Ohioan’s personal income growing at slower pace than neighbors

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Ohioan’s personal income growing at slower pace than neighbors

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Ohio’s personal income growth rate over the past year is slower than the national average.

The state’s personal incomes grew by 0.5 percent from the second quarter of 2016 through the second quarter of 2017, according to Pew Charitable Trusts.

That compares to an average 1.2 percent average annual growth rate over the past decade.

Personal income includes Ohio 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.

Federal officials use state personal income to determine how to allocate support to states for certain programs, including funds for Medicaid. State governments use personal income statistics to project tax revenue for budget planning, set spending limits, and estimate the need for public services.

Compared to its neighbors, Indiana personal incomes grew 1.8 percent over the past year, Michigan incomes saw 1.4 percent growth, Pennsylvania had 1.1 percent growth and Kentucky also reported 0.5 percent growth.

Nationally, growth in personal income has been lower than its historical pace, according to Pew.

U.S. personal income increased by the equivalent of 1.6 percent a year from the fourth quarter of 2007 through the second quarter of 2017, compared with the equivalent of 2.7 percent a year over the past 30 years, after accounting for inflation.

North Dakota has enjoyed the fastest annualized growth since the start of the recession at 4 percent, but the state’s personal income has trended down for nearly three years.

Connecticut’s expansion since the end of 2007 slowed to the equivalent of 0.6 percent a years, the lowest in any state.

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