Sunday, December 16th, 2018

NE Indiana per capita personal income growing

Posted: Friday, November 16, 2018

Source: Northeast Indiana Regional Partnership

Per capita personal income (PCPI) in the Northeast Indiana’s 11 counties is growing faster than in recent years, but the growth still lags slightly behind the nation and state.

The U.S. Bureau of Economic Analysis (BEA) released 2017 PCPI numbers. Northeast Indiana grew at 3.33 percent compared to the nation’s rate of 3.63 percent from 2016 to 2017.

Increasing PCPI annually against the national average is one of the Northeast Indiana Regional Partnership’s three major goals to grow the regional economy and compete in the global marketplace.

More than $33.2 billion of total personal income circulated in the region’s 11 counties in 2017. That was an increase of $1.2 billion of total personal income compared to 2016, resulting in a $1,371 increase in per capita personal income.

“Because the Regional Partnership uses a relational measure – regional PCPI against national PCPI – local income has to exceed the rate of growth of our national counterparts for Northeast Indiana to get ahead on this metric. That’s a tall task, but it’s not impossible,” said Rachel Blakeman, Purdue University Fort Wayne Community Research Institute director. “CRI’s position is that raising wages is the most available mechanism to raise PCPI in Northeast Indiana. Therefore, strategies that create jobs with above-average wages or increase the pay of existing workers are necessary to move this measure up.”

Regional economic developers in Northeast Indiana use PCPI as an economic indicator because it represents a historical regional data trendline that can accurately tell the comprehensive story of personal income growth over the decades. Per capita personal income is more than just wages; it also considers investment, entitlements like social security and other additional income.

“The data clearly tells us that we are making great strides to increase prosperity in Northeast Indiana. We have strong competition in communities all across the country. We must do more as a region to attract and retain high-wage and high-growth jobs in our key industries,” said John Sampson, president and CEO of the Northeast Indiana Regional Partnership. “We must continue to invest strongly, boldly and consistently in collaborative efforts to increase per capita personal income. Our goals are clear, and our work is not done.”

Sampson said consumer spending drives the economy, and more money in the pockets of residents allows people to spend more money locally for goods and services.

Per capita personal income is calculated as the total personal income of the residents of a geographic area divided by the total number of residents. The data is released annually by the BEA, and was calculated for the region by the Purdue University Fort Wayne Community Research Institute. The initial release is subject to BEA revision annually.