The U.S. median household income rose in 2017, while the poverty rate declined amid solid growth and job gains in the world’s largest economy, Census Bureau data showed Wednesday.
Median household income, adjusted for inflation, rose 1.8 percent last year to $61,372, from $60,309 in 2016, according to annual data on income and poverty. The poverty rate declined by 0.4 percentage point to 12.3 percent, with 39.7 million people living in poverty, down from 40.6 million in 2016. The share of Americans without health insurance was little changed at 8.8 percent, or 28.5 million.
Meanwhile, the Gini index, the most common measure of income inequality, was 0.482 in 2017, little changed from 2016. The higher the number, the more unequal the income distribution.
Americans continue to see their lot improve as the economy builds on the progress made since it emerged from the recession in mid-2009, accompanied by healthy hiring and an unemployment rate near the lowest in almost five decades. At the same time, 10 years after the financial crisis marked by the collapse of Lehman Brothers Holdings Inc., the large number of poor people and persistent inequality are a reminder that there’s more work to be done.
The report could still be welcome news for Republicans ahead of the congressional midterm elections in November, and President Donald Trump’s tax cuts implemented in 2018 may further boost growth, though his trade policy remains a risk for the economy, creating uncertainty for businesses and for employment.
Even with the better picture on overall incomes, disparities between groups persisted last year. Median earnings for men rose 3 percent to $44,408, while women earned $31,610, just 0.2 percent above 2016. Racial gaps widened, with the median income for black households down 0.2 percent to $40,258, while non-Hispanic white household income rose 2.6 percent to $68,145. Hispanic households fared better, with a 3.7 percent jump to $50,486.
This article was provided by Bloomberg News.