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Economy

Californians' income dropped by $40 billion in 2009

Mark Glover - The Sacramento Bee

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August 11, 2010 06:50 AM

Government statisticians have put a number on Californians' paycheck pain last year: about $40 billion.

The federal Bureau of Economic Analysis said personal incomes of Golden State workers fell by that amount in 2009 compared with the previous year — the state's first year-to-year decline since World War II. In the Sacramento region, income was off about $800 million.

The bureau said 2009 income statewide totaled $1.56 trillion, down about 2.5 percent from $1.6 trillion in 2008. The 2009 level also came in just under the 2007 total.

California's decline was a third more than the national 1.8 percent personal income drop, reflecting the relative intensity of the state's recession.

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State Department of Finance officials on Tuesday broke out bureau numbers for the Sacramento-Arden Arcade-Roseville region, showing personal income of about $85.6 billion in 2009, down about 1 percent from nearly $86.4 billion in 2008.

The numbers came as no surprise to analysts, state government officials and job industry professionals, given double-digit statewide unemployment and sagging industry segments throughout the California last year.

H.D. Palmer, a spokesman for California's Finance Department, cited three factors behind sliding 2009 incomes.

To read the complete article, visit www.sacbee.com.

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