Personal income by state, 3rd quarter 2021

The Bureau of Economic Analysis has issued the following press release: 

State personal income increased 2.6 percent at an annual rate in the third quarter of 2021 after decreasing 20.2 percent in the second quarter, according to estimates released today by the U.S. Bureau of Economic Analysis (BEA) (table 1). The percent change in personal income across all states ranged from 6.7 percent in Kentucky to –4.3 percent in North Dakota.

In the third quarter of 2021, increases in earnings and property income (dividends, interest, and rent) more than offset a decrease in transfer receipts (chart 1).

Earnings. For the nation, earnings increased 9.3 percent in the third quarter of 2021 after increasing 14.4 percent in the second quarter (table 2). The increase in earnings reflected the continued economic recovery following the partial economic shutdown that began in the first quarter of 2020 after the start of the COVID-19 pandemic.

• In Kentucky, the state with the largest increase in personal income, increases in earnings in healthcare and social assistance; and transportation and warehousing were the leading contributors to the increase in personal income in the third quarter (table 3).
• In Colorado, the state with the second largest increase in personal income, increases in earnings in professional, scientific, and technical services; and mining were the leading contributors to the increase in personal income in the third quarter.

Earnings increased in 21 of the 24 industries for which BEA prepares quarterly estimates (table 4). Professional, scientific, and technical services; accommodation and food services; and state and local government were the leading contributors to the overall growth in earnings. The percent change in earnings across all states ranged from 15.8 percent in Hawaii to –1.6 percent in North Dakota (table 2).

Property income. Property income increased 3.3 percent for the nation in the third quarter of 2021 after increasing 3.7 percent in the second quarter. The percent change in property income across all states ranged from 4.9 percent in Oregon to 1.6 percent in Connecticut (table 2).

Transfer receipts. Transfer receipts decreased 15.6 percent for the nation in the third quarter of 2021 after decreasing 72.6 percent in the second quarter. The decrease in transfer receipts was due to decreases in state unemployment insurance compensation and all other transfer receipts. The decrease in state unemployment compensation was due in part to the expiration of Pandemic Unemployment Compensation Payments (PUCP) benefits, and to an improved labor market. The decrease in all other transfers was due mostly to lower Economic Impact Payments in the third quarter. The percent change in transfer receipts across all states ranged from 4.1 percent in Kentucky to –25.4 percent in Massachusetts (table 2).

• In North Dakota, the state with the largest decrease in personal income, decreases in transfer receipts and farm earnings were the leading contributors to the decrease in personal income in the third quarter.
• In New Hampshire, the state with the second largest decrease in personal income, decreases in transfer receipts and in management of companies' earnings were the leading contributors to the decrease in personal income in the third quarter.