Tags: household | income | decline | recession

NY Times: Incomes Fell More After Recession’s End

By    |   Monday, 10 Oct 2011 01:53 PM

Household income has declined more in the two years after the recession ended than it did during the recession itself, the New York Times reported, citing new research.

The study conducted by two former Census Bureau officials calculates that from June 2009, when the recession officially ended, through June 2011, inflation-adjusted median household income fell 6.7 percent to $49,909. During the recession — from December 2007 to June 2009 — household income fell 3.2 percent, the New York Times reported.

This comes in the wake of last month's findings by Bloomberg Businessweek that U.S. poverty rose to a 17-year high in 2010.
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This new research further showed that some groups have been more adversely affected than others in percentage terms.

With regard to race, blacks have seen the largest declines, having their household income slide 9.2 percent to $31,784 compared with a 7.8 percent drop for non-Hispanic whites whose household income as of June was $56,320, and a 6.8 percent drop for Hispanics who earn $39,901.

Men living alone have seen greater declines than lone women. The self-employed have been hit harder than employees. And, those with associate degrees experienced sharper declines than those who failed to finish high school or earned bachelor's degrees.

Bloomberg Businessweek reports that data show that in 2010, a year when corporate profits were soaring and the economy was pulling out of recession, Americans saw their fortunes decline.

The New York Times reports that the post-recession reduction occurred even though the unemployment rate fell slightly, to 9.2 percent in June compared with 9.5 percent two years earlier.

The Times reported that two main forces appear to have held down pay: the number of people outside the labor force — neither working nor looking for work — has risen; and the hourly pay of employed people has failed to keep pace with inflation, as the prices of oil products and many foods have jumped. During the recession itself, by contrast, wage gains outpaced inflation, the Times reported.

“I can’t think of ways the picture could be much worse,” Ron Haskins, a senior fellow at the Brookings Institution in Washington, told Bloomberg Businessweek. “We have had more than a decade of difficult numbers. It’s not about to end.”

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Household income has declined more in the two years after the recession ended than it did during the recession itself, the New York Times reported, citing new research. The study conducted by two former Census Bureau officials calculates that from June 2009, when the...
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Monday, 10 Oct 2011 01:53 PM
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