Thursday, October 15, 2020

Personal income in Georgia rises 28% due to unemployment insurance and economic impact payments

Source: Bureau of Economic Analysis 

Personal income for Georgia’s residents rose sharply in the 2nd quarter of 2020 thanks to large payouts by the state unemployment fund and economic impact payments funded by the federal government. 

Wages declined by $16.8 billion over the three-month period.

Over the quarter, personal income increased by 28.5% at an annual rate in the 2nd quarter of 2020, below the national average, which rose by 34.2%.

Total personal income in Georgia equaled $558.88 billion in the 2nd quarter compared to $524.91 billion in the 1st quarter of the year and $510.46 billion in the 2nd quarter of 2019.  

While nonfarm income rose by $35.8 billion, farm income declined by $1.8 billion over the quarter.

The state’s personal income per capita rose to $52,184.

Changes in personal income components

Overall, personal income in Georgia rose by $33.9 billion in the 2nd quarter.

Net earnings of workers by place of residence dropped by $20.7 billion, and income from dividends, interest, and rent receipts declined by $2.1 billion.

These losses were offset by $56.8 billion increases in transfer receipts. The largest contributors to the rise in transfer receipts were economic impact payments financed by the federal government ($34 billion) and state unemployment insurance benefits ($14.7 billion).

Transfer payments include Social Security, Medicare, Medicaid, state unemployment insurance, as well as boosts due to benefits provided by the CARES Act, expansion of eligibility of workers, not previously covered by state unemployment insurance, economic impact payments to individuals, and provider relief funds for nonprofit institutions, such as hospitals and health care providers.

More detailed information is available here.