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US incomes have risen and poverty has declined for the third consecutive year in 2017, according to census figures released Wednesday that suggest more Americans are benefiting from the strength of the economy.
The new data, which provides a general overview of the US's economic well-being, shows that median household income reached $ 61,372 last year, up 1.8% on inflation. Last year, 39.7 million people were living in poverty and this rate dropped 0.4 percentage points to reach its lowest level since 2006. The number of people working full-time throughout the year is the highest in the world. year increased by 2.4 million in 2017.
Revenues have risen 10.4% in the last three years and last year's figure was the highest ever. But a change in the way numbers are calculated over time makes comparisons flawed, and census officials said that last year's figure was not statistically different from the 1999 and 2007 revenue peaks.
The result is that the typical US household income is stuck where it was before the last two recessions. The 2017 growth rate also lagged the two previous years, when median household income – the mid-point of all households – increased by 3.2% in 2016 and 5.2% in 2015 .
Revenues increased mainly because more people worked more hours and, to a lesser extent, because their wages went up. "We continue to see this shift from part-time work, part-time work to full-time work throughout the year," said Trudi Renwick, Census Bureau economist.
Some economists say they are perplexed about faster wage growth, given the overall strength of the economy and the unemployment rate of around 4%. As wages rise a little faster than before in economic expansion, inflation has also increased, reducing earnings.
"At the unemployment levels we have, if all we see is growth of less than 2% [incomes]it's not what you expect with the kind of data we have today, "said Peter Atwater, president of Financial Insyghts, a Wilmington, Delaware-based economic consulting firm.
A separate set of census figures released Thursday showed that earnings gains were unusually prevalent across the country, with 39 states and the District of Columbia registering operating gains and a single – Oklahoma – posting a slight loss. Median income in 10 states remained virtually unchanged. The main winners were D.C., Maine, Montana, California, Washington and Tennessee.
The median household income also increased in 22 of the 25 largest metros and remained roughly the same in the other three. Gains of 5% were recorded in places ranging from Baton Rouge to La. Akron, Ohio; Tucson, Ariz .; Chattanooga, Tennessee; San Diego, Richmond, Va .; and Scranton-Wilkes Barre, Pa.
Large cities continued their recent trends with the largest increases in revenue, with median household income rising 3.1%. Earnings were lower in their suburbs and smaller cities at 1.6%. Rural households gained 2%.
Republicans are hoping that recent signs of revenue growth will persuade voters to support GOP candidates in the November elections. The Council of Economic Advisers of the White House said Wednesday's numbers were a sign that "the effects of the strong economy are reaching Americans across the United States."
The council said the figures underestimate economic gains because they do not fully cover health insurance, food stamps and housing assistance. Since 2014, the poverty rate has decreased by 2.5 percentage points, from 14.8% to 12.3%.
Democrats say President Trump and Republicans are wrong to claim responsibility for these gains, as significant increases in household incomes and poverty reduction began three years ago. In a speech at the University of Illinois last week, former President Obama said, "When the economy is doing well now, just remember when this recovery started.
In the mid-term campaigns, Democrats point out that earnings gains have not been widely distributed. Income inequality remained virtually unchanged in 2017. Households at the 90th percentile of the income distribution reached $ 179,077, while households at the 10th percentile earned $ 14,219. More than half of the income went to one-fifth of households.
Marian Meszaros, a 62-year-old woman working in a grocery store in Franklin Square, New York, said she received a 93-cent increase last year, earning her $ 15 an hour. But as her cost of living also increases and she helps support her mother, she feels as though she continues to lose ground.
"I've been making more money 20 years ago than now," said Meszaros, who previously worked as a hairdresser. "I would just like to be the middle class again."
The percentage of people without health insurance in 2017 was 8.8%, or 28.5 million, but not statistically different from that of 2016. But the proportion of people lacking coverage increased in 14 states in 2017 – a first since than
Corrections and amplifications
The 2017 growth rate also lagged the two previous years, when median household income increased by 3.2% in 2016 and 5.2% in 2015. An earlier version of this article
Write to Janet Adamy at [email protected]
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