. mining sector grew by 36.8% from 2010 through 2014, the most of any industry. While mining accounts for only 2.6% of the national economy, incomes in states with large mining sectors grew the fastest. In North Dakota, where mining accounts for the largest share of state GDP, personal income grew by 27.9% — the fastest in the country.
On the other hand, the government sector experienced the second slowest growth after the utilities sector. In 2013, an automatic federal budget sequestration took place, initiating a chain of state budget cuts as well. “States were not getting the aid that they normally would have, and also saw their tax revenues diminish very quickly. So during the recession, we saw huge, huge spending cuts,” Shearer said. In New Mexico, home to multiple military bases and federal laboratories, government operations accounted for 23.7% of GDP in 2014, the largest share of any state’s government sector. Overreliance on a sector vulnerable to spending cuts partially explains why new Mexico had the sixth slowest five-year personal income growth.
Economic growth is closely related to income growth, and the two almost always move in tandem. In many cases, however, an expanding population can offset sluggish GDP growth. In many Sun Belt states such as Florida, South Carolina, and North Carolina, GDP growth from key industries such as manufacturing and real estate underperformed and were outpaced by most other states. However, these are the states with the largest inbound migration. The additional salaries from new workers and pension incomes from retirees boosted these states’ personal incomes. In states such as Colorado and Texas, both rapid population and GDP growth helped yield some of the fastest growing personal incomes in the country.
Personal income, or the sum of net earnings by all people from all sources, was reviewed in each state and in each year from 2010 to 2015 from the BEA. Income growth rates were calculated from real personal income in 2010 to real personal income in 2015, all in 2009 dollars. The BEA has not yet published real personal income figures for 2014 or 2015. We derived our own estimates of real personal income by adjusting nominal figures from regional and national prices, based on the BEA’s methodology. Due to limited data availability, real personal income estimates for 2014 and 2015 were calculated with 2013 regional prices. Also from the BEA, we considered industry contributions to GDP for 2010 and 2014. Labor force and unemployment came from the Bureau of Labor Statistics. Socioeconomic factors, such as educational attainment rates, poverty rates, and net population change from migration, came from the U.S. Census Bureau’s 2015 American Community Survey (ACS).
These are the states where incomes are increasing the most (and least).
50. Maine
> Personal income growth (2010-2015): 4.2%
> Per capita personal income 2015: $39,415 (10th lowest)
> Unemployment rate: 4.4% (17th lowest)
> Pct. change in labor force (2010-2015): -2.2% (7th lowest)
While personal income across the United States increased by 14.6% from 2010 through 2015, in Maine income increased by only 4.2% over that period. The stagnant income growth is due in part to a sluggish state economy. The largest contributing industries to Maine’s GDP are finance, insurance, and real estate, as well as government. Since 2010, however, these industries have grown at a slower pace in Maine than in nearly any other state in the country. Some of Maine’s smaller industries, such as manufacturing and utilities, have each actually shrunk. Over that time, Maine’s poverty rate increased the second most of any state.
49. Mississippi
> Personal income growth (2010-2015): 7.4%
> Per capita personal income 2015: $37,371 (5th lowest)
> Unemployment rate: 6.5% (4th highest)
> Pct. change in labor force (2010-2015): -2.6% (4th lowest)
Mississippi residents earn some of the lowest incomes in the country, and the state has fared worse than most states since the recession. The largest contributing sectors to the state’s economy — government and manufacturing — grew at a much slower pace in Mississippi than across the country. Perhaps as a result, between 2010 and 2015, personal income in the state grew by 7.4%, nearly half the 14.6% national growth.
The statewide decline in the labor force was a major contributor to the sluggish personal income growth. Mississippi’s labor force fell by 2.6% from 2010 to 2015, the fourth largest of any state.
48. South Dakota
> Personal income growth (2010-2015): 7.4%
> Per capita personal income 2015: $47,016 (10th highest)
> Unemployment rate: 3.1% (3rd lowest)
> Pct. change in labor force (2010-2015): 2.5% (19th highest)
Unlike most states with stagnant personal income, South Dakota’s economy has outpaced most other states in GDP growth. This could mean the workforce has become more productive. South Dakota’s economy grew by 20.8% between 2010 and 2014, compared to a 16.0% nationwide growth. Agriculture, a traditionally low-wage industry, accounts for 11.0% of South Dakota’s total GDP — the largest share of any state — and for about a quarter of GDP growth between 2010 and 2015. Because of the low wages, South Dakota’s relatively robust economic growth has had less of an effect on personal incomes.
Also, despite the slow personal income growth, per capita personal income of $47,016 is 10th highest of all states — this is due largely to the low cost of living in South Dakota.
47. West Virginia
> Personal income growth (2010-2015): 7.6%
> Per capita personal income 2015: $38,355 (7th lowest)
> Unemployment rate: 6.7% (the highest)
> Pct. change in labor force (2010-2015): -3.2% (3rd lowest)
Just 19.2% of West Virginia adults have at least a bachelor’s degree, the smallest such share in the country. Low educational attainment can restrict development of certain industries within a state and hinder economic growth. Between 2010 and 2015, nearly half of West Virginia’s GDP growth came from its mining sector, where relatively few workers are required to have a bachelor’s degree. Meanwhile, sectors such as utilities and information were a drag on the economy.
Total personal income grew by just 7.6%, a slow pace compared to the 14.6% national income growth over that time. Like other states with slow income growth, West Virginia’s labor force dropped, by 3.2%, over the five years through 2015.
24/7 Wall St.46. Maryland
> Personal income growth (2010-2015): 8.2%
> Per capita personal income 2015: $46,319 (13th highest)
> Unemployment rate: 5.2% (24th highest)
> Pct. change in labor force (2010-2015): 2.5% (18th highest)
The average Maryland resident earned $44,431 in 2010, the sixth highest per capita personal income in the nation. Last year, Maryland’s personal income was the 13th highest. While other wealthy states such as Connecticut and Virginia kept pace with the 14.6% national growth, Maryland’s personal income grew by just 8.2%. Maryland relied on government jobs to weather the recession. The government sector comprises 21.2% of the state’s GDP, the third largest share of any state. However, reliance on the government sector may have become a drawback in recent years. According to Andrew Davis, an economist for Moody’s Analytics speaking in 2014 with the the Baltimore Sun, spending cuts and austerity budgets have limited job and wage activity since the recession.
45. New Mexico
> Personal income growth (2010-2015): 8.3%
> Per capita personal income 2015: $37,048 (4th lowest)
> Unemployment rate: 6.6% (3rd highest)
> Pct. change in labor force (2010-2015): -1.7% (9th lowest)
With multiple military bases and federal laboratories, New Mexico’s economy has long been tied to government spending. Government operations accounted for 24.5% of New Mexico’s total GDP in 2010, the largest share of any state. As the federal government tightened its spending in the aftermath of the recession, economic recovery in states such as New Mexico has become more difficult. Over the last five years, New Mexico’s unemployment rate declined by 1.5 percentage points to 6.6%, while the national unemployment rate fell by 4.3 percentage points to 5.3%. Over that time period there was a net outflow of about 27,000 residents, shrinking the pool of potential earners. Personal income grew by just 8.3%, compared to 14.6% nationwide.
44. Iowa
> Personal income growth (2010-2015): 8.3%
> Per capita personal income 2015: $45,578 (17th highest)
> Unemployment rate: 3.7% (9th lowest)
> Pct. change in labor force (2010-2015): 1.4% (25th lowest)
Personal income in Iowa grew by 8.3% between 2010 and 2015, the sixth slowest pace of any state. The main contributors to Iowa’s GDP have not boosted personal income. Finance, manufacturing, and government together account for over half of Iowa’s GDP, which grew by 19.9% from 2010 through 2014, the sixth fastest nationwide. Agriculture, another major industry in the state, grew by 65.8% between 2010 and 2014, far faster than the industry’s 34.5% growth nationwide. Nevertheless, personal income growth trailed the 14.6% national growth. But despite the relatively sluggish income growth, Iowa’s 2015 per capita personal income of $45,578 is slightly higher than the national income level.
43. Alabama
> Personal income growth (2010-2015): 8.7%
> Per capita personal income 2015: $40,662 (16th lowest)
> Unemployment rate: 6.1% (8th highest)
> Pct. change in labor force (2010-2015): -2.3% (6th lowest)
Alabama is one of many states in which an economy centered on slow-growing industries is hindering personal income growth. Manufacturing and government comprise 17.6% and 16.3% of Alabama’s GDP, the two largest contributors to the state’s economy. Both are among the slowest growing industries in the country. Alabama’s labor market may also be less likely to attract individuals in high paying fields. Just 23.5% of state adults have at least a bachelor’s degree, much less than the 30.1% national bachelor’s attainment rate. As in other states with weak income growth, Alabama’s labor force declined over the five years through 2015.
42. Missouri
> Personal income growth (2010-2015): 8.9%
> Per capita personal income 2015: $43,864 (25th highest)
> Unemployment rate: 5.0% (24th lowest)
> Pct. change in labor force (2010-2015): 1.9% (24th highest)
Missouri’s five-year income growth of 8.9% is modest compared to the national income growth of 14.6%. However, personal income in Missouri and across the nation are rising faster than in past years, reflecting a more robust recovery from the recession. Missouri’s finance, insurance, real estate, rental and leasing industry accounts for 18.5% of the state’s economy. Like the nation, the industry’s contribution to GDP is the largest compared with other industries in the state. Manufacturing also accounts for a relatively large share of the economy — both compared to other sectors and to the nation. Personal income in Missouri, according to the BEA, was boosted in the fourth quarter of 2015 due to bonuses paid to workers after the United Auto Workers successfully ratified new contracts.
24/7 Wall St.41. Illinois
> Personal income growth (2010-2015): 9.4%
> Per capita personal income 2015: $44,828 (22nd highest)
> Unemployment rate: 5.9% (12th highest)
> Pct. change in labor force (2010-2015): -1.7% (11th lowest)
Total income grew by only 9.4% in Illinois between 2010 and 2015, far slower than the 14.6% income growth across the country. Lagging income growth in the state is partially attributable to a dwindling labor force. Over five years through 2015, the total number of Illinois workers dropped from 6.6 million to 6.5 million, a 1.7% decrease.
The manufacturing industry is one of the primary drivers of Illinois’ economy. And personal income for workers in the sector was boosted in the fourth quarter of last year by bonuses paid to workers after the United Auto Workers successfully ratified new contracts. However, GDP from the manufacturing sector had not topped the 2012 peak level in either 2013 or 2014.
40. Rhode Island
> Personal income growth (2010-2015): 9.6%
> Per capita personal income 2015: $46,721 (11th highest)
> Unemployment rate: 6.0% (10th highest)
> Pct. change in labor force (2010-2015): -2.1% (8th lowest)
The subpar performance of key industries in Rhode Island since the recession has hindered personal income growth. The finance industry, which accounts for 23.8% of state GDP, grew by by just 12.0% in Rhode Island, versus 17.6% nationwide. The government sector, which comprises 14.0% of state GDP, grew by just 2.9% in Rhode Island, versus 6.2% nationwide.
Edinaldo Tebaldi, an economics professor from Bryant University speaking with the Providence Journal at the end of last year, believes that qualified individuals are leaving Rhode Island. The state’s labor force declined by 2.1% between 2010 and 2015. Over that period, the share of adults with at least a bachelor’s degree also slightly declined.
39. Vermont
> Personal income growth (2010-2015): 10.0%
> Per capita personal income 2015: $43,718 (25th lowest)
> Unemployment rate: 3.7% (9th lowest)
> Pct. change in labor force (2010-2015): -4.2% (2nd lowest)
Vermont has lost a net 2,432 residents over the last five years, one of a handful of states where more people are leaving than arriving. Also, the state’s labor force declined by 4.2%, the second largest decline of any state.
The finance, insurance, and real estate industry accounted for 19.2% of Vermont’s GDP last year, more than any other industry in the state. While the sector has grown by 17.6% between 2010 and 2014 nationwide, it has grown by just 9.1% in Vermont in that time. Slow growth in the state’s largest sector may have hindered personal income growth. Personal income in the state grew by 10.0% since 2010 compared to 14.6% across the United States.
24/7 Wall St.38. New York
> Personal income growth (2010-2015): 10.2%
> Per capita personal income 2015: $45,804 (15th highest)
> Unemployment rate: 5.3% (23rd highest)
> Pct. change in labor force (2010-2015): 0.9% (22nd lowest)
New York’s financial industry accounts for close to a third of GDP, the largest of all sectors in the state and the second-largest share compared to finance sectors in other states. Between 2010 and 2014, the finance, insurance, and real estate sector expanded by 22.7% in New York. Despite the strong industry growth and its dominant role in the economy, however, personal income in the state has grown by 10.2% between 2010 and 2015, lower than the 14.6% personal income growth nationwide. Of all 15 major industries in the Empire State, only four outpaced their respective nationwide growth rate.
37. Pennsylvania
> Personal income growth (2010-2015): 10.4%
> Per capita personal income 2015: $45,649 (16th highest)
> Unemployment rate: 5.1% (25th lowest)
> Pct. change in labor force (2010-2015): 0.7% (21st lowest)
Pennsylvania’s job market is keeping pace with the rest of the nation. Unemployment rates have improved with the nation in recent years to 5.1% in Pennsylvania, in line with national jobless rate of 5.3%. While personal income grew 10.4% between 2010 and 2015, much slower than the 14.6% national growth, when adjusted for the population, Pennsylvania’s personal income per capita grew by 9.6%, somewhat more in line with the national personal income growth per capita of 10.3%.
Pennsylvania’s labor force has grown by only 0.7%, about half the national labor force growth.
36. New Jersey
> Personal income growth (2010-2015): 10.5%
> Per capita personal income 2015: $47,784 (7th highest)
> Unemployment rate: 5.6% (18th highest)
> Pct. change in labor force (2010-2015): -0.3% (16th lowest)
About one-fourth of New Jersey’s GDP comes from its finance, insurance, and real estate industry. While the sector has grown by 17.6% nationwide between 2010 and 2014, in New Jersey it has only grown by only 13.0%. The relatively slow growth of New Jersey’s key sector may have partially held back income growth. Also, New Jersey’s labor force has shrunk by 0.3% over the five years through 2015.
35. Kansas
> Personal income growth (2010-2015): 10.7%
> Per capita personal income 2015: $46,240 (14th highest)
> Unemployment rate: 4.2% (15th lowest)
> Pct. change in labor force (2010-2015): -0.1% (17th lowest)
The finance, insurance, and real estate industry accounts for 15.8% of Kansas’s GDP, more than any other industry in the state. The industry is also expanding rapidly. The value of goods and services from the industry increased by 23.3% between 2010 and 2014, considerably faster than the comparable industry growth nationwide of 17.6%. Personal income in Kansas was also boosted in the fourth quarter of last year by bonuses paid to workers after the United Auto Workers successfully ratified new contracts.
However, the increases across these industries were not enough to spur faster than average wage growth. Personal income in the state only grew by 10.7% over the five years through 2015, far slower than the nationwide 14.6% income growth.
34. Wisconsin
> Personal income growth (2010-2015): 10.9%
> Per capita personal income 2015: $44,940 (21st highest)
> Unemployment rate: 4.6% (19th lowest)
> Pct. change in labor force (2010-2015): 0.4% (19th lowest)
Unemployment dropped significantly across the country and in Wisconsin over the last several years. Wisconsin’s unemployment fell from 8.7% in 2010 to 4.6% in 2015. Over the same time period, per capita personal income climbed modestly from $41,131 to $44,940. Income growth in Wisconsin was largely spurred by the manufacturing as well as finance, insurance, and real estate industries — the state’s two largest sectors. These two industries expanded by 15.6% and 12.1%, respectively. As a result, the two sectors were also the two largest drivers of GDP growth. The utilities industry, on the other hand, contracted by 3.4%.
33. Louisiana
> Personal income growth (2010-2015): 11.0%
> Per capita personal income 2015: $43,405 (24th lowest)
> Unemployment rate: 6.3% (6th highest)
> Pct. change in labor force (2010-2015): 3.6% (13th highest)
Louisiana is one of many states in which relatively slow economic expansion of key sectors has likely slowed income growth. Manufacturing comprises 21.3% of Louisiana’s GDP, the largest share of any sector in the state. From 2010 through 2014, the sector grew by just 2.2%, however, far slower than the 14.6% growth in manufacturing nationwide.
Louisiana is one of just two states where the government sector actually shrank between 2010 and 2014. Due in part to spending cuts from former Governor Bobby Jindal, Louisiana’s government sector, which accounts for roughly 10% of the state’s GDP, contracted by 2.2% between 2010 and 2014.
32. Kentucky
> Personal income growth (2010-2015): 11.3%
> Per capita personal income 2015: $40,048 (13th lowest)
> Unemployment rate: 5.4% (20th highest)
> Pct. change in labor force (2010-2015): -4.9% (the lowest)
Personal income grew by 11.3% in Kentucky over the five years through 2015, slightly slower than the 14.6% national growth. With slower than average growth, per capita income in the state remains among the lower income levels in the nation. The average resident in the state earns $40,048 annually, well below the corresponding $43,557 national figure. Growth in only three of 15 industries in the state outpaced the corresponding national growths. Both the mining and utilities industries in the state actually contracted between 2010 and 2014. Nationwide, the same industries expanded by 36.8% and 5.2%, respectively, over the same time period.
31. North Carolina
> Personal income growth (2010-2015): 11.5%
> Per capita personal income 2015: $40,577 (15th lowest)
> Unemployment rate: 5.7% (15th highest)
> Pct. change in labor force (2010-2015): 3.3% (15th highest)
Personal income is the net earnings of all people from all sources within a state, adjusted to cost of living. North Carolina’s labor force added more people in recent years, growing by 3.3% since 2010 — one of the larger increases in the country. The additional earners contributed to the state’s personal income growth of 11.5%. The larger income amount is now being spread across more people, however. When adjusted for the population, North Carolina’s personal income per capita grew by just 6.1%, the fifth slowest of any state.
30. Ohio
> Personal income growth (2010-2015): 12.4%
> Per capita personal income 2015: $44,410 (23rd highest)
> Unemployment rate: 4.9% (22nd lowest)
> Pct. change in labor force (2010-2015): -2.5% (5th lowest)
Ohio’s GDP growth of 16.4% over the five years through 2014 was slightly greater than the national economic growth of 16.0% during that time. Key growth sectors such as manufacturing and professional and business services significantly outperformed their respective national growth and led Ohio’s GDP growth.
Ohio’s personal income growth would be much greater, however, were it not for the state’s declining population. Between 2010 and 2015, Ohio’s labor force declined by 2.5%, the fifth largest decline in the country. While Ohio’s personal income grew by 12.4%, slower than the 14.6% national growth.
29. Hawaii
> Personal income growth (2010-2015): 12.7%
> Per capita personal income 2015: $37,611 (6th lowest)
> Unemployment rate: 3.6% (6th lowest)
> Pct. change in labor force (2010-2015): 4.7% (9th highest)
Of the total value of goods and services produced in 2015 in Hawaii, 9.4% came from the state’s arts, entertainment, and accommodation industry, the industry’s second largest GDP contribution after only Nevada. The sector’s contribution to GDP also grew by 32.0% through 2014, the third largest such growth compared to other states. Overall, however, the state’s five-year income growth of 12.7% trails the national average income growth of 14.6%. The relatively strong economies in states with booming incomes tend to be especially attractive to Americans looking to relocate. While income in Hawaii is growing slower than it is nationally, the state’s labor force grew by 4.7% over the last five years, considerably faster than the national labor force growth of 1.3%.
Hawaii is home to some of the wealthiest people in the country. However, due to the extremely high cost of living, per capita personal income — which takes cost of living into account — is only $37,611, sixth lowest compared to other states.
28. Virginia
> Personal income growth (2010-2015): 12.9%
> Per capita personal income 2015: $46,325 (12th highest)
> Unemployment rate: 4.4% (17th lowest)
> Pct. change in labor force (2010-2015): 2.0% (22nd highest)
While personal income in Virginia is growing slower than it is nationally, the state is home to some of the wealthiest people in the nation. Virginia’s per capita personal income of $46,325 is 12th highest compared to other states. Similarly, the state’s job market is also relatively healthy, with an unemployment rate of 4.4%, which is lower than the nation’s jobless rate of 5.3%. However, the decline in the jobless rate from five years ago was smaller in Virginia than across the nation.
27. Indiana
> Personal income growth (2010-2015): 13.0%
> Per capita personal income 2015: $41,052 (19th lowest)
> Unemployment rate: 4.8% (20th lowest)
> Pct. change in labor force (2010-2015): 2.9% (16th highest)
Between 2010 and 2014, Indiana’s GDP grew by 12.7%, slower than the national growth of 16.0%. Key sectors such as manufacturing, finance, and government exhibited disappointing growth relative to the nation and partially accounts for Indiana’s relatively slow economic growth.
Indiana’s personal income got a boost, however, from the state’s growing population. Between 2010 and 2015, Indiana’s labor force grew by 2.9%, one of the larger increases in the country. The additional earners helped offset slow GDP growth, ultimately contributing to Indiana’s modest 13.0% five-year personal income growth.
24/7 Wall St.26. Michigan
> Personal income growth (2010-2015): 13.4%
> Per capita personal income 2015: $41,220 (20th lowest)
> Unemployment rate: 5.4% (20th highest)
> Pct. change in labor force (2010-2015): -1.0% (13th lowest)
While personal income in Michigan grew slower over the five years through 2015 than it did nationally, the per capita income growth trailed only a handful of other states. This is due almost entirely to incomes being spread across fewer residents. Over the last five years, 80,039 more people left Michigan than arrived, nearly the largest net population decline from migration.
Michigan’s economy is dominated by its manufacturing sector — 20% of state GDP comes from the manufacturing industry. Value generated by the industry rose by 32.7% between 2010 and 2014, one of the largest such growths. Part of the income growth in Michigan came from a boost in the fourth quarter of last year due to bonuses paid to workers after the United Auto Workers successfully ratified new contracts.
25. Minnesota
> Personal income growth (2010-2015): 13.4%
> Per capita personal income 2015: $47,393 (8th highest)
> Unemployment rate: 3.7% (9th lowest)
> Pct. change in labor force (2010-2015): 2.4% (20th highest)
Between 2010 and 2014, Minnesota’s GDP grew by 16.6%, slightly faster than the 16.0% national growth. The economic growth was partially led by the manufacturing sector, as well as by strong performances in Minnesota’s smaller industries, such as construction, retail, and utilities.
Minnesota’s labor force also grew modestly. The number of workers, and those seeking work, increased by 2.4%, faster than the national labor force growth of 1.3%. Moderate growth across Minnesota’s economy helped the state’s personal income rise by 13.4% over the five years through 2015, a pace only slightly slower than the national 14.6% growth in personal income.
24. Connecticut
> Personal income growth (2010-2015): 14.0%
> Per capita personal income 2015: $56,491 (the highest)
> Unemployment rate: 5.6% (18th highest)
> Pct. change in labor force (2010-2015): -1.2% (12th lowest)
Over the five years through 2015, personal income growth in Connecticut has kept pace with the 14.6% nationwide personal income growth. Still, personal income growth in the Nutmeg State outpaced roughly half of all states despite some signs of economic weakness. Only five of 15 major industries in Connecticut grew faster than they did nationwide between 2010 and 2014. Furthermore, while most states’ labor forces have expanded in recent years, Connecticut’s labor force contracted by 1.2% over the five years through 2015.
23. Tennessee
> Personal income growth (2010-2015): 14.0%
> Per capita personal income 2015: $42,497 (21st lowest)
> Unemployment rate: 5.8% (14th highest)
> Pct. change in labor force (2010-2015): -0.9% (14th lowest)
Tennessee is one of a handful of states where the ratification of contracts at the end of last year between the United Auto Workers and manufacturing companies helped boost incomes. Between 2010 and 2014, Tennessee’s manufacturing industry grew by 23.8%, well above the five-year growth of 14.6% across the nation’s manufacturing sector.
22. South Carolina
> Personal income growth (2010-2015): 14.1%
> Per capita personal income 2015: $38,470 (8th lowest)
> Unemployment rate: 6.0% (10th highest)
> Pct. change in labor force (2010-2015): 4.7% (8th highest)
South Carolina’s GDP grew by 14.7% between 2010 and 2014, slower than the national growth of 16.0% over that time. The largest contributor to the state’s GDP, the finance, insurance, and real estate sector, has underperformed since the end of the recession and may have slowed economic growth.
South Carolina’s personal income received a boost, however, from the state’s rapidly growing population. Between 2010 and 2015, South Carolina’s population grew by 4.1% through migration alone, the fifth largest such increase in the country. The added incomes of new workers helped yield a 14.1% growth in personal income, nearly in line with the national personal income growth.
24/7 Wall St.21. Massachusetts
> Personal income growth (2010-2015): 14.7%
> Per capita personal income 2015: $52,057 (4th highest)
> Unemployment rate: 5.0% (24th lowest)
> Pct. change in labor force (2010-2015): 2.6% (17th highest)
Personal income in Massachusetts grew by 14.7% over the five years through 2015, in line with the national income growth. State residents are still among the nation’s wealthiest Americans. On average, each Massachusetts resident earned $52,057 in 2015, the fourth highest per capita income of all states. Due partially to the high concentration of both highly educated adults as well as science and engineering companies in the Boston area, the professional and business services sector accounts for 16.4% of the state’s economy, the second highest share compared with other states.
20. Florida
> Personal income growth (2010-2015): 14.8%
> Per capita personal income 2015: $40,852 (17th lowest)
> Unemployment rate: 5.4% (20th highest)
> Pct. change in labor force (2010-2015): 5.0% (5th highest)
Florida’s GDP grew by 14.7% between 2010 and 2014, somewhat slower than the 16.0% national growth. The state’s personal income, on the other hand, received a boost, however, from its rapidly expanding population. Over the five years through 2015, Florida’s population has grown by 6.7% through migration alone, the second largest such increase in the country. The additional incomes of new workers and retirees receiving benefits partially contributed to Florida’s 14.8% growth in personal income.
19. Montana
> Personal income growth (2010-2015): 14.9%
> Per capita personal income 2015: $40,021 (12th lowest)
> Unemployment rate: 4.1% (12th lowest)
> Pct. change in labor force (2010-2015): 4.4% (10th highest)
Personal income in Montana went up by 14.9% between 2010 and 2015, slightly outpacing national income growth. Higher incomes were largely spurred by a 14.7% growth in the educational services, health care, and social assistance sector. National growth in the sector was a slightly slower 13.7%. Along with educational services, health care, and social assistance, GDP growth in six other sectors in Montana outpaced the growth of the corresponding national sectors.
18. New Hampshire
> Personal income growth (2010-2015): 15.0%
> Per capita personal income 2015: $47,374 (9th highest)
> Unemployment rate: 3.4% (4th lowest)
> Pct. change in labor force (2010-2015): 0.4% (18th lowest)
New Hampshire is one of two states where the government sector has actually shrunk since 2010. The state’s total GDP grew by just 11.9%, while national GDP grew by 16.0%. The state’s labor force has also grown relatively slowly, expanding by just 0.4%, while the national labor force grew 1.3%. Nevertheless, New Hampshire’s personal income has kept pace with the rest of the country, and even more so when adjusted for population. The state’s personal income per capita has grown by 13.8% between 2010 and 2015, the fifth fastest growth in the nation.
17. Delaware
> Personal income growth (2010-2015): 15.2%
> Per capita personal income 2015: $43,018 (23rd lowest)
> Unemployment rate: 4.9% (22nd lowest)
> Pct. change in labor force (2010-2015): 7.6% (3rd highest)
Personal income in Delaware grew by 15.2% between 2010 and 2015, slightly more than national income grew over the past half decade. Relative to the size of its economy, Delaware has the largest finance, insurance, and real estate sector in the country, with 41% of its GDP coming from those combined industries. GDP generated by this sector actually increased by just 10.7% between 2010 and 2014, slower than the national growth in the sector.
16. Idaho
> Personal income growth (2010-2015): 15.2%
> Per capita personal income 2015: $36,991 (3rd lowest)
> Unemployment rate: 4.1% (12th lowest)
> Pct. change in labor force (2010-2015): 4.8% (7th highest)
Three industries have been a drag on Idaho’s economy since 2010. The mining, utilities, and information sectors all contracted by at least 2.9%. Still, faster-than-average GDP gains in several other industries such as manufacturing and government were enough to drive personal income growth up 15.2% from 2010 through 2015. Income per capita in Idaho, however, remains among the lowest in the country. The average resident in the state earns only $36,991 per year, less than in all but two other states.
15. Nebraska
> Personal income growth (2010-2015): 15.4%
> Per capita personal income 2015: $48,547 (5th highest)
> Unemployment rate: 3.0% (2nd lowest)
> Pct. change in labor force (2010-2015): 2.0% (23rd highest)
Few states have maintained a lower unemployment rate in the years following the recession than Nebraska. The state’s 2010 unemployment rate of 4.6% and its 2015 rate of 3.0% were each the second lowest in the country at the time. While it is not always the case, consistently low unemployment can be a sign of a healthy, growing economy. It may also partially explain Nebraska’s 15.4% income growth between 2010 and 2015, which was faster than the nation’s income growth. A significant portion of Nebraska’s personal income growth came from its sizeable agriculture sector.
14. Arizona
> Personal income growth (2010-2015): 15.4%
> Per capita personal income 2015: $36,816 (2nd lowest)
> Unemployment rate: 6.1% (8th highest)
> Pct. change in labor force (2010-2015): 2.0% (21st highest)
Arizona was hit especially hard during the recession. While the state has largely recovered and personal income in the state is growing even faster than the nation, the state is still among the poorest in the country. Arizona residents earn, on average, $36,816 annually, the second lowest per capita income of all states. Also, as was the case in most states, Arizona’s poverty rate worsened even as personal income rose.
13. Georgia
> Personal income growth (2010-2015): 15.8%
> Per capita personal income 2015: $40,383 (14th lowest)
> Unemployment rate: 5.9% (12th highest)
> Pct. change in labor force (2010-2015): 1.6% (25th highest)
Personal income in Georgia grew by 15.8% percent between 2010 and 2015, 1.2 percentage points faster than the nationwide growth. Incomes in the state increased from $36,677 per capita in 2010 to $40,383 per person in 2015. As was the case in many other states, the utilities industry has posted negative growth since 2010. However, strong growth in other industries, including manufacturing and professional and business services were more than enough to offset the drag on the economy from the utilities sector.
12. Arkansas
> Personal income growth (2010-2015): 15.8%
> Per capita personal income 2015: $40,904 (18th lowest)
> Unemployment rate: 5.2% (24th highest)
> Pct. change in labor force (2010-2015): -1.7% (10th lowest)
Personal income in Arkansas rose by 15.8%, faster than the national growth of 14.6%, even as the labor force declined by 1.7% between 2010 and 2015 — one of two states where the labor force shrank and personal income increased faster. Real per capita personal income increased from $36,001 in 2010 — the 10th lowest in the country — to $40,904 in 2015 — the 18th lowest. One of the largest shares of income growth in the state came from Arkansas’ substantial manufacturing sector, which represents 14.1% of total GDP.
11. Nevada
> Personal income growth (2010-2015): 16.2%
> Per capita personal income 2015: $39,316 (9th lowest)
> Unemployment rate: 6.7% (the highest)
> Pct. change in labor force (2010-2015): 4.9% (6th highest)
Nevada’s GDP has grown by 12.9% between 2010 and 2014, trailing the 16.0% national GDP growth. The arts and entertainment industry, the biggest contributor Nevada’s GDP, grew at a slower pace than the industry nationwide. Personal income in Nevada got a boost, however, from the state’s rapidly expanding workforce. Nevada’s labor force increased by 4.9% between 2010 and 2015, the sixth most of any state. The additional incomes from Nevada’s new workers contributed to the state’s personal income growth, which at 16.2% was greater than the 14.6% corresponding national.
10. Oregon
> Personal income growth (2010-2015): 16.5%
> Per capita personal income 2015: $39,848 (11th lowest)
> Unemployment rate: 5.7% (15th highest)
> Pct. change in labor force (2010-2015): -0.7% (15th lowest)
Personal income went up in Oregon by 16.5% between 2010 and 2015, outpacing national income growth. Despite the overall positive trend, several negative measures suggest that incomes in the state are only rising for a select few. Like in many other states, despite the rise in personal income, the poverty rate also increased in the last five years, from 15.8% to 16.6%. Furthermore, while the vast majority of states with rapidly rising incomes had an influx of working-age residents, Oregon was a notable exception. The state’s labor force declined by 0.7% over the five years since 2010.
9. Alaska
> Personal income growth (2010-2015): 17.3%
> Per capita personal income 2015: $48,299 (6th highest)
> Unemployment rate: 6.5% (4th highest)
> Pct. change in labor force (2010-2015): 0.5% (20th lowest)
Personal income in Alaska grew faster than it did nationally even as income earners left the state. Alaska is the only state that lost more residents than it gained through migration between 2010 and 2015 and still managed to have above-average income growth. Although the state’s unemployment rate dropped over that period, 6.5% of the workforce is still unemployed, the fourth highest jobless rate of all states. Mining contributed to five-year income growths in a number of other states. While Alaska’s mining industry accounts for 26.5% of the state’s economy — the second highest such share of all state mining industries — five years ago mining accounted for close to 30% of the economy.
8. Washington
> Personal income growth (2010-2015): 18.5%
> Per capita personal income 2015: $45,358 (18th highest)
> Unemployment rate: 5.7% (15th highest)
> Pct. change in labor force (2010-2015): 0.9% (24th lowest)
Half a decade ago, the average resident in Washington earned $40,714, about $4,600 less than per capita income across the state in 2015. Economic expansion was primarily driven by growth across several key industries. The public sector, which accounts for 14.1% of the state’s GDP, expanded by 9.4% between 2010 and 2014, considerably faster than the 6.2% sector growth nationwide. Home to Microsoft’s headquarters, Washington’s information industry also more than doubled the pace of the industry’s growth nationwide.
7. Wyoming
> Personal income growth (2010-2015): 18.6%
> Per capita personal income 2015: $52,833 (3rd highest)
> Unemployment rate: 4.2% (15th lowest)
> Pct. change in labor force (2010-2015): 0.9% (23rd lowest)
According to the EIA, Wyoming’s natural resources provide more energy to other parts of the country than any other state. Some form of energy — coal, natural gas, crude oil — is produced in all but one of Wyoming’s 23 counties. Wyoming’s mining sector accounts for 34% of the state’s GDP, the highest such contribution compared to other state mining sectors. For residents employed in mining, incomes are no longer increasing at the rate they were, likely because of the recent energy sector downturn. Personal income in the state overall, however, remains high and continues to rise. This may be due to income earned through means other than wages — income from Wyoming property, for example, has risen substantially in recent years.
24/7 Wall St.6. Oklahoma
> Personal income growth (2010-2015): 18.8%
> Per capita personal income 2015: $45,070 (20th highest)
> Unemployment rate: 4.2% (15th lowest)
> Pct. change in labor force (2010-2015): 4.2% (11th highest)
Only a handful states had a bigger income spike than Oklahoma over the last five years. In that time period, information was the only sector to put a drag on the state economy, and the expansion of a majority of sectors in the state outpaced the corresponding national growth. Rising incomes are likely partially attributable to an expanding population. Oklahoma’s labor force increased 4.2% between 2010 and 2015, considerably faster than the corresponding 1.3% national growth.
5. Colorado
> Personal income growth (2010-2015): 19.9%
> Per capita personal income 2015: $45,142 (19th highest)
> Unemployment rate: 3.9% (10th lowest)
> Pct. change in labor force (2010-2015): 3.8% (12th highest)
Personal Income in Colorado increased by nearly 20% between 2010 and 2015, one of the sharpest such increases in the country. Every major economic sector in the state expanded over that time period, and two-thirds outpaced their national growth. Rapidly increasing incomes were also likely spurred by an increasing labor force and a decreasing unemployment rate. Between 2010 and 2015, Colorado’s labor force grew by 3.8% as unemployment decreased by 4.8 percentage points, each outpacing the corresponding national rates. Over that same time period, the state’s poverty rate dropped from 13.4% to 12.0%, one of the most drastic drops in the country.
4. Utah
> Personal income growth (2010-2015): 20.3%
> Per capita personal income 2015: $36,764 (the lowest)
> Unemployment rate: 3.5% (5th lowest)
> Pct. change in labor force (2010-2015): 8.0% (2nd highest)
While personal income in Utah grew by 20.3% between 2010 and 2015 — nearly the fastest growth of all states — Utah residents have some of the nation’s lowest incomes. Utah’s per capita income of $36,764 is the lowest in the nation. Still, the state’s poverty rate of 11.7% is among the lower rates nationwide, and the state’s jobless rate of 3.5% is nearly the lowest. Despite the low per capita personal income, the income growth and relatively strong economic factors are attracting people to the state. Utah’s labor force grew by 8% between 2010 and 2015, the second fastest such growth nationwide.
3. California
> Personal income growth (2010-2015): 22.7%
> Per capita personal income 2015: $42,909 (22nd lowest)
> Unemployment rate: 6.2% (7th highest)
> Pct. change in labor force (2010-2015): 3.5% (14th highest)
Personal income in California grew by 22.7% between 2010 and 2015, the third-fastest growth in the country. The contribution to GDP from California’s information sector — which includes many companies in Silicon Valley — increased by 18.4% between 2010 and 2014. This was the eighth largest such growth nationwide. Now, the sector accounts for 8.1% of the state’s economy, the second largest share of all states. California’s recent income growth has been even more robust, increasing by 6.0% last year, the largest increase in any state.
2. Texas
> Personal income growth (2010-2015): 23.5%
> Per capita personal income 2015: $44,241 (24th highest)
> Unemployment rate: 4.5% (18th lowest)
> Pct. change in labor force (2010-2015): 6.8% (4th highest)
Like in a number of other largely energy-dependent states, the dramatic five-year aggregate income growth in Texas has slowed in the past year. The state’s mining sector accounts for 13.5% of Texas GDP, the sixth largest share compared with other states. While the state’s mining sector grew 65.7% between 2010 and 2014 — the fifth largest growth from mining nationally — growth over the last year has been far less remarkable. In fact, Texas’ income grew by just 4.0% in 2015, in line with the overall national income growth.
Despite the mining sector’s tepid one-year growth, personal income in Texas was boosted in the fourth quarter of last year by bonuses paid to workers after the United Auto Workers successfully ratified new contracts.
1. North Dakota
> Personal income growth (2010-2015): 27.9%
> Per capita personal income 2015: $54,448 (2nd highest)
> Unemployment rate: 2.7% (the lowest)
> Pct. change in labor force (2010-2015): 9.5% (the highest)
The mining industry has been one of the primary drivers of income growth over the last five years. This was especially the case in North Dakota, where personal income grew by 27.9% over from 2010 to 2015, by far the largest income boom nationwide. Recently, however, the sector has waned significantly. Earnings in mining declined by 5.2% from 2014 to 2015 nationally, and the sector drove down income growth in North Dakota and in several other state economies that are highly dependent on the energy sector in the last year.
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