Personal Income Falls in 2nd Quarter…

The U.S. Bureau of Economic Analysis reported U.S. personal income decreased nearly 22 percent at an annual rate in the second quarter. This comes on the heels of a 57 percent increase in the first quarter. Nebraska fared better compared to the rest of the nation with personal income only off 17.5 percent, or $5.9 billion. Nebraska personal income in the second quarter was estimated at $119 billion. Nebraska experienced the seventh smallest decline among all states. A decline in government transfers, COVID assistance and unemployment insurance compensation, precipitated the drop in personal income. For Nebraska, government transfer receipts were down $9.7 billion in the second quarter compared with the first quarter of this year. In contrast, total earnings in Nebraska in the second quarter were up $3.8 billion, 22 percent more than earnings in the first quarter. Nebraska was near the top among states in earnings growth.

Figure 2. Personal Income Percentage Change, Q1-Q2—2021