Illinois still sits tied for last in the nation in personal income growth with Nevada, which is experiencing a boom and may leave the Prairie State behind.
A study by Pew Charitable Trusts says Illinois has had 0.7 percent income growth since the winter of 2007. That’s worst in the Midwest tied with Nevada for least nationally.
Pew Project Director Barb Rosewicz said the slow growth is largely due to a drop in population. Illinois is one of the few states that has been losing population in recent years. According to IRS figures, Illinois lost more than 114,000 people to interstate migration on net in 12 months ending in July 2016.
“It’s lost population for the past three years,” she said. “The fewer people that you have coming in, the less personal income that they would be generating.”
Historically, losses in higher-paying manufacturing and construction jobs and a growing low-wage service job sector have also driven down income growth. Nevada’s recent housing boom has driven their income up in the last 12 months, but Rosewicz said Illinois’ is still flat.
“[Illinois] had grown only 0.3 percent compared to Nevada’s 2.8 percent,” she said.
In the Midwest, Iowa actually saw a 0.1 percent loss in personal income over the past 12 months ending in the first quarter of 2017. They were one of only eight states to do so. Rosewicz blames falling crop prices and Iowa’s heavy reliance on their agricultural economy.
The report measures not only paychecks but also investment and retirement benefits as well as income from social programs.
