Per capita personal income grew 3.8 percent over the past 12 months in Minnesota, the best rate of growth in the Upper Midwest and a little above average nationally, according to new data from the Bureau of Economic Analysis.
Average income in Minnesota rose by $1,871 to $50,614 per year from the second quarter of 2014 to the second quarter of 2015, driven mostly by a rise in wages, salaries and other compensation, but also by growth in dividends, interest and rent income.
The new data does not reflect the stock market turmoil of the past two months, during which interest and dividend income would have suffered for most Minnesotans. It also shows overall averages, and doesn't delve into income by race, which shows a discouraging drop for black households in Minnesota in 2014.
But the new data does show that the benefits of economic growth and a tight labor market are flowing to some industries in the form of higher earnings.
Earnings grew the most in finance and insurance, professional and technical services, management, health care, construction and state and local government. Farm, mining and manufacturing income declined slightly, and earnings growth in restaurants and hotels, private education and retail trade was modest.
Minnesota’s year over year income growth was a little better than Michigan, where it rose 3.6 percent. North and South Dakota both saw declines.
Per capita income growth in Minnesota happened despite the fact the state added twice as much population over the same period as any of its neighbors, according to the data. Minnesota added 34,450 in population between the summer of 2014 and the summer of 2015, compared to 13,735 in Wisconsin over that period and 10,132 in Michigan.
Illinois, which is facing a host of internal problems, shed about 12,000 in population over the same period.