September 24, 2021
According to projections provided by the United States Bureau of Economic Analysis (BEA), state personal income declined 21.8% at an annual rate in the second quarter of 2021, after gaining 56.9% in the first quarter. The fall in transfer receipts was the main contributor to personal income declines in all 50 states and the District of Columbia in the second quarter of 2021. Across all states, the percent change in personal income ranged from –10.1% in the District of Columbia to –34.0% in West Virginia.
In the second quarter of 2021, transfer receipts fell by $1.7 trillion, accounting for more than the entire $1.3 trillion fall in personal income.
Transfer receipts
The decline in transfer receipts was mostly due to lower direct economic impact payments granted by the Coronavirus Response and Relief Supplemental Appropriations Act and the American Rescue Plan Act, as well as lower state unemployment insurance compensation. Every state’s transfer receipts fell, from –$2.5 billion in the District of Columbia to –$185.6 billion in California.
Earnings
Earnings in the United States grew 10.7% in the second quarter of 2021, following a 2.6% gain in the first quarter. The increase in earnings reflected the economy’s sustained recovery following the partial economics lockdown that began in the first quarter of 2020, following the outbreak of COVID-19.
In 21 of the 24 industries for which BEA publishes quarterly estimates, earnings increased. The leading contributors to overall earnings increase were accommodation and food services; professional, scientific, and technical services; and farming. The percentage change in earnings ranged from 1.8% in New Hampshire to 24.6% in North Dakota across all states.
Property income
Property income (dividends, interest, and rent) grew 4.4% in the second quarter of 2021, following a 0.4% decrease in the first. The percentage change in property income varied from 2.1% in Hawaii and Mississippi to 7.3% in Utah across all states.
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