Spurred by an economy in turmoil and a drop in personal income that led many to take on increased debt consolidation methods, new data released Thursday by the U.S. Bureau of Economic Analysis has found that state personal income took a nosedive and declined by 1.7 percent in across the country in 2009.
Declines in personal income were recorded in 44 states and Washington D.C., with Nevada experiencing the second worst annual decline recorded since 1969 with a drop of 4.8 percent. The notable decline was attributed mainly to the state’s struggling construction and accommodation industries.
Wyoming had the second largest decline in state personal income with a 3.9 percent decline, led primarily by in-state employment issues relating to its mining and construction industries.
Six states managed to see annual gains in their personal income – which the BEA defines as “the sum of net earnings by place of residence, property income, and personal current transfer receipts.” West Virginia saw the most growth with a 2.1 percent improvement over the course of the year.
The BEA also found that per-capita personal income – defined as personal income divided by population – also declined in 2009 with a 2.6 percent drop nationally. The decline differed drastically from the 2.0 percent gain seen in 2008, and was attributable to states such as Wyoming that saw its per-capita income slide the most with a 5.9 percent decline.