- Race, age, and geographic location all factor into how badly households have been hit by post-recession money woes
- Only householders aged 65-74 saw an increase in average income
PUBLISHED: 16:04 EST, 22 August 2013 | UPDATED: 16:25 EST, 22 August 2013
The average household is earning less than when the Great Recession ended four years ago and some Americans are affected even more than others.
U.S. median household income, once adjusted for inflation, has fallen 4.4 percent since the official end of the recession, according to Census Bureau statistics.
Specific groups such as blacks, the young, and the upper-middle-aged have experienced even larger than average drops in income.
Money woes: The Great Recession may be over, but a new study says average American household income has dropped since the end of the recession
Younger people and those aged between 55 and 64 were hit worse than other age groups. In the older group, income dropped from $62,842 to $58,432 on average.
In only one group did median income go up. Americans aged 65 to 74 saw their average income go from $40,885 to $42,984.
In addition to age and marital status, race was a factor in household income drops.
Worst off were African American households which, according to the study, saw a larger income drop since the end of recession than other groups.
Interestingly, increase in college enrollment during the recovery caused income to drop across all education levels.
Somewhat less surprisingly, households headed by unemployed persons were the hardest hit of all with a 21 percent decrease in average income.
Crunched: A graph from the authors of the study, Sentier Research, shows unemployment in black and houshold income in red
POCKET CHANGE: HOW DIFFERENT AMERICAN HOUSEHOLDS HAVE BECOME EVEN WORSE OFF SINCE THE RECESSION
The Great Recession hit most American households where it hurts: in their pockets. Some, however, were affected more than others. Though median income has risen since plummeting after 2008 and hitting a low in summer 2011, average American household income is still 6% below pre-recession levels. And for most American households, income is down from levels seen at the end of the Great Recession.
Factored out: Younger households, minority households, and households in the South and West have seen sharper declines in income since the end of the recession four years ago
- Americans household headed by those aged 55-64: Income down 7 percent
- Householders under 25 years old: Income down 9.6 percent
- Householders 65-74 were saw the only increase: Income up 5.1 percent
- Median income for white households down 3.6 percent
- Black household income dropped 10.9 percent
- Hispanic housholders saw a 4.5 percent drop
- Southern households saw an average income decline of 6.2 percent
- Northeastern household income dropped 3.9 percent
- Households living in the West saw a 5.4 percent decline
- Midwest average household income was up a statistically insignificant 0.8 percent
In fact, according to a report from Sentier Research, every group is worse off to some degree except for those aged 65 to 74.
The median, or midpoint, income in June 2013 was $52,098. That’s down from $54,478 in June 2009, when the recession ended.
And it’s below the $55,480 that the median household took in when the recession began in December 2007.
The study found that both family households and single Americans were affected.
The average income for single people fell from $33,815 to $31,166. Men living alone were hit worse than women living alone with a drop of 9.1 and 6.5 percent drops respectively.
Married couples were affected less so. Average income for them fell by 2.6 percent.
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