Indiana ranked 44th in nation for personal income growth

The recent publishing of the income report by the U.S. Bureau of Economic Analysis has IU freshman Sara Sidery thinking twice about staying in Indiana after graduation. With Indiana ranking 44th in the nation for personal income growth in 2007, IU students such as Sidery are now considering the option of out-of-state jobs. \nHowever, those students planning to leave Indiana in search of jobs might also be affected. States such as Michigan, Arizona and Colorado are among those states that ranked in the lowest quartile of income growth in 2007.\nPersonal income measures all income received by the consumer. This includes dividends, interest, rent and transfer payments in addition to wages earned. \nThe release of the income data coincides with the release of a new campaign ad from Gov. Mitch Daniels praising Indiana’s economy. However, David Lenze of the Bureau of Economic Analysis said that Indiana, like most of the states in the Great Lakes region, has been growing slowly in the past four years. Lenze said it probably has something to do with Indiana’s large focus on its industrial base, whereas other states are focusing more on areas such as finance and insurance.\nMichael Alexeev, an economics professor at IU, said Indiana’s focus has been on manufacturing. Unfortunately, the demand and supply of manufacturing has declined recently, and Indiana has suffered as a result, Alexeev said. \nThe area of construction contributes a little bit more in Indiana than it does nationally, Lenze said. Areas such as finance and insurance were flat in Indiana, though they were one of the most prevalent industries in the rest of the United States. \n“Nothing sticks out; it’s just that most of the industries in the Indiana area were growing slower than the rest of the country,” Lenze said. \nIndiana’s per capita personal income in 2007 was $33,616; 13 percent below the national average. It was the 37th lowest per capita personal income in the United States.\nPer capita income is the amount each citizen would receive if the yearly income generated by a country from its productive activities were divided equally among everyone.\nAnna Easton, senior faculty lecturer at the Kelley School of Business, said she is not surprised that many students are considering leaving Indiana in search of a better job. Business students, especially those with options, will more than likely take a job outside of Indiana, where they have more of a chance for financial and professional growth, Easton said. \nAccording to the report published by the Bureau of Economic Analysis, U.S. per capita income grew 5.2 percent in 2007, down from 5.6 percent growth in 2006. Indiana’s per capita income growth rate was a low 4.1 percent compared to New York’s 7.6 percent and Louisiana’s 9.2 percent. \nJunior Brian Yensho said he wants to work in a state that allows him the possibility of being able to make a competitive wage – an income that would justify the amount of time, energy and money that was put into his education and professional development. Yensho also commented that with the prices of everyday things on the rise, it’s becoming more difficult to be a student and a resident in the state of Indiana.