The personal income of Georgians grew by 1.65 percent in the first three months this year, thanks in part to a reduction in Social Security withholding tax. But the state still lagged behind the nationwide average gain of 1.8 percent.
The first-quarter increase outpaced the 0.97 percent gain in Georgia incomes for the last three months last year, and it marked the sixth consecutive quarterly gain in personal income, a streak that began at the end of 2009.
The numbers, contained in a report released Wednesday by the Bureau of Economic Analysis, an agency of the U.S. Department of Commerce, offered some moderately upbeat news to Georgia workers battered by high unemployment and weak job growth.
"This confirms that the recovery was intact in the first quarter," said Jeff Humphreys, director of the Selig Center for Growth at the University of Georgia. Humphreys expects personal income to continue to grow, though at a slower pace, in the second quarter, and for the year.
Personal income is defined as income received by all persons from all sources.
In the first quarter, Georgians were helped by the 2-percent reduction in the personal contribution rate for Social Security. The BEA said that reduction, which took effect this year, "accounted for most of the acceleration in first-quarter personal income growth in most states."
The personal income of Georgians has grown 5.9 percent since the fourth quarter of 2007, shortly before the economic downturn struck in full force. It's been up, down and up again since, with gains attributed to increased wages and to population increases. The 5.9-percent growth is not inflation-adjusted, however, so the real gain is less.
The U.S. average increase for the period was 6.46 percent.
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