Household income trends during the recession and economic recovery.
Sentier Research today released a report that introduces a new monthly series that will examine trends in the income (before taxes) of American households. The report showed that there has been no recovery in terms of household income, which has continued to decline up through June 2011. The report examined household income trends during the recent recession lasting from December 2007 to June 2009 as well as two full years of the "economic recovery" beginning in June 2009 up through June 2011.
Other findings included:
• Real median annual household income has fallen significantly more during the economic recovery period from June 2009 to June 2011 than during the recession lasting from December 2007 to June 2009.
• During the recession, real median annual household income fell by 3.2 percent, from $55,309 in December 2007 to $53,518 in June 2009. During the economic recovery, real median annual household income fell by an additional 6.7 percent, from $53,518 in June 2009 to $49,909 in June 2011.
• For the entire period from December 2007 to June 2011, real median annual household income has declined by 9.8 percent. A decline of this magnitude represents a significant reduction in the American standard of living.
• Real median annual household income for family households with a male or female head and no spouse present (many with children in the household) declined by 7.3 percent (from $39,321 to $36,465) compared to a decline for married-couple households of 4.5 percent (from $76,783 to $73,324).
• Real median annual household income for households with a head under 25 years old declined by 9.5 percent (from $32,123 to $29,060) compared to a decline for households with a head 45 to 54 years old of 5.5 percent (from $65,911 to $62,315).
• Real median annual household income for households with a head looking for work or on layoff (unemployed) declined by 18.4 percent (from $41,037 to $33,487) compared to a decline for households with a head working full-time of 5.1 percent (from $72,104 to $68,454).