The average income of a household in the United States increased for the third consecutive year in 2017, as solid economic growth helped more people enter full-time jobs, keeping unemployment rates low.
The income of a typical US home US, adjusted for inflation, rose 1.8 percent from $ 60,309 in 2016 to $ 61,372, according to data recently released by the US Census Bureau. UU
At the same time, the data underscore the growing disparity between the richest and the poorest Americans, along with the lasting damage that the Great Recession caused to most American families.
US households continue to earn essentially the same as they did in 2007, just before the Great Recession.
"The income of a typical household today is around 18 years ago," said Robert Greenstein, president of the Center for Budget and Policy Priorities.
The median income adjusted for inflation remains slightly below the 1999 record of $ 62,000, the Census said.
The income of an average American household increased for the third consecutive year in 2017 as more people entered full-time, year-round, but the inequality worsened as wealthier Americans saw higher incomes.
The increase in median income last year was slower than the gains of 5.1 percent in 2015 and 3.1 percent in 2016.
Part of that slowdown reflected strong inflation, which was just 0.1 percent in 2015 and 1.3 percent the following year. It increased to 2.2 percent in 2017.
Higher prices for gas, housing and other goods and services are eroding revenue gains even more this year. Consumer prices rose 2.9 percent in July from the previous year, matching the pace of June as the fastest in six years.
The proportion of Americans living in poverty also fell for the third year in a row, to 12.3 percent, from 12.7 percent.
The figures suggest that the nation's very low unemployment rate, 3.9 percent, is forcing companies to convert more part-time workers into full-time employees.
In general, the average income of households increased and the percentage of people living in poverty decreased
President Donald Trump and Republican House of Representatives leaders have proposed cuts in the food stamp program, formally known as SNAP, and rental subsidies, which have lifted millions of people out of poverty; Trump is seen here during a rally in Evansville, Indiana, on August 30
During 2017, the unemployment rate averaged 4.4 percent, the lowest level in 17 years.
And with the ranks of the unemployed declining, companies are hiring more people who were not looking for work before.
The number of people with jobs increased by 1.7 million in 2017, according to the Census report. And the number of workers with full-time permanent jobs increased by 2.4 million.
"We continue to see that change from part-time, half-year to full-time work throughout the year," said Trudi Renwick, an assistant division chief in the Census Bureau.
Despite the reduction in unemployment rates, income inequality worsened as wealthier Americans enjoyed even higher wage increases.
The average household income is the point at which half of the households are below and the other half above. In may be a more forceful measure than the average, which is distorted by extremely high incomes among the richest households.
The richest Americans made more progress last year. Even a steady growth in the last eight years has not been enough to counteract long-term trends towards greater economic inequality.
"Weathered inequality patterns emerged, with stronger growth at the top," said Elise Gould, senior economist at the Institute for Economic Policy, a liberal think tank.
"While any reduction in poverty or increase in income is a step in the right direction, most families have barely regained the lost ground in the last decade."
Income growth was strongest for the richest 5 percent of households, increasing 3 percent to $ 237,034. For the poorest fifth of the population, income increased only 0.5 percent.
As a result, the richest 5 percent received 3.9 times the income earned by the average US family. UU That is the highest in the records dating back to 1967. In 2007, before the Great Recession, that multiple was 3.5.
The income gap between black and white households also widened, although Latinos narrowed their gap with whites
The income gap between black and white households also widened, although Latinos narrowed their gap with whites. The median income for a white household increased 2.6 percent to $ 68,145, even when the median for African-American households dropped 0.2 percent to $ 40,258. The income of Latino households, however, increased 3.7 percent to $ 50,486.
Asian households are still the richest, with an average income of $ 81,331, although that was 2.2 percent lower than in 2016.
The wage gap between men and women remained the same, with women working full time earning only 80.5 cents for every dollar earned by a male full-time worker.
The wage gap between men and women remained the same, with women working full-time earning only 80.5 cents for every dollar earned by a full-time male worker
In the last three years, the poverty rate has decreased by 2.5 percentage points
In the last three years, the poverty rate has decreased by 2.5 percentage points. Still, nearly 40 million Americans remain poor by the count of the Census Bureau.
The census also considers the impact of various government assistance programs to reduce the ranks of the poor. The agency discovered that the food stamp program, formally known as SNAP, removed 3.4 million people from poverty. Rental subsidies did the same for 2.9 million.
President Donald Trump and the Republican leaders of the House of Representatives have proposed cuts in both programs, Greenstein said, as well as Medicaid.
"If such cuts were made, we would almost certainly see an increase in poverty as a result," he said.
Even so, almost 40 million Americans remain poor according to the Census Bureau's count in their latest data
The Census report found no significant changes in the proportion of Americans without health insurance last year, despite the fact that President Donald Trump and Congress led by Republicans spent months trying to repeal the Affordable Care Act of the Obama era.
An estimated 28.5 million people remained without insurance in 2017, or 8.8 percent of the population, according to the Census. If the republican revocation had been successful, that number could have increased by 20 million people or more over time.
The Census report did find that 14 states had significant losses in coverage, while 3 states experienced gains. All states with profits had made the most of Obama's health law by expanding their Medicaid programs as well.
But so did most states with coverage losses, including Massachusetts, whose state-level review had been a template for Obama's law.
The Census report found no significant changes in the proportion of Americans without health insurance last year, even though President Donald Trump and Congress led by Republicans spent months trying to repeal the Low-Cost Health Care Act of the era. Obama