Today the U.S. Department of Commerce’s Bureau of Economic Analysis released their monthly personal income data for September 2010. The chart below shows the private sector share of personal income from January 1959 to September 2010.
After dropping slightly in August, the private sector as a percent of personal income bounced back in September. Both government compensation and personal current transfer receipts were down from August. The drop in government compensation is likely due to tight budgets at the state and local level, whereas the drop in PCTR is likely due to the wearing off of the American Recovery and Reinvestment Act (the so-called “stimulus).
On the positive side, private sector compensation continues to grow($5.206 trillion), but only brings it up above where it was in January 2009 ($5.139 trillion) though still significantly under December 2008 ($5.248 trillion).
Note: “Supplements to Wages and Salaries” (benefits) in the BEA data are not broken down into “private” sector” versus “government” components. I used the ratio of private wages and salaries to total wages and salaries in order to disaggregate supplements.
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