Arkansans’ incomes drop 20% in 3Q

Personal income in Arkansas fell more sharply in the third quarter than in all but six other states, according to the U.S. Bureau of Economic Analysis.

Nationwide, personal income fell 10% in the third quarter, falling in every single state and the District of Columbia, after rising 35% in the second quarter, thanks to government relief payments under the Coronavirus Aid, Relief, and Economic Security Act of 2020. The winding down of relief payments in the third quarter “more than offset an increase in earnings,” the bureau said.

Arkansas’ personal- income decrease — 20% — was double the national decline.

Only in Montana, North Dakota, Michigan, Oklahoma, Kentucky and West Virginia was the personal- income drop steeper, according to the bureau. The percentages ranged from 20.5% in Montana to 29.9% in West Virginia, which had the steepest fall in personal income.

The personal income in two states bordering Arkansas fell less than the national average.

Personal income fell 8.8% in Texas and 9.6% in Tennessee over the same period covered in the report. Personalincome declines in Louisiana, 13.8%, and Missouri, 15.3%, were smaller than the decline in Arkansas.

Personal income in Georgia fell the least in the nation — 0.6%.

In Arkansas, personal income in the third quarter totaled $143.1 billion, down from $151.5 billion in the sec

ond quarter.

Net earnings increased nearly 30% in the quarter as workers returned to their jobs, but it was unable to offset a 67.7% decline in transfer receipts, benefits received by people for which no services were performed. Net earnings rose $4.6 billion while transfer receipts dropped $12.8 billion.

For the nation, earnings increased 32.8% in the third quarter of 2020, the bureau said.

The percent change in earnings across all states ranged from 11.5% in Oklahoma to 55.3% in Nevada.

Nationwide, transfer receipts fell $1.3 trillion in the third quarter after rising $2.4 trillion in the second quarter. Transfer receipts decreased in every state and the District of Columbia, ranging from $2.1 billion in the District of Columbia to $122.4 billion in California, the bureau said.

The decrease in transfer receipts reflected decreases in state unemployment insurance compensation, and all other transfer receipts, according to the report.

“The decrease in state unemployment compensation also reflected a partial rebound in employment as workers returned to their jobs following the economic shutdown due to the covid-19 pandemic, as well as the expiration of the temporary $600 increase in weekly federal government benefits provided by the CARES act. The decrease in all other transfers reflected a decrease in the number of $1,200 economic impact payments paid to individuals that started in the second quarter,” the report said.

Property income fell 4% nationally.

It fell in every state, ranging from a 5.7% decline in Arkansas to a 1.7% decrease in Hawaii.