There was a 21.8% drop in the state personal income in the 2nd quarter of 2021, compared to the 1st quarter, according to the U.S. Bureau of Economic Analysis.
Alt: Personal income percent rate change at an annual rate, Q1-Q2, 2021
- The current decline follows the 56.9% increase in the previous quarter. Such an ebb is caused mostly by the decreasing transfer receipts in each of the 50 states, as well as the District of Columbia that showed the least significant shrinkage of -10.1%. With -34.0% change, West Virginia was leading in the total reduction.
- The total drop in transfer receipts for the nation reached $1.7 trillion in Q2, with the entire decrease in personal income hitting $1.3 trillion.
- Transfer receipts figures were insured by the smaller direct economic impact payments provided by the Coronavirus Response and Relief Supplemental Appropriations Act, as well as the American Rescue Plan Act.
- Another reason is the decrease in the decrease in state unemployment insurance compensation. Again, the District of Columbia showed the smallest change of -$2.5 billion, while the most significant drop of -$185.6 billion in transfer receipts was observed in California.
Earnings increased by 10.7% in 21 out of the 24 industries in the 2nd quarter of 2021 after rising 2.6% in the 1st quarter. The increase confirmed the continued economic recovery from the COVID-19 pandemic effects.
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Source: Bureau of Economic Analytics