Median Household Income Down 3.1% Since “Economic Recovery” Began in June'09

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Household Income Down by 3.1 Percent Overall Post Recession, but Many Groups Have Started to Recover Following 2011 Low-Point

Summary of Key Findings

Based on new estimates derived from the monthly Current Population Survey (CPS), real median annual household income has fallen by 3.1 percent since the “economic recovery” began in June 2009. Adding this post-recession decline to the 1.8-percent drop that occurred during the recession leaves median annual household income now 4.8 percent below the December 2007 level. However, real median annual household income has begun to recover slowly during the past three years, June 2011 to June 2014.

After adjusting for changes in consumer prices, median annual household income declined during the officially-defined recession from $56,604 in December 2007 to $55,589 in June 2009, a decrease of 1.8 percent. During the first two years of the economic recovery, as the unemployment rate and the duration of unemployment remained high, median annual household income continued its decline to $51,913 in June 2011, a decrease of 6.6 percent. During the last three years of the economic recovery, between June 2011 and June 2014, real median annual household income increased from $51,913 to $53,891, an increase of 3.8 percent (seasonally adjusted estimates).

Compared to January 2000, the beginning point for our monthly statistical series, real median annual household income is now lower by 5.9 percent. The median was $57,288 in January 2000 and $53,891 in June 2014. (All income amounts in this report are before-tax money income and are presented in terms of June 2014 dollars).

According to Gordon Green of Sentier Research: “After the steep drop in real median annual household income during the first two years of the economic recovery some measurable recovery in median household income has taken shape over the period since June 2011. Real median household income is up by 3.8 percent overall since June 2011, but gains have not been shared equally by all groups.

In terms of percentage increases in median household income over the past three years: families have fared better than nonfamilies, the employed have obviously fared better than the unemployed, households with three or more earners have fared better than households with one or no earners, Whites and Blacks have fared better than Hispanics, medium-sized households have fared better than small or large households, households with few children have fared better than households with several children, the self-employed have fared better than private or government wage or salary workers, and households in the Midwest region have fared better than households in the other three regions.”

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