Virginia ranked 46th in personal income growth
- March 25, 2014
Virginia ranked 46th in the nation in personal income growth last year, according to figures released Tuesday by the U.S. Bureau of Economic Analysis (BEA).
The commonwealth, however, continues to rank among the top states for per-capita personal income.
The BEA defines personal income as the income received by all persons from all sources.
Virginia’s personal income rose only 1.7 percent last year, from $396 billion in 2012 to $402.9 billion in 2013.
The Old Dominion’s growth rate was only two tenths of a percentage point higher than the 1.5 percent rate posted by West Virginia, the lowest in the country.
By contrast, personal income grew 7.6 percent last year in North Dakota, a state undergoing an energy boom.
Overall, average state personal income growth was 2.6 percent in 2013, down from 4.2 percent in 2012.
Every state experienced slower personal income growth in 2013 than in 2012.
Inflation, as measured by the national price index for personal consumption expenditures, slowed to 1.1 percent in 2013 from 1.8 percent in 2012.
BEA attributed the slower personal income growth nationally to many factors, including the expiration at the beginning of 2013 of the “payroll tax holiday” (a temporary two-percentage point reduction in the personal contribution rate for Social Security).
The personal income growth rates in other neighboring states were: Kentucky, 2 percent, 40th in the nation; Maryland, 1.6 percent, 49th; North Carolina, 2.4 percent, 25th; and Tennessee, 2.1 percent, 38th.
The District of Columbia, which was unranked, had a growth rate of 1.9 percent.
While its personal income growth rate has been weak, Virginia continues to rank among the top states in per-capita personal income.
The commonwealth ranked 10th in 2013 with per-capita income of $48,773.
Connecticut continues to lead the country in this category with per-capita income of $60,847. Mississippi is last with per-capita income of $34,478.
In neighboring states, Maryland ranked fifth; Tennesse, 34th; North Carolina, 39th; Kentucky, 45th; and West Virginia, 47th.