Incomes Are Rising Fast in Michigan
The consumer price index jumped by 0.8% in April — a far larger increase than many had anticipated. The recent spike in the cost of goods and services has led to widespread concerns over inflation. If the cost of living continues to climb at such a rapid pace, it could outpace wage growth, weakening the buying power of the American consumer. Such an outcome would be a reversal of a long-term trend in much of the United States.
Over the last 10 years, real personal income per capita, a measure of annual earnings that is adjusted for inflation, climbed in the United States from $42,287 in 2010 to $53,071 in 2020. There are many potential factors that drove up real personal income, not the least of which is wage growth outpacing inflation.
Michigan is one of only six states where real personal income per capita increased by more than 30% in the last decade. Inflation-adjusted income per capita in the state stands at $50,706, up from $38,867 in 2010.
Longer working days and greater workforce participation likely explain the climbing income. Workers in the state put in an average of 34.2 hours per week, up 1.5% from 2010 — one of the 10 largest increases among states. Additionally, 40.5% of the state’s population worked in 2020, compared to just 39.1% in 2010. The increase is the seventh highest of any state.
Percent growth in real personal income per capita from 2010 to 2020 was calculated using data from the Bureau of Economic Analysis. Personal income figures were adjusted from current dollars to constant 2012 dollars using the U.S. personal consumption expenditure price index and were also adjusted for regional price differences using regional price parity in accordance with the methodology provided by the Bureau of Economic Analysis. These are the 16 states where incomes are rising the fastest.
RankState10-yr. chg. in real personal income per capita (%)Real personal income per capita, 2020 ($)10-yr. workforce participation chg. (ppt.)10-yr. chg. in avg. weekly hours worked (%)1Utah+39.048,052+4.4-3.42California+35.053,097+2.7+2.43Illinois+32.057,412+1.5+0.34Colorado+31.755,369+1.4-2.35Idaho+31.246,567+2.9+1.26Michigan+30.550,706+1.3+1.57New York+29.756,186+1.3-2.18Arkansas+29.148,263+1.1-0.69Oregon+29.049,328+1.1+0.610Washington+28.855,607+0.5+2.311Pennsylvania+27.956,923-0.4+3.012Montana+27.150,465+0.2+0.613Arizona+26.845,103+1.1-0.614Indiana+26.450,772+1.0+0.315Nevada+25.848,896-0.8016Ohio+25.752,849+1.3+2.417Georgia+25.248,554+1.3-0.318Massachusetts+24.763,468-0.4+0.619Iowa+23.754,460-0.6+0.920South Carolina+23.445,795+0.7-2.021Delaware+22.650,743-1.6+0.322Wisconsin+22.253,296+0.4+1.223Minnesota+22.055,774-0.7+3.324New Jersey+21.956,161-0.4+0.925Texas+21.850,434+0.5026Kansas+21.555,204-0.0+0.627Nebraska+21.556,890-0.7-1.528Wyoming+21.460,259-3.6-4.229Tennessee+21.349,539+2.3-0.630New Hampshire+21.055,179-0.5+2.431Kentucky+20.846,530+0.4032Alabama+20.647,598+0.8+0.633Maryland+20.655,980-1.0+0.934West Virginia+20.345,252-0.9+1.135Hawaii+20.343,546-3.6-0.336Florida+20.248,677+0.9-3.737New Mexico+20.244,320-1.1-2.938North Carolina+19.148,197+0.8+1.539Virginia+19.054,691-0.7-3.740Maine+18.948,518-0.5+0.941Rhode Island+18.153,353-0.4-0.942Missouri+18.050,611+0.5-0.943South Dakota+17.657,098-1.8+1.244Mississippi+17.442,878+0.6-3.645Oklahoma+17.349,361-0.7-1.446Louisiana+16.749,840-2.1-1.647Vermont+16.250,497-1.6-1.548North Dakota+16.258,415-2.2+5.549Connecticut+14.867,336-1.3+2.450Alaska+12.154,624-4.6-0.8
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