New Report Shows Total Personal Income Increases in the Hudson Valley
However, findings from the Marist Bureau of Economic Research also show that those who commute outside the region are seeing the most substantial income gains
June 3, 2019—A new report from the Marist Bureau of Economic Research shows total personal income increases for Hudson Valley residents—but the biggest gains were seen by those who commute outside the region.
“Income from commutation continues to dominate earned income growth,” said Christy Huebner-Caridi, Director of the Bureau and Assistant Professor of Economics at Marist. During the period covered in this report—adjusted for changes in the number of persons employed—commutation income increased 5.56% compared to 4.4% for income earned within the Hudson Valley.
“The primary causes for this phenomenon are the increasing number of residents who commute to New York City—the highest-paid region of the state—along with the growing trend in high wage telecommuting opportunities,” said Caridi.
The report, “Total Household Income Hudson Valley 2013- 2017,” includes county-level detail and statewide comparisons. The report was compiled using data from the U.S. Bureau of Economic Analysis. The full report can be found here.
The report also shows that only 60 percent of all jobs held by Hudson Valley residents are within the region. “This really does point to a need for more jobs in the Hudson Valley,” said Caridi, who also noted these findings are consistent with the Bureau’s recent report “Commutation Trends in the Hudson Valley.”
Other key findings include:
• Total personal income (TPI) in the Hudson Valley grew 5.7 percent ($9.3 billion) on the year, almost two percentage points higher than the five-year trend.
• Consistent with previous findings, per capita earned income in Westchester, Putnam, Rockland and Dutchess counties ranked in the top 10 statewide.
• Commuter income continues to be the primary driver of earned income growth, rising 6.5percent ($2.2 billion) on the year, compared to an increase of 4.6 percent ($3.4 billion) for non-commuter income.
• Putnam County is the most dependent on commuter income at 55.3 percent, followed by Westchester at 30.4 percent.
• On average, 60 percent of all jobs held by Hudson Valley residents are within the region.
• Over the five-year period, commuter income has grown more than two times as fast as non-commuter income.
• The growth in unearned income—interest, dividends and rents—remained volatile, increasing 5.4 percent ($2.0 billion) on the year, which is below the five-year trend growth rate of 5.6percent and below the state growth rate of 5.5 percent ($14.0 billion). This outcome is directly attributable to Westchester County, which ranked second statewide, and New York County, which ranked first.
About the Marist Bureau of Economic Research
Housed within the Marist School of Management, the Bureau of Economic Research typically releases five reports each year regarding different aspects of the Hudson Valley economy, including household income, income tax analysis, commutation patterns of workers, migration, and overall employment and wages. The Bureau also conducts economic impact studies, as well as forecasting and policy analysis.