Arizona Leads the Western United States in Income Growth
PHOENIX, AZ – October 6, 2020 – AZ BUSINESS MAGAZINE
Arizona’s median household income rose by 15.2% over the latest three-year recording period, according to new data from the U.S. Census Bureau. That was the highest growth among western and mountain states, and higher than Texas and Florida. The Census data, which compares income growth averaged between 2014-2016 and 2017-2019, indicates that the median household income in Arizona rose by more than $8,600.
In addition, last year, Arizona’s total personal income rose by 5%, the fifth strongest growth in the nation, according to the Bureau of Economic Analysis.
“Arizona is a national leader in attracting more jobs and companies to move here — and it’s bringing real benefits for Arizona families,” said Governor Ducey. “This growth doesn’t happen by accident. It’s a result of welcoming policies and hard work from Arizona entrepreneurs and employees to innovate and expand. We want Arizona to continue to be a state that continuously affords more opportunity for its citizens. We will continue to advocate for policies that keep our state on a path of growth and opportunity for all.”
Median Household Income
In the latest three-year recording period, Arizona’s median household income increased from $56,818 to $65,450, a difference of more than $8,600. In comparison, Utah’s increased by just 11.3% or $7,956; California’s median household income increased by 8.7% or $5,956; Colorado’s increased by 5.7% or $4,048; and New Mexico’s decreased by 0.6% or $314 over the same period.
Arizona is fifth in the nation for the dollar amount increase and fourth for percent increase. Arizona’s dollar increase from 2014-2016 to 2017-2019 is 174% of the U.S. median income increase, and the state’s percentage growth is 185% of the national rate.
Arizona’s personal income grew by more than $16 billion in 2019. Arizona last year saw large earnings growth in the areas of health care and social assistance as well as construction, significantly contributing to the state’s personal income growth of 5%.
The 2019 personal income growth in California, New Mexico and Nevada is 4.7%, 4.2% and 4.1%, respectively.
Arizona’s economy posted strong gains in August, adding nearly 80,000 jobs over the month. The state’s unemployment rate dropped to 5.9%, down from 10.7% in July and lower than the U.S. overall rate of 8.4%.
A recent ranking of state economies by 24/7 Wall Street listed Arizona at sixth in the nation. The same report showed Arizona had the 4th highest 5-year annualized employment growth rate through June 2020.
(Photo by AZ Big Media)