The big economic news last week wasn’t our office’s forecast, but the big jump in median household incomes nationwide… In fact, per the CPS data, the largest percentage increases in incomes were seen at the lower end of the income spectrum. This coincided with a relatively large decline in the poverty rate as well, as would be expected. Overall certainly good news and a welcome reprieve from lackluster to declining incomes in recent years. What is driving the results?
According to Josh Lehner (and Jed Kolko writing for Calculated Risk), a combination of rising earnings and rising employment have contributed to increases in median household income. Read more here to find out more, and visit the Office of Economic Analysis here.