Mahalo for supporting Honolulu Star-Advertiser. Enjoy this free story!
Salaries and other sources of income generated by Hawaii residents failed to keep pace with the nation as a whole in the second quarter, according to a report released Thursday.
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, the U.S. Bureau of Economic Analysis reported.
FOLLOWING THE MONEY
Highest and lowest second-quarter personal income growth rates:
| HIGHEST |
| 1. Nebraska |
2.2% |
| 2. South Dakota |
2.2% |
| 3. North Dakota |
2.1% |
| 4. Oklahoma |
1.7% |
| 5. Wyoming |
1.6% |
| LOWEST |
| 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
|
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.
The personal income data published by the BEA are not adjusted for inflation. The state Department of Business, Economic Development and Tourism estimates that after inflation is taken into account, Hawaii personal income will grow by just 0.8 percent this year. That compares with an estimated increase of 3.8 percent before adjusting for inflation for 2011.
The biggest source of earnings growth in the second quarter was in the health and social assistance sector, which experienced an increase of $83 million, or 2.1 percent, according to the report. Earnings in administrative support rose $56 million, or 3.2 percent. Retail earnings rose by $54 billion, or 2.1 percent, while the construction industry generated an additional $51 million in earnings, an increase of 1.8 percent.
Earnings contracted in several industries, including accommodation and food services, which suffered a decline of $40 million, or 1.1 percent.
On a per capita basis, Hawaii’s personal income was $41,661 in 2010, the 17th highest in the United States, according to the BEA. The state slipped one notch since 2009, when its per capita personal income of $40,681 earned it a 16th-place ranking.
71