PROVIDENCE – Rhode Island was the only state in the nation that did not log an increase in inflation-adjusted personal income year over year in the fourth quarter of 2018, according to The Pew Charitable Trusts Monday.
The report noted that Rhode Island’s performance was partially affected by losses in the finance and insurance industry. The report also said that personal income grew in every state in each quarter of 2018, except Rhode Island, which recorded slight declines in the second half of the year.
United States personal income increased at a 2.3% in that time.
New Hampshire had the highest personal income increase year over year at the end of the fourth quarter of 2018 in New England, increasing 2.1%. Massachusetts had the second-highest growth rate in the region at 2%, followed by Connecticut (1.9%), Maine (1.8%), Vermont (1.4%) and Rhode Island (no change).
North Dakota and South Dakota ranked No. 1 in the nation with a 4.4% personal income increase year over year.
Personal income includes 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. Personal income does not include capital gains.
The report also measured the change in personal income per year in inflation-adjusted dollars from the fourth quarter of 2007 to the fourth quarter of 2018. Rhode Island also ranked low for growth in this time span, with personal income increasing 1%, third lowest in the country and second lowest in New England, ahead only of Connecticut’s 0.9% growth.
U.S. personal income increased 1.9% in the time frame from the Great Recession to the fourth quarter of 2018. North Dakota ranked No. 1 in the long-term personal income analysis, increasing 3.3% from the end of 2007 to the end of 2018.
New England personal income growth from the fourth quarter 2007 to the fourth quarter of 2018:
- Massachusetts: 2%
- New Hampshire: 1.6%
- Vermont: 1.4%
- Maine: 1.3%
- Rhode Island 1%
- Connecticut: 0.9%
Chris Bergenheim is the PBN web editor. He can be reached at Bergenheim@PBN.com.