The Idaho Department of Labor (IDL) reported Friday that personal income in Idaho rose for the second straight quarter. The department believes that the news reflects a turnaround in the economy, which saw six straight months of losses in personal income prior to the previous two quarters.
Wages and earnings across the state rose eight-tenths of a percentage, from $22.5 billion to $22.7 billion on an annualized basis. Personal income rose to $49.7 billion, a 1.3 percent increase from the final quarter of 2009. Business profits around the state also increased, but at a higher rate. IDL reported that businesses saw a 6 percent jump in profits in the first three months of 2010, an increase preceded by a 5 percent climb in profits in the final 3 months of 2009.
The department said that a few sectors of the economy were primarily responsible for the growth. Health care, manufacturing, administrative services, and natural resources all contributed to the boost in income growth, though construction posted its ninth-straight quarterly earnings decline.
New Mexico is the only state in the West that fared better than Idaho in earnings growth. Nationally, Idaho ranked 1oth among the states in income increases.
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Two points to ponder:
1- Average Income may have increased because many people earning minimum wage have lost their jobs, thus removing the lowest numbers in computing ‘average.”
2-Business profits are up 6% after being up 5% in the previous quarter, yet unemployment remains high disproving the GOP mantra that what is good for business is good for Idahoans. Businesses have used the economic downturn to slash payroll and benefits, requiring their employees to do more for less.