Maine Personal Income Rises in 2006

April 15, 2007

From the April Labor Market Digest

Total Personal Income Total personal income in Maine increased 5.3 percent between 2005 and 2006 to $42.8 billion. This compares to a national growth rate of 6.3 percent and a New England gain of 5.3 percent. Personal income is the sum of income received from earnings from work; dividends, interest, and rent; and transfer payments. Compared to the nation, slower income growth in Maine was primarily due to slower growth in earnings from work and dividends, interest, and rent.

Earnings from work, which are the largest source of personal income, increased 4.6 percent in Maine between 2005 and 2006. All major nonfarm industries, with the exception of utilities, registered total earnings increases. The fastest rate of growth was recorded by construction at 8.0 percent. Management of companies and enterprises workers were second with an increase in earnings of 7.7 percent, followed by professional and technical services (7.6 percent).

Per Capita Personal Income Per capita personal income equals total personal income divided by the total population. Per capita personal income in Maine rose 5.0 percent between 2005 and 2006 to $32,348. This was the 25th highest rate of increase among the 50 states, and was slightly below the national growth rate of 5.2 percent.

The Maine 2006 per capita personal income ranked 34th of all states compared to 37th in 2005. Maine per capita personal income stood at 89 percent of the national average in 2006. Per capita personal income in the other New England states ranged from 95 percent of the national average in Vermont to 137 percent in Connecticut.