The U.S. Department of Commerce, Bureau of Economic Analysis released state level personal income data for 2010 Q2, including revisions to prior estimates. Total Personal Income in Oregon increased slightly in the most recent quarter, and is up 2.3 percent from one year ago. As the table below shows, income increased in almost every category except state unemployment insurance benefits, which are declining due to lower levels of job loss and also the expiration of benefits to those who have exhausted their benefits. Definitions detailing how income is broken down into its different components is available on the BEA’s website.
The graph below shows the level of income by major component for Oregonians from 1999 to 2010 Q2.
Wages and Salary Disbursements, the largest component of Personal Income, have remained essentially flat for the past six quarters (since 2009 Q1). As the graph below illustrates, the effect unemployment benefits have had on personal income is quite substantial. Wages and Salaries peaked in 2008 Q1 and fell 6.4 percent through 2009 Q4, however Wages and Salaries plus Unemployment Benefits only declined 3.3 percent during the same time period.
Oregon’s increase of 0.6 percent in the most recent quarter ranks 49th best out of all states, or 2nd worst. Only Nevada saw a smaller increase at just 0.3 percent. As wages are the largest component of personal income, Oregon’s 0.2 percent increase in wages in the most recent quarter likewise ranks 49th best. On a year-over-year basis, Oregon’s increase of 2.3 percent ranks 24th best, even though Oregon wages have remained unchanged, or 40th best. Other components of Oregon’s personal income, including nonfarm proprietors’ income and supplements to wages and salaries have increased, helping to drive the overall increases seen.
The BEA is scheduled to release 2010 Q3 data on December 17th, 2010, along with any revisions to prior estimates.