Per Capita Income Highest in East; California Growth Slow

Easterners continued to have the highest per capita incomes in 1989, but nine of the 10 states with the fastest growth in per capita income were in the West and the Farm Belt, the government said today.

Alaska ranked first in per capita income growth with a 12.6% gain over the previous year, according to revised estimates by the Commerce Department’s Bureau of Economic Analysis. It also ranked fourth highest among the states in per capita income with $21,656.

The state with the slowest growth was Georgia, 5.1%, with California and Arizona next to last with 5.4% each. In per capita income, California was eighth among the 50 states and the District of Columbia with $19,929.

Per capita income is the annual total personal income of residents, divided by the state’s population. Personal income is income received from all sources, less personal contributions for social insurance.

Following Alaska with the fastest per capita income growth were North Dakota, 9.9%; Hawaii, 9.7%; Montana, 9.4%; South Dakota, 8.6%; Idaho, 8.3%; Iowa, 8.2%; Maine and Nevada, 8% each, and Washington state, 7.8%.

The national average growth rate was 6.6%, and the average per capita income was $17,596.

“The four Western states of Alaska, Hawaii, Nevada and Washington had fast non-farm income growth, mainly in manufacturing, construction and private service-type industries,” the report said.

“The five farm states of North Dakota, Montana, South Dakota, Idaho and Iowa had fast growth in farm income, mainly reflecting a rebound from the 1988 drought,” it said, adding that in Maine, both farm and non-farm income grew fast.

But Connecticut remained at the top of the list with the highest per capita income, $24,683. It was followed by New Jersey, $23,778; District of Columbia, $23,491; Massachusetts, $22,683; Alaska, $21,656; New York, $21,073; Maryland, $21,013, and New Hampshire, $20,267.

At the bottom of the list were Mississippi, $11,724; West Virginia, $12,345; Arkansas, $12,901; Louisiana, $12,921, and Utah, $13,079.

PER CAPITA INCOME GROWTH BY STATE

TOP FIVE

Alaska: +12.6%

North Dakota: +9.9%

Hawaii: +9.7%

Montana: +9.4%

South Dakota: +8.6%

BOTTOM FIVE

Georgia: +5.1

Arizona: +5.4%

California: +5.4%

Louisiana: +5.6

South Carolina: +5.6