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South Dakota personal income update.

Article Excerpt
Personal income in South Dakota grew 6.9 percent in 2007, up from 2.6 percent in 2006. According to preliminary 2007 estimates released in late March by the Bureau of Economic Analysis (BEA), South Dakota's rate of growth from 2006 to 2007 ranked eighth in the nation. On average, personal income has grown 4.8 percent for the last four years in South Dakota.

Personal income data provide important information on the economic structure of states and local areas over a period of time. This article includes a review of estimates released by the BEA on personal income, per capita personal income and disposable personal income for the U.S. and the states making up the Plains region for 2003 through 2007. The Plains region includes the states of Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota.

In addition to a review of the Plains region, the last section includes data on the significant differences in the sources of personal income as well as BEA data on the sources of employment in South Dakota. This section will include data that will help answer questions such as: What share of total earnings does the retail trade sector hold in South Dakota's economy? What industry has the largest number of employees?

Defining Personal Income and Its Components

Personal income is defined as income received by all persons from all sources. It includes investment and property income (dividends, interest, and rent), and personal current transfer receipts. Personal income is measured before the deduction of personal income taxes and other personal taxes. Included in income are:

--Private and government wage and salary disbursements: monetary compensation for employees and corporate officers, tips, commissions, bonuses and any payments-in-kind that constitute income to the recipient.

--Other labor income: represents employer contributions to privately administered pension and welfare funds and other small items such as directors' fees and compensation of prison inmates.

--Farm and nonfarm proprietors' income: monetary income and income -in-kind of sole proprietorships and partnerships and tax-exempt cooperatives.

--Rental income of persons: monetary income of persons from the rental of real property (excluding the income of persons primarily engaged in the real estate business),

--Personal dividend income: measures the dividends received by persons from all sources.

--Personal interest income: interest income of persons from all sources.

--Personal current transfer receipts: payments to persons who do not render current services. Included are payments by government to individuals (i.e., Medicaid, Medicare, food stamps, unemployment insurance benefits, veterans benefits, etc.) and to nonprofit institutions serving individuals. It also includes business payments to persons (i.e., liability payments for personal injury, corporate gifts to nonprofit institutions, etc.).

--Less personal contributions for social insurance: consists of payments by employees, the self-employed, and other individuals who participate in the following programs: federal old-age, survivors, disability and hospital insurance; supplementary medical insurance; state unemployment insurance and temporary disability insurance; railroad retirement; government employee retirement and veterans life...

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