Incomes rise in Northwest Arkansas
Posted on Friday, August 8, 2008
URL: http://www.nwanews.com/nwat/Business/67899/
People in Nor thwest Arkansas made more money in 2007 than they did in 2006, but a study released Thursday by the U. S. Department of Commerce’s Bureau of Economic Analysis showed that Northwest Arkansas ’ average yearly income is still more than $ 7, 000 below the national average.
The study focused on the personal income growth of national metropolitan statistical areas. The Fayetteville area consists of Benton, Washington and Madison counties in Arkansas and McDonald County, Mo.
Bureau economist David Lenze said what makes the Fayetteville area unique is that the income for families went up 7. 6 percent from 2006 to 2007, a little higher than the national increase of 6. 2 percent. It’s still a little slower than the 7. 7 percent increase the area saw from 2005 to 2006, he said.
Lenze said the presence of leading corporations in Northwest Arkansas played a big part in the increase. Those corporations include Wal-Mar t Stores Inc., Tyson Foods Inc., and J. B. Hunt.
Additionally, personal income was up among Northwest Arkansas workers in 2007. In 2006, people in the area earned an average of $ 29, 807 per year, but in 2007 it increased by about 4. 6 percent to $ 31, 191.
The 2007 per capita figure is still well below the national average of $ 38, 632.
It’s hard for people to believe that even booming Northwest Arkansas is below the national average considering that in 2007 employment growth was still strong, said Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas.
“ In order for Northwest Arkansas to catch up, we’ve got to grow a little bit faster, ” she said. “ We need more people making more money than the national average. ”
Deck predicted the per capita income will continue to grow through 2008, but at a little slower pace.
“ It’s the real estate market and the overall economic downturn, ” she said as a reason for the slower growth.
As for the rest of the nation, the report stated that places along the Gulf Coast, particularly ones affected by Hurricane Katrina, were growing the fastest. Gulfport, Miss.; Pascagoula, Miss.; and New Orleans were all boosted by federal payments to rebuild property destroyed or damaged by Hurricane Katrina in 2005.
The report showed that the 20 slowest growing areas were all in the Midwest states of Illinois, Indiana, Michigan, Ohio and Wisconsin. Personal income growth in most of those areas was one-half the national pace.