PHOENIX — Increases in “transfer receipts,” a term used to describe money from government sources, were the leading contributor to personal income growth in all states. However, in Arizona, increases were not solely from relief payments provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, state unemployment benefits, and other pandemic-related programs.
According to new estimates from the Bureau of Economic Analysis, with a personal income growth rate of 8.4%, Arizona tied with Montana for the fastest rate of growth in personal income in 2020.
Arizona was one of just a handful of states also to see a substantial increase in 2020 in “net earnings,” which includes wages, salaries, and proprietors’ income. Net earnings in Arizona rose by 3.5% last year, well above the national average of 0.3%, and the 5th fastest net earnings rate of growth. More than half of states saw net earnings decreases last year.
In addition, the Arizona Office of Economic Opportunity in February released a report projecting strong job growth in the state over the next two years, with the largest gains happening in sectors hit hardest by the pandemic.