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News Release: Local Area Personal Income, 2005

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EMBARGOED FOR RELEASE: 8:30 A.M. ET, Thursday, April 26, 2007
David Lenze (202) 606–9292 BEA–07–17
Kathy Albetski (202) 606–9240
E-mail inquiries: reis.remd@bea.gov

Local Area Personal Income, 2005

Today, the Bureau of Economic Analysis (BEA) released estimates of personal income at the county level for 2005 based on newly available source data. Personal income is a comprehensive measure of the income of all persons from all sources. In addition to wages and salaries it includes employer-provided health insurance, dividends and interest income, social security benefits, and other types of income. /1

The growth in county personal income for 2005 ranged from 34 percent in Cheyenne County, Kansas to -80 percent in St. Bernard Parish, Louisiana. For the Nation, personal income grew 5.2 percent. Farming was the largest contributor to growth in the 10 fastest growing counties-all in Kansas and North Dakota. The five largest declines in county personal income-all in Louisiana-were due to the destruction of housing and businesses from wind, storm surge, and floods caused by Hurricane Katrina.

Per capita personal income (personal income divided by population) ranged from $93,377 in New York County, New York to $5,148 in St. Bernard Parish, Louisiana.

The county estimates released today complete the increasingly detailed series of data releases depicting the geographic distribution of the nation's personal income for 2005. National estimates typically are released one month after the end of the year, state estimates are released two months later, and metropolitan area estimates for 2005 were released last September.

Personal income and its components are available for 3,111 counties from 1969 to 2005. In addition, detailed annual estimates of earnings and employment by industry, personal current transfer receipts, and farm gross income and expenses by major category for each county are available. A partial sample of the data available is presented in the attached table for Los Angeles County, California. These estimates are the only detailed, broadly inclusive, annual measure of economic activity available for local areas. Go to www.bea.gov/regional/reis/ to access these estimates.

A computer-generated narrative describing county, MSA, and state personal income using current estimates, growth rates, and a breakdown of the sources of personal income is available at http://www.bea.gov/regional/bearfacts/.

1. For a comparison of BEA's personal income to other measures of income see the box, Alternative Measures of Household Income," (PDF 69 KB) in the April issue of the Survey of Current Business.

Definitions

Personal income is the income received by all persons from all sources. Personal income is the sum of net earnings by place of residence, rental income of persons, personal dividend income, personal interest income, and personal current transfer receipts. Net earnings is earnings by place of work (the sum of wage and salary disbursements (payrolls), supplements to wages and salaries, and proprietors' income) less contributions for government social insurance, plus an adjustment to convert earnings by place of work to a place-of-residence basis. Personal income is measured before the deduction of personal income taxes and other personal taxes and is reported in current dollars (no adjustment is made for price changes).

The estimate of personal income in the United States is derived as the sum of the county estimates; it differs slightly from the estimate of personal income in the national income and product accounts (NIPAs) because of differences in coverage, in the methodologies used to prepare the estimates, and in the timing of the availability of source data.

Per capita personal income is calculated as the personal income of residents of a given area divided by the resident population of the area. In computing per capita personal income, BEA uses the Census Bureau's annual midyear population estimates.

BEA's major national, regional, international, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA's Web site:www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail alerts of BEA releases and announcements.

Table 1. Personal Income by major source and earnings by industry for Los Angeles County, California, 2003-20051
(Thousands of dollars)
D. Not shown to avoid disclosure of confidential information, but the estimates for this item are included in the total.
1. The estimates of earnings for 2003-2005 are based on the 2002 North American Industry Classification System (NAICS).
2. Census Bureau midyear population estimates. Estimates for 2003-2005 reflect county population estimates available as of March 2007.
3. Contributions for government social insurance are included in earnings by type and industry but they are excluded from personal income.
4. The adjustment for residence is the net inflow of the earnings of interarea commuters. For the United States, it consists of adjustments for border workers: Wage and salary disbursements to U.S. residents commuting to Canada less wage and salary disbursements to Canadian and Mexican residents commuting into the United States.
5. Rental income of persons includes the capital consumption adjustment.
6. Proprietors' income includes the inventory valuation adjustment and capital consumption adjustment.
7. "Other" consists of wage and salary disbursements to U.S. residents employed by international organizations and foreign embassies and consulates in the United States.
Source: U.S. Bureau of Economic Analysis
  200320042005
Income by place of residence    
Personal income 309,827,072 327,362,646 342,231,121
Population (persons) 2/ 9,862,088 9,917,538 9,941,197
Per capita personal income (dollars) 31,416 33,008 34,426
Derivation of personal income   
Earnings by place of work 263,316,886 279,378,339 293,030,796
 less: Contributions for government social insurance 3/ 29,242,218 31,523,587 33,154,295
  Employee and self-employed contributions for government social insurance 14,897,293 15,961,365 16,831,391
  Employer contributions for government social insurance 14,344,925 15,562,222 16,322,904
 plus: Adjustment for residence 4/ -19,918,110 -20,390,827 -20,851,923
 equals: Net earnings by place of residence 214,156,558 227,463,925 239,024,578
 plus: Dividends, interest, and rent 5/ 49,654,416 51,278,516 52,718,921
 plus: Personal current transfer receipts 46,016,098 48,620,205 50,487,622
Earnings by place of work    
Components of earnings    
 Wage and salary disbursements 184,029,912 193,748,711 201,651,773
 Supplements to wages and salaries 41,059,414 44,787,079 47,570,512
  Employer contributions for employee pension and insurance funds 26,714,489 29,224,857 31,247,608
  Employer contributions for government social insurance 14,344,925 15,562,222 16,322,904
 Proprietors' income 6/ 38,227,560 40,842,549 43,808,511
  Farm proprietors' income 127,508 73,082 31,895
  Nonfarm proprietors' income 38,100,052 40,769,467 43,776,616
Earnings by industry    
 Farm earnings 300,915 258,892 230,224
 Nonfarm earnings 263,015,971 279,119,447 292,800,572
  Private earnings 226,362,187 240,999,831 253,254,638
   Forestry, fishing, related activities, and other 7/ 125,053 120,105 134,419
    Forestry and logging 7,576 7,017 7,603
    Fishing, hunting, and trapping 10,614 11,924 13,551
    Agriculture and forestry support activities 84,814 79,060 90,975
    Other 7/ 22,049 22,104 22,290
   Mining 876,337 1,172,533 1,209,836
    Oil and gas extraction 718,542 1,023,527 1,045,092
    Mining (except oil and gas) 54,533 52,313 52,227
    Support activities for mining 103,262 96,693 112,517
   Utilities 1,738,266 1,753,961 1,932,030
   Construction 10,377,294 11,437,311 12,736,280
    Construction of buildings 3,622,402 4,041,225 4,519,645
    Heavy and civil engineering construction 1,335,320 1,361,189 1,469,262
    Specialty trade contractors 5,419,572 6,034,897 6,747,373
   Manufacturing 30,996,596 32,292,573 33,043,837
    Durable goods manufacturing 19,414,219 20,197,397 20,694,722
     Wood product manufacturing 236,806 267,567 266,444
     Nonmetallic mineral product manufacturing 522,770 551,180 519,365
     Primary metal manufacturing 585,853 674,478 719,727
     Fabricated metal product manufacturing 2,487,476 2,536,768 2,664,424
     Machinery manufacturing 1,468,051 1,414,055 1,415,873
     Computer and electronic product manufacturing 5,476,926 5,916,816 6,279,048
     Electrical equipment and appliance manufacturing 670,359 753,830 687,898
     Motor vehicles, bodies and trailers, and parts manufacturing 943,808 (D) (D)
     Other transportation equipment manufacturing 3,898,084 (D) (D)
     Furniture and related product manufacturing 1,189,606 1,343,095 1,289,756
     Miscellaneous manufacturing 1,934,480 1,907,730 2,081,169
    Nondurable goods manufacturing 11,582,377 12,095,176 12,349,115
     Food manufacturing 2,518,556 2,435,077 2,483,472
     Beverage and tobacco product manufacturing 459,818 452,219 493,485
     Textile mills 360,592 391,497 387,567
     Textile product mills 287,999 285,234 285,769
     Apparel manufacturing 2,235,185 2,373,898 2,415,620
     Leather and allied product manufacturing 126,438 130,638 145,979
     Paper manufacturing 781,600 781,486 804,908
     Printing and related support activities 1,497,823 1,578,517 1,614,183
     Petroleum and coal products manufacturing 618,520 699,779 772,780
     Chemical manufacturing 1,793,615 2,013,182 2,048,211
     Plastics and rubber products manufacturing 902,231 953,649 897,141
   Wholesale trade 14,506,104 15,638,920 16,878,960
   Retail trade 16,606,453 17,307,265 17,999,133
    Motor vehicle and parts dealers 3,129,206 3,262,323 3,467,112
    Furniture and home furnishings stores 684,528 713,513 749,839
    Electronics and appliance stores 1,055,982 1,113,691 1,205,936
    Building material and garden supply stores 945,395 1,050,322 1,121,686
    Food and beverage stores 3,065,059 3,116,474 3,215,628
    Health and personal care stores 1,277,110 1,280,405 1,299,982
    Gasoline stations 594,184 609,659 617,659
    Clothing and clothing accessories stores 1,766,622 2,013,436 2,048,021
    Sporting goods, hobby, book and music stores 751,718 782,342 748,738
    General merchandise stores 1,614,129 1,654,692 1,751,207
    Miscellaneous store retailers 1,266,473 1,086,450 1,111,889
    Nonstore retailers 456,047 623,958 661,436
   Transportation and warehousing 9,631,924 10,191,166 10,511,784
    Air transportation 1,749,792 1,730,226 1,528,250
    Rail transportation 278,999 293,817 300,017
    Water transportation 94,728 98,902 105,480
    Truck transportation 2,072,999 2,209,653 2,220,479
    Transit and ground passenger transportation 410,961 416,854 478,017
    Pipeline transportation 142,861 174,245 160,456
    Scenic and sightseeing transportation 45,327 30,617 31,697
    Support activities for transportation 3,092,909 3,352,059 3,731,720
    Couriers and messengers 948,380 1,020,583 1,050,166
    Warehousing and storage 794,968 864,210 905,502
   Information 23,860,514 25,166,724 25,238,549
    Publishing industries, except Internet 1,845,389 1,964,069 2,059,996
    Motion picture and sound recording industries 14,278,221 14,032,619 13,616,413
    Broadcasting, except Internet 4,290,096 5,380,529 5,487,418
    Internet publishing and broadcasting 264,523 237,277 298,881
    Telecommunications 2,178,430 2,377,439 2,402,110
    ISPs, search portals, and data processing 939,530 1,104,333 1,295,468
    Other information services 64,325 70,458 78,263
   Finance and insurance 17,119,244 18,539,420 20,067,353
    Monetary authorities - central bank 63,613 61,912 69,479
    Credit intermediation and related activities 6,041,159 6,265,639 7,027,122
    Securities, commodity contracts, investments 5,345,315 6,174,715 6,754,039
    Insurance carriers and related activities 5,298,231 5,657,354 5,756,145
    Funds, trusts, and other financial vehicles 370,926 379,800 460,568
   Real estate and rental and leasing 8,249,309 8,861,838 9,795,896
    Real estate 6,409,886 7,037,750 8,230,654
    Rental and leasing services 1,574,860 1,609,550 1,385,900
    Lessors of nonfinancial intangible assets 264,563 214,538 179,342
   Professional and technical services 28,337,793 30,865,072 33,458,456
   Management of companies and enterprises 6,083,589 6,516,737 6,740,886
   Administrative and waste services 9,963,904 10,191,902 10,753,594
    Administrative and support services 9,558,917 9,721,700 10,230,036
    Waste management and remediation services 404,987 470,202 523,558
   Educational services 3,866,253 4,120,455 4,381,577
   Health care and social assistance 21,162,680 22,692,459 23,819,154
    Ambulatory health care services 11,225,770 11,969,751 12,743,829
    Hospitals 5,947,278 6,585,805 6,934,421
    Nursing and residential care facilities 2,079,033 2,147,355 2,052,035
    Social assistance 1,910,599 1,989,548 2,088,869
   Arts, entertainment, and recreation 7,938,333 8,404,362 8,266,569
    Performing arts and spectator sports 6,336,401 6,731,659 6,527,748
    Museums, historical sites, zoos, and parks 402,358 428,037 465,934
    Amusement, gambling, and recreation 1,199,574 1,244,666 1,272,887
   Accommodation and food services 6,760,747 7,240,905 7,572,821
    Accommodation 1,286,666 1,406,129 1,457,797
    Food services and drinking places 5,474,081 5,834,776 6,115,024
   Other services, except public administration 8,161,794 8,486,123 8,713,504
    Repair and maintenance 2,266,641 2,332,910 2,466,467
    Personal and laundry services 1,820,518 1,867,901 1,926,013
    Membership associations and organizations 2,576,719 2,692,459 2,706,560
    Private households 1,497,916 1,592,853 1,614,464
  Government and government enterprises 36,653,784 38,119,616 39,545,934
   Federal, civilian 4,407,297 4,741,066 4,827,746
   Military 838,463 898,753 1,007,324
   State and local 31,408,024 32,479,797 33,710,864
    State government 4,364,452 4,551,720 4,624,793
    Local government 27,043,572 27,928,077 29,086,071