Although Connecticut still offers the nation’s highest wages, federal officials say personal income in the state last year grew at a much slower pace compared to national averages.
Personal income in Connecticut rose at an annual rate of 3.4 percent in 2018, ranking No. 42 in the country in growth, according to the U.S. Bureau of Economic Analysis. Nationally, wages last year grew by an average of 4.5 percent.
The state’s wage uptick last year ranked fourth in New England, where wages grew by an average of 3.9 percent in the six states, outpacing only Vermont and Rhode Island (3.1 percent wage growth).
For the year, workers in the state earned more than $266.3 billion, up from $257.7 billion in 2017. The average worker in Connecticut earned $74,561 in 2018, which ranked as the highest average income for any state.
Connecticut’s poor ranking in 2018 is still an improvement vs. 2017. The state ranked No. 44 nationally in wage growth that year, which was at 1.5 percent. That increase ranked last in New England for the year.
Meantime, U.S. wages rose modestly in 2018 from 4.4 percent to 4.5 percent. Personal income rose in all states and the District of Columbia.
The percent change in wage growth last year ranged from 2.9 percent in Hawaii to 6.8 percent in Washington.
Despite moderate gains in 2018, Connecticut wages picked up during the fourth quarter, growing by 5.2 percent during the three months. That led all New England states in wage growth for the quarter, and ranked it No. 22 nationally.
The state’s wage growth for the quarter was led by the finance and insurance sector, followed by nondurable goods and professional, scientific and technical services.
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