Despite Strong Economy, Income and Earnings Flat

PRESS RELEASE:    
27 August, 2008    

Puget Sound – Annual data released yesterday by the Census Bureau on poverty and earnings reveals lackluster growth in income and earnings, despite a strong regional economy (the combined King, Snohomish and Pierce County area) in 2007.  

Overall, median earnings for men stayed flat while for women fell 1.8%.  Earnings in some industries grew sharply while in others dropped - male workers in the Finance sector earned 9% more in 2007 than 2006 while male workers in the Leisure and Hospitality sector earned 9% less.  In line with earnings, median household income in 2007 ($63,895) did not change after adjusting for inflation for 2006 income ($63,017).

Poverty remained flat from 2006 to 2007, despite low unemployment.  Over two-thirds (69%) of all families in poverty had a least one worker.  

Dramatic disparities between groups show that benefits from the region’s economic recovery vary greatly across groups.  Households in the bottom fifth of income brought in only 4% of the region’s income while households in the top fifth made 48%.  One quarter of black persons or African Americans had income less than the Federal poverty threshold compared to 7% of white persons.  Of the region’s largest cities, Everett had the highest poverty rate at 16.8% and Bellevue had the lowest at 6.7%.

“Although the regional economy appears to be doing better than the rest of the country, the squeeze of inflation was already beginning to hurt family income in 2007,” said Howard Greenwich, Research Director for Puget Sound Sage. “An economic slowdown combined with soaring costs will be particularly painful for workers and families at the bottom of the economic ladder.”

James Hale has worked as a prep cook for 13 Coins restaurant in SeaTac for 5 years. His wages have remained at $10 per hour for two years. "My rent just went up $150 last month. Food is also really expensive.  It's hard for our family, especially when I'm the only earner in the house."

The brief can be downloaded here: Earnings, Poverty & Income Inequality in the Puget Sound Region