Salaries and other income of Hawaii residents has failed to keep pace with the rest of the nation, according to a report that was released by U.S. Bureau of Economic Analysis. Personal income in Hawaii grew by 0.9 percent in the second quarter from the first quarter, putting the state in the bottom 10 percent nationally, and ranking Hawaii in the bottom 5.
Hawaii’s second-quarter personal income growth was half the first quarter’s 1.8 percent rise, according to the report. Nationally, personal income growth slowed to 1.1 percent in the second quarter from a 2.1 percent gain during the first three months of the year, according to the BEA.
On a dollar basis, Hawaii personal income totaled $59.2 billion at an annual rate in the second quarter. Of the three major income categories, the biggest increase was in dividends, interest and rent, which grew by $225 million, or 2 percent.
Net earnings, which consists of wages and salaries, rose by $187 million, or 0.5 percent. Transfer receipts, which includes federal stimulus funds and other federal payments to states, rose by $120 million, or 1.3 percent.
While numbers look to be up across the board, the fact that Hawaii is not keeping pace with the rest of the nation may lead us to believe that our economy is a bit more sluggish than originally thought.
While unemployment rates in Hawaii are some of the best in the nation, it doesn’t seem to be translating to income growth, as Hawaii remains close to even right now.
National Personal Income Growth Rankings
1. Nebraska 2.2%
2. South Dakota 2.2%
3. North Dakota 2.1%
4. Oklahoma 1.7%
5. Wyoming 1.6%
45. Hawaii 0.9%
46. Michigan 0.9%
47. Delaware 0.9%
48. New York 0.9%
49. Georgia 0.7%
50. Washington 0.7%
Source: Bureau of Economic Analysis