Thursday, March 29, 2012

Colorado 15th for per capita income during 2011

Colorado was 15th in the nation for per capita personal income during 2011. According to a new report released yesterday by the Bureau of Labor Statistics,the per capita income in Colorado during 2011 was $44,088, which places it 15th behind Connecticut, the state with the highest per capital personal income of $56,889. However, the non-state of the District of Columbia posted a per capita personal income of $73,105. Nationally, the per capita income was $41,663.

Growth in total personal income was also relatively high in Colorado. Colorado reported a growth rate of 5.7 percent from 2010 to 2011, which placed it 8th in the nation. The state with the highest growth in personal income from 2010 to 2011 was North Dakota at 8.1 percent. Nationwide, the growth rate for total personal income was 5.1 percent.

According to the BLS press release:

State personal income rose an average 5.1 percent in 2011 after rising 3.7 percent in 2010, according to estimates released today by the U.S. Bureau of Economic Analysis. State personal income growth ranged from 3.4 percent in Maine to 8.1 percent in North Dakota. Inflation, as measured by the national price index for personal consumption expenditures, increased to 2.5 percent in 2011 from 1.8 percent in 2010.

Colorado's growth rate places it in the top quintile for personal income growth as measured by the BLS.

The first map shows historical per capita income rates for Colorado, not adjusted for inflation. Per capita personal income in Colorado during 2011 was still 0.2 percent below the 2008 peak of $44,180. Per capital personal income fell considerably from 2008 to 2009 in response to the 2008-2009 recession.

The second graph shows the growth rate in total personal income in Colorado. Personal income growth over the past decade has never matched the consistent growth that occurred during the 1990s before the dot-com bust. Personal income declined from 2008 to 2009.

This report reinforces the view that Colorado is performing better than many states in a variety of economic indicators. Recent data shows that home prices have stabilized while foreclosure rates and delinquency rates continue to be far lower in Colorado than in the majority of other states. Colorado's relatively high placement for per capita income would help to explain some of this.