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Arkansas Personal Income – 2019:Q1

By , June 25, 2019 12:09 PM

Arkansas total personal income increased at an annual rate of 1.8% in the first quarter, well below the national growth rate of 3.4%.  Arkansas’ growth for the quarter ranked it as the 6th slowest-growing state in the nation.   First-quarter growth represented a sharp slowdown from the fourth-quarter growth rate of 6.8% (which was revised downward from the originally-reported 7.5% rate).  Over the past four quarters, Arkansas personal income has expanded by 3.5%, compared to an average U.S. growth rate of 3.8%.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

A number of the slowest-growing states in the first quarter were midwestern states which (like Arkansas) suffered a quarter-to-quarter decline in farm income.  Arkansas farm income declined by 19% in the first quarter (a 58% annualized rate), contributing a negative 1.6 percentage points to the overall growth in income.  In part, the declines in farm incomes in the mid-west and mid-south are related to a temporary boost in the fourth quarter of 2018 from payments made under USDA’s Market Facilitation Program, which was implemented to assist farmers affected by tariffs and reduced exports.  Payments under this program began in the fourth quarter and extended into the first quarter of 2019, but at a slower pace.  Looking past the volatile quarter-to-quarter fluctuations, Arkansas farm incomes in the first quarter were up 3.9% from the same time a year earlier.

As shown in the table below, the general decline in Farm Income was reflected in the earnings breakdown by a sharp decline in Farm Proprietors’ income.  Another component that contributed to slower growth in the first quarter was a decline in Dividends, Interest, and Rent.  Today’s report from the Bureau of Economic Analysis noted that this component declined in all 50 states in the first quarter, after a pronounced surge in the fourth quarter.  It is not uncommon to see year-end spikes in dividend income (followed by first-quarter declines), especially when end-of-year changes in the tax code provide incentives for front-loading payments.  In this case, however, we are aware of no specific tax law changes that would account for this particular pattern.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

In contrast to the declines in Farm Income and Dividends, Interest, and Rent, Arkansas workers saw growth in wages, salaries and supplements that exceeded national growth rates.  Personal Current Transfer Receipts contributed to income growth on both the state and national levels.  According the the BEA, “The increase in transfer receipts was due to an increase in refundable tax credits (the child tax credit and the Affordable Care Act premium tax credit), and a 2.8 percent cost of living increase in Social Security benefits.”

A breakdown of earnings by industry shows some additional specific sources of income gains and losses.  For both the state and the nation, relatively strong earnings growth was seen in retail trade as well as other major service-providing sectors.  One area of relative strength for Arkansas was in manufacturing, where earnings growth contributed 0.24 percentage points to the state’s growth rate compared to only 0.03 percentage points for the U.S.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Arkansas Personal Income – 2018:Q4

By , March 26, 2019 3:35 PM

Arkansas total personal income surged at an annual rate of 7.5% in the fourth quarter of 2018, outpacing the U.S. growth rate of 5.2% and ranking as the 5th fastest-growing state in the nation.  The sharp increase was largely attributable to spike in farm income, which increased at an annual rate of 385%.  The increase in farm income was not unique to Arkansas:  The only states to outpace Arkansas’ growth rate in the fourth quarter were the agricultural states of  South Dakota, Iowa, Nebraska and North Dakota.  Even without the volatile farm income component, however, Arkansas personal income increased at a rate of 4.7% — essentially the same rate as the U.S. total.

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Today’s report from the Bureau of Economic Analysis also included revised quarterly estimates for 2018:Q1-2018:Q3.  As shown in the figure below, Arkansas growth was revised higher in each of the first three quarters of the year.  The cumulative impact was to increase year-over-year growth by about one-quarter of a percentage point.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Total earnings contributed 5.27 percentage points to the Arkansas personal income growth rate in the fourth quarter.  As shown in the table below, about half of that growth contribution was attributable to the farming sector.  Other notable contributors included Health care and social assistance, Management of companies and enterprises, and Durable goods manufacturing.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

The fourth-quarter surge in personal income translated to an uptick in per capita income, which reached $43,312.   This figure represents 79.5% of average per capita personal income for the U.S.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Arkansas Personal Income – 2018:Q2

By , September 25, 2018 1:27 PM

Total personal income increased at an annualized rate of 5.1% in the second quarter of 2018, recording the 7th highest growth rate among the 50 states.  Nationwide, personal income rose at a rate of 4.2% for the quarter.  The news release from the Bureau of Economic Analysis noted that Arkansas was one of nine states where the volatile farm earnings component contributed one-half a percentage point or more to increases in personal income.  At a 91% annualized growth rate, farm income actually contributed over a full percentage point to Arkansas personal income growth.  Excluding farm income, Arkansas incomes expanded at a 4.1% rate, slightly higher than the 4.0% national average.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Among other major components, wage and salary growth, plus supplements, grew slightly faster in Arkansas than the U.S. average.  Proprietors’ income in Arkansas was boosted by a 111% increase in Farm proprietors’ income, but nonfarm proprietors’ income rose at a rate of only 4.5% — matching the nationwide average.  Growth in Dividends, interest, and rent (3.7%) exceeded the U.S. growth rate (3.3%) while Personal current transfer receipts grew at a slightly slower rate (3.9% for Arkansas compared to 4.1% for the U.S.).

Percent changes from quarter to quarter can be quite volatile, so a better measure of longer term growth trends is the percentage change from a year earlier.  By this measure, From 2017:Q2, Arkansas personal income increased 4.3%, compared to an gain of 4.6% nationwide.  As illustrated in the chart below, Arkansas income growth has generally been slower than the U.S. average in recent years.  From 2015:Q1, year-over-year growth has averaged 3.2% in Arkansas, 0.8% below the nationwide average of 4.0%.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Earnings by Industry
Total earnings (which include wages and salaries, supplements and proprietors’ income) also grew faster than the U.S. average, 3.6% compared to 3.2%.  The table breaks down the contribution of earnings by industry to total personal income.  Once again, the role of farm earnings in boosting total personal income is apparent.   Among other sectors, Arkansas personal income was boosted by growth in Manufacturing; Professional, scientific, and technical services; and Health care and social assistance.  Nondurable goods manufacturing, in particular, contributed more to Arkansas income growth it did to U.S. growth.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Data Revisions:
Today’s data release included a comprehensive update of state personal income, incorporating more detailed and complete source data, updated seasonal factors, and the results of the July 2018 comprehensive update of the National Income and Product Accounts.  The figures below illustrate the nature of the revisions for Arkansas total personal income.  In terms of levels, the revised data show slightly lower incomes in early 2016, but the revisions are cumulatively all positive since then.  The revisions result in higher growth estimates for Arkansas:  Over the four quarters ended 2018:Q1, previously published data had reported a growth rate of 2.0%, and the data revisions increased that estimate to 3.5%.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Arkansas Personal Income – 2008:Q1

By , June 22, 2018 3:25 PM

The latest data on Arkansas personal income indicated a disappointingly slow growth rate in the first quarter of the year.  Total personal income increased at an annual rate of only 2.5% from 2017:Q1 to 2018:Q2, compared to the national average rate of 4.3%.*  Only one state registered a lower growth rate (Idaho at 2.0%).

Personal income growth was lower than the U.S. average in nearly every major component.  Farm income was particularly weak, declining at a 35.5% rate relative to the fourth quarter.  Farm income is a fairly small component of total personal income, however, and can be highly variable from quarter to quarter.  All components of Earnings by Place of Work increased at lower rates than the national figures, with Proprietors’ income declining at a 5.5% rate in Arkansas while increasing at a rate of nearly 5% nationally.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

The only major component for which Arkansas outpaced the nation was Dividends, interest and rent (DIR).  Although the data represent only one calendar quarter, the 2018:Q2 growth rates contribute to an ongoing trend of divergence between DIR, on the one hand, and Wages & salaries (WS) on the other.  As illustrated in the figure below, since the beginning of 2010 the DIR component of personal income has grown far more rapidly than total personal income — and has grown more rapidly in Arkansas than in the rest of the nation.  From 2010:Q1 through 2018:Q1 the growth rates for Arkansas and the U.S. were 7.5% and 5.7%, respectively.  In contrast, WS growth over the same period has averaged only 3.2% in Arkansas while growing a a rate of 4.1% nationally.  So not only is DIR growth far exceeding WS growth, but the gap is wider in Arkansas than elsewhere across the nation.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

The upshot of this pattern of growth is that wage and salary growth has only accounted for 37.7% of total personal income growth in Arkansas since 2010, while it has accounted for over half of total income growth nationwide.  In contrast, the DIR component accounts for about one-quarter of total personal income growth nationwide, but accounts for over 35% of Arkansas’ income growth.  So although the growth rate of total personal income in Arkansas has closely tracked the national average for the past eight years (at just over 4.0% annually), a far greater share of the income gains has gone to owners of capital, rather than to wage earners.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis, Author’s calculations

In recent quarters, the disparity between DIR and WS growth appeared to be dissipating. The strength of DIR in the first quarter might be just a blip in the data, or it may indicate a resurgence of rapid growth in that income component going forward.  We’ll continue to monitor the growth rates of these income components as more information becomes available.

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*In the news release that came out yesterday, the BEA initiated a practice of expressing quarterly personal income growth in terms of annualized percentage changes (as is done for GDP and other economic aggregates).  We will henceforth follow that convention here as well.

Arkansas Personal Income, 2017:Q4

By , March 22, 2018 3:07 PM

Total personal income in Arkansas increased by 1.1% in the fourth quarter of 2017, matching the pace of the national aggregate.  For the year, Arkansas income was up 3.2% in 2017 compared to 2016.  Arkansas annual income growth slightly exceeded the national average and ranked the 16th highest among the 50 states.

PI 2017 map

Overall, personal income growth in Arkansas continues to match the pace of the national total.  Since the previous cyclical peak (in 2008:Q2), total income has increased by 30.6% in Arkansas and by 30.9% nationwide.  Since the trough of the last recession (2010:Q1), the annual growth rates of income in Arkansas and the U.S. have both been 4.1%.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

The breakdown by major components of income in the fourth quarter shows slightly slower wage and salary growth in Arkansas than in the rest of the nation, while proprietors’ income and dividends, interest, & rent grew at slightly higher rates.  In the annual averages, Arkansas growth exceeded the nation’s primarily due to farm income (which also shows through to a higher growth rate of total proprietors’ income).

Source:  Bureau of Economic Analysis

Source: Bureau of Economic Analysis

The breakdown of earnings growth by industry shows a sectoral growth pattern similar to that of the nation as a whole (with the exception of strong farm income in Arkansas).  Earning from mining fell faster in Arkansas, while the growth rates of earnings in manufacturing (both durable and nondurable goods) was higher.  Earnings in the information sector were down in Arkansas and the growth rate of transportation and warehousing earnings (an important component of Arkansas personal income) was well below the national average.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Arkansas Personal Income – 2017:Q3

By , December 20, 2017 11:03 AM

The Bureau of Economic Analysis reported this morning that personal income in Arkansas increased 0.5% in the third quarter of 2017, a bit below the national average of 0.7%.  A drop in the volatile Farm Income component slowed growth both nationally and here in Arkansas, but accounted for a larger reduction in total growth for Arkansas (because it accounts for a larger share of income).  This morning’s report also showed a downward revision to second quarter growth in Arkansas:  Originally reported at 0.6%, the revised data show a growth rate of 0.4%.  The downward revision was more than accounted for by a lower estimate of Wage and Salary growth, which was marked down from 1.2% to 0.5%.  Over the past four quarters, Arkansas personal income is up 3.3%, compared to 2.6% nationally.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Earnings by place of work rose 0.6% in Arkansas in the third quarter.  Wage and Salary growth was particularly strong at 1.0%.  Proprietors’ income was down due to the farm component.  Nonfarm proprietors’ income was up 0.8%.   From 2016:Q3 through 2017:Q3, Arkansas earnings growth has outpaced the nation — 3.8% versus 2.6% — with all components growing faster than the national average.  Growth in Personal Current Transfer Receipts has been somewhat slower in Arkansas than the U.S. average.

Source:  Bureau of Economic Analysis

Source: Bureau of Economic Analysis

The table below breaks down Earnings growth by industry sector.  The fastest-growing sector was Educational Services, while the largest contribution to total personal income growth came from Health Care and Social Assistance.  Earnings from Construction and Wholesale Trade also increased sharply.

Source:  Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Arkansas Personal Income – 2017:Q2

By , October 3, 2017 5:13 PM

Last week’s news release on personal income included new statistics for the second quarter of 2017, along with data revisions for the period 2014-present.

The latest update showed personal income increasing 0.6% in the second quarter, slightly below the national growth rate of 0.7%.  Data from the first quarter were revised to show an increase of 2.0% for Arkansas, up from the 1.0% rate previously reported.  For the four quarters from 2016:Q2 to 2017:Q2, Arkansas’ growth rate was 3.0%.  For the same period, the nation’s income growth rate was 2.9%.  After adjusting for an inflation rate of 1.6% (as measured by the price index for personal consumption expenditures), the real year-over-year growth rates of personal income for Arkansas and the U.S. were 1.4% and 1.3%, respectively.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

The breakdown of personal income growth in the second quarter reveals that nonfarm income rose 0.9%, while the more volatile farm income component decreased by 15.2%.  Among the major sources of income, both Dividends, Interest, and Rent and Wage and Salary Disbursements increased 1.2%.  On a year-over-year basis, Arkansas’ 3.0% growth rate reflected a surge in Proprietors’ Income (+7.8%).  Arkansas’ growth rate also outpaced the nation in Earnings by place of work (3.3% compared to 2.9% nationwide).

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Overall, the annual revisions to the personal income data for 2014-16 raised estimates of Arkansas incomes.  The revisions had the effect of raising total personal income by 1.0% in 2014, by 2.0% in 2015 and by 1.0% in 2016.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

The bulk of the revisions were attributable to Dividends, Interest and Rent.  Cumulatively, that component was revised upward by 10.7%. Personal Current Transfer Receipts were revised upward for 2016 (by 1.0%), but for all other categories of income (including Wage and Salary Disbursements), the cumulative effect of revisions was negative.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

We had previously noted that while personal income growth in Arkansas has roughly kept pace with the national average in recent years, its growth has been skewed in favor of the Dividends, Interest and Rent component while Wage and Salary income has grown more slowly than the national average.  The new data revisions exacerbate that differential.  As shown in the table below, Wage and Salary income has accounted for just over one-half of national personal income growth over the course of the economic expansion.  Here in Arkansas, however, Wages and Salaries account for less than 40% of total income growth.   In contrast, Dividends, Interest and Rent accounts for over one-third of Arkansas income growth and only 26% at the national level.  The other component that has been contributing a relatively large share to Arkansas income growth is Personal Current Transfer Receipts.  The growth rates of transfer payments have been roughly the same for Arkansas and the U.S., but that component represents a larger share of total income for Arkansas.

Source: Bureau of Economic Analysis and author's calculations

Source: Bureau of Economic Analysis and author’s calculations

Arkansas per capita personal income in the second quarter was $40,893, representing 81.3% of the national average per capita income of $50,308.  As a percent of the national average, the recent data revisions improved Arkansas standing:  Before the revisions, per capita income stood at 79.4% of the national average (in the first quarter).  It was the cumulative effect of data revisions for 2014-16 that raised estimates for Arkansas back above the 80% line.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Arkansas Personal Income – 2017:Q1

By , June 27, 2017 3:55 PM

Arkansas personal income increased by 1.0% in the first quarter of 2017, the same pace as the national average.  The range of growth rates among states ranged from -0.1% in Nebraska (the only state with negative growth) to +1.6% in Idaho.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

From the first quarter of 2016 to the first quarter of 2017, personal income in Arkansas increased 3.1%, compared to a 3.7% growth rate nationwide.  From the recession trough-date of 2010:Q1, income growth has averaged 4.0% in Arkansas and 4.2% for the U.S.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

As shown in the table below, Arkansas farm income rose sharply in the first quarter.  The news release from the Bureau of Economic Analysis indicated that farm earnings was a leading contributor to growth in Idaho, the fastest growing state in the first quarter, but was also a leading contributor to slow growth in other states.  The divergence in the contribution of farm income to growth reflected different types of farm output among states.  Proprietors’ income also increased sharply in Arkansas in the first quarter, although the growth rate of that category has been slightly lower than the national average over the past four quarters.  Although personal current transfer receipts expanded at a rate of only 1.0%, compared to 1.5% nationwide, that category represents the only major component of personal income to outpace the U.S. average over the most recent four quarters.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Earnings by place of work, which comprises about two-thirds of personal income, increased 1.23% in Arkansas in the first quarter, slightly outpacing the U.S. growth rate of 1.07%.  For the most part, sectors seeing a decline in income in Arkansas were also slow-growth sectors nationally–these included forestry and fishing, transportation and warehousing, information, and management of companies and enterprises.  In addition to farm income, the fastest growing industry groups included mining, construction, real estate, educational services, and administrative and waste management services.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Regional Price Parities and Real Personal Income – 2015

By , June 23, 2017 10:07 AM

Arkansas is a relatively low income state, but it is also a state with a very low cost of living.  A dollar of income supports more real spending in Arkansas than it would in other, more expensive parts of the country.  New data from the Bureau of Economic Analysis documents the low cost of living in Arkansas using measures known as Regional Price Parities (RPPs).

RPPs measure the average price of goods and services in a geographic region compared to other regions in the U.S.  The figure below displays these measures for the 50 states and the District of Columbia, as of 2015.  The most expensive state in the nation is Hawaii, with prices that are 18.8% above the national average.  At the other extreme, the cost of living is only 86.2% of the national average in Mississippi, almost 14% below average.  Arkansas comes in at #3 on the list of states with the lowest cost of living, with a RPP of 87.4.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

While the cost of living is lower in all areas of the state, there are differences among the RPPs for regions within Arkansas.  As shown in the following table, the cost of living is highest in the Northwest and Central Arkansas metropolitan areas.  Nonmetropolitan areas of the state have a RPP of 83.9, implying a cost of living that is 16% below the U.S. average.  Among metro areas, Jonesboro is the least-expensive place to live.  In fact, Jonesboro’s RPP ranks it with the 7th lowest cost of living among all 382 of the nation’s metropolitan statistical areas.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

The table also shows that differences in rents–or housing costs more generally–drive the overall differences in cost of living.  Goods prices tend to vary relatively little in different parts of the country.  The cost of services, which have a significant locally-produced content, vary more substantially.  Rents, on the other hand, are entirely local prices and therefore display the largest region-specific component.

Real Income and Local Inflation
By adjusting incomes in states and regions for differences in cost of living, RPPs can be used to calculate measures of purchasing power that provide real (price-adjusted) measures of income.  Typically the term “real income” is used to describe measures that are adjusted for inflation, or price differences over time.  In the context of RPPs, the adjustment covers differences over both time and space.

In the latest data, for instance, the RPP for Arkansas rose from 87.1 in 2014 to 87.4 in 2015.  Because the RPP for the entire U.S. is 100, by definition, this means that prices in Arkansas rose by 0.3 percentage points more than for the nation as a whole.  U.S. inflation was 0.3% in 2015 (as measured by the implicit price deflator for personal consumption expenditures) so Arkansas’ inflation rate was about double the national average for that year.  Actually after rounding to the nearest one-tenth of a percentage point, the inflation rate implied by Arkansas regional price deflator was 0.7%.  Other states’ regional price adjustments indicated inflation rates ranging from 1.2% in North Dakota to -0.7% in Delaware.

The figure below illustrates the varying path of price-level changes in Arkansas compared to the national average.  The U.S. the data are annual percent changes in the implicit price deflator for personal consumption expenditures.  For Arkansas, the data represent implicit price deflators based on the annual RPP statistics.  The two measures of “inflation” track fairly closely over time.  Over the five-year period, cumulative compounded price changes totaled 9.5% for the U.S. and 10.6% for Arkansas, implying that the cost of living in Arkansas was rising slightly toward the national average, on net.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

The following table shows the growth rates of total personal income and real personal income in Arkansas, adjusted for differences in inflation and regional prices.  The table decomposes total income growth from 2014-15 into real and inflation components (the percent growth columns).  For Arkansas statewide, nominal (dollar) income rose 2.2%, with 1.4% attributable to real income growth and 0.7% to overall price increases (with the remainder due to rounding error).  The highest real income growth rate in the state was in the Fayetteville metro area, with 3.7% nominal income growth and 0% inflation.  Nominal income in Pine bluff increased only 0.1% in 2015 but prices declined by 0.5%, resulting in an increase in real income of 0.6%.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Real Per Capita Income
One commonly used measure of local economic well-being is per-capita personal income.  In dollar terms, per capita income in Arkansas was $38,257 in 2015, which amounted to just under 80% of the national average.  When we take into account the higher purchasing power of incomes in Arkansas, real per capita income is over 91% of the national average.  The table below shows how the adjustment for purchasing power changes the relative standards of living implied by per capita incomes in Arkansas’ metro areas.  The accompanying figure illustrates the differences among areas.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

The highest per capita income in the state is in the Northwest Arkansas metro area.  In dollar terms, per capita income is 9% above the national average. After taking account of the fact that the cost of living is over 10% below the national average, per capita income in the Fayetteville metro area is 22% above the national average–in terms of purchasing power and standards of living.  The very low cost of living in Jonesboro has a particularly large impact on this real income comparison.  In dollar terms, per capita income in Jonesboro is only 70% of the U.S. average, but after adjusting for prices it amounts to 86%.

Arkansas Personal Income – 2016:Q4

By , March 28, 2017 4:46 PM

Arkansas personal income increased by 0.8% in the fourth quarter of 2016, a slightly slower pace than the nationwide growth rate of 0.9%.  From the fourth quarter of 2015 through the end of 2016, income growth in Arkansas was 3.2%, compared to 3.7% nationwide.  Since the beginning of 2010, incomes in Arkansas have been rising at a 4.1% annual rate, slightly below the 4.3% U.S. pace.

Source: Bureau of Labor Statistics

Source: Bureau of Labor Statistics

Annual Data
The personal income report from the Bureau of Economic Analysis featured data based on 2016 annual averages.  From 2015 to 2016, personal income in Arkansas grew at a 3.2% rate — a growth rate that ranked 27th among the 50 states.  Across the country, growth rates ranged from -1.7% in Wyoming to 5.9% in Nevada.

PI-2016Q4-map

Total earnings by place of work expanded at nearly identical rates in Arkansas and the U.S. in 2016 — 4.05% and 4.06%, respectively.  The table below reports a breakdown of earnings by industry.  For both Arkansas and the nation, the sector contributing the most to earnings growth was Health care and social assistance.  Several other service sectors showed relatively strong growth as well.  The weakest sector for earnings growth was Mining — reflecting the ongoing slump in fossil fuel prices and extraction activity.  A surprisingly strong sector was Construction, which grew at a 7.3% nationwide and 5.2% in Arkansas.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

Per Capita Income
With a population growth rate of 0.3 from 2015:Q5 to 2016:Q4, personal income per capita in Arkansas grew at a 2.9% rate.  U.S. population growth over the same period was 0.7%, resulting in a per capita income growth rate of 3.0%.  In the fourth quarter of 2016, U.S. per capita income stood at $50,207, while Arkansas’ was $39,725.  As a percent of the U.S., Arkansas’ per capita income ended the year at 79.1%, down slightly on net from a year earlier.

Source: Bureau of Economic Analysis

Source: Bureau of Economic Analysis

 

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