Per Capita Income Grows in the South Bend – Elkhart Region, Slower than the National Pace
Per capita personal income (PCPI) continues to grow in the South Bend – Elkhart region, but at a slower rate than in recent years and not as fast as the nation.
Based on the recently released U.S. Bureau of Economic Analysis (BEA) data, from 2018 to 2019, PCPI in the South Bend - Elkhart region grew 1.5%, compared to both the nation’s rate of 3.5% and the region’s 3.7% growth between 2017 and 2018.
More than $34.5 billion of total personal income circulated in the South Bend – Elkhart region’s five counties in 2019. That was an increase of over $500 million of total personal income compared to 2018, resulting in a $696 increase in per capita personal income.
“Putting the data in a national context, the South Bend – Elkhart region’s per capita personal incomes are below the national averages, possibly due to a lower cost of living,” said Indiana University South Bend Professor of Economics and Director of the Bureau of Business and Economic Research, Dr. Hong Zhuang. “And the local income growth rates are also lower than the national average growth rate.”
The region’s 2019 PCPI was $47,407, which is 83.92% of the national PCPI.
“The South Bend – Elkhart region is in year four of an eight-year Regional Economic Development Strategy focused on Industry Growth, Entrepreneurship, Workforce Development, Talent Retention, and Inclusion, with the ultimate goal being to match or exceed national per capita income by 2025,” said South Bend – Elkhart Regional Partnership President and CEO, Regina Emberton. “The slowing pace of per capita personal income growth in 2019 reemphasizes the need for critical investments that will ensure long-term economic sustainability.”
Per capita personal income is calculated as the total personal income of the residents of a given area divided by the population of the area. Personal income includes wages, dividends, interest earnings, home rental and business income, and government benefits such as Social Security. In computing per capita personal income, BEA uses Census Bureau midyear population estimates.
The South Bend – Elkhart region includes Elkhart, Marshall, and St. Joseph County in northern Indiana and Berrien and Cass County in Michigan; a geographic region with over 729,613 residents.
Source: South Bend - Elkhart Regional Partnership News Release