One reason New Hampshire employers may not have been able to find enough workers over the summer is that they weren’t offering enough money.
At least that could be one interpretation of a report released last month by the Pew Charitable Trust, which showed personal income growth rate in the Granite State as one of the lowest in the United States since the pandemic began.
Nationwide, personal income rose 4.08 percent in the second quarter of 2021 compared to 2019. Personal income rose in New Hampshire too, but by 1.59 percent, the fourth-lowest growth rate in the union. Wyoming and Alaska had the lowest, followed by Connecticut, which just inched out New Hampshire by 3/100th of a percent. In Vermont, personal income went up 2.33 percent, Maine 3.72 percent and Massachusetts 4.04 percent.
“Although Americans’ earnings, which account for the bulk of personal income, ticked up in most states as the economy recovered, higher levels of government assistance payments actually drove much of states’ gains,” said the report.
That
relief included the extra unemployment insurance, but also increases in
Social Security, Medicare and Medicaid and other safety net programs.
The
amount of some government payments went down compared to the spring of
2020, when the pandemic first started, so the nation had negative growth
of 2.84 percent in the last year. But in New Hampshire, personal income
shrank by 5.22 percent.
Most
personal income comes through earnings — mostly wages — but that has
risen in the U.S. only slightly since the pandemic’s start, at least as
of the second quarter. But it declined in New Hampshire by 0.7 percent,
while in the U.S., earnings rose 1.8 percent. But New Hampshire
residents also got less than their share of pandemic assistance.
Government transfer income went up 20 percent nationwide, but by 16
percent in New Hampshire. — BOB SANDERS