Dec 17, 2013, 3:00pm EST

D.C. far outpaces nation in personal earnings

Michael Neibauer
Staff Reporter-Washington Business Journal
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D.C. residents are enjoying a personal income boom.
The District’s total personal income in 2012 was $47.28 billion, or $74,733 for each of its 632,323 residents, according to the Office of the Chief Financial Officer’s Economic and Revenue Trends report for November.
The U.S. average per capita personal income was $43,725. The highest of the 50 states, Connecticut, fell 25 percent short of D.C.
Personal income is a combination of work and non-work related components — wages and salaries, employee health and other benefits, proprietor’s income, property income and transfer payments (such as Social Security).
In terms of pure wages, D.C., on a per capita basis, was 79 percent higher than the national average in 2012 — $36,974 to $20,656. That, despite 10 consecutive quarters of slower-than-average D.C. wage growth and a $350 million slide in federal wages — the private sector is tugging the District's economy along.
Employee benefits were 102 percent higher in D.C. than the U.S. average in 2012, $7,514 to $3,710. Proprietor’s income, 137 percent higher — $9,275 to $3,906.
Social security income in D.C., meanwhile, fell 37 percent below the U.S. average last year, evidence, the CFO says, of the District’s changing, younger demographic, and a large number of retirees who many be ineligible for full Social Security benefits due to their years of government service.
The numbers suggest D.C. residents are living the high life. Some are, but, of course, it’s not that simple. Poverty is entrenched in many D.C. neighborhoods, especially east of the Anacostia River, where earnings are virtually nonexistent and the need for social services is dire. But as long as the District is booming on a per capita basis, the money should be available to help.


Michael Neibauer covers economic development, chambers of commerce, transportation and politics.


Related links: Economic Snapshot

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