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How has personal and disposable income changed throughout the pandemic?
With new personal income data in May released by the Commerce Department on June 25, a clearer picture of the economic recovery is starting to emerge.
The Department of Commerce defines personal income as “income received by, or on behalf of, all persons from all sources.” This includes wages, social security, unemployment benefits, etc.
From January to March 2020, before the pandemic really took hold of the United States, personal income in the United States was $ 18.95 billion. For the same period in 2021, this figure was $ 22.1 billion. The largest increase in recent history, largely due to the fact that 70% of unemployed people earned more than when they were workingg.
In April and May, those numbers started to decline, which many economists believe two factors.
The first being that of January and March 2021, revenues hit record highs after sending the second and third stimulus checks.
The second reason is related to the continuous movement of people re-enter the labor market. If the unemployed start working where they earn less than they were when they received benefits, this number will decrease.
Total income from unemployment benefits has fallen in recent months from a high level of $ 556.4 billion, after the federal $ 300 per week topper was first sent, to $ 458 billion in May as the The unemployment rate has plummeted and claims for benefits have reached an all-time high since the start of the pandemic.