Composition of Personal Income

How’s the Prince William Sound Region performing?
Personal incomes continue to increase in the region, as does the proportion of personal income from net earnings, which increased by 0.6% between 2012 and 2013. This increase can be a function of increased wages and increased economic activity. PWSEDD will continue to track the composition of personal income as a proxy for economic activity due to the difficulty of isolating a dataset for gross regional product, which would be a broader indicator of economic value generated in the region.

How is this metric determined?
Personal income is comprised of net earnings (the sum of wage and salary disbursements, supplements to wages and salaries, and proprietors' income less contributions for government social insurance, plus an adjustment to convert earnings by place of work to a place-of-residence basis). dividends, rents and interest; and transfer payments (government payments to individuals for income maintenance and social well-being).

Why does this matter?
The sources of personal income provide an indication of economic well-being within the region. Net earnings provide an indicator for economic activity, worker value and productivity; dividends, rents, and interest provide an indicator for wealth accumulation; and transfer payments indicate economic dependency or vulnerability.

Source: U.S. Bureau of Economic Analysis, Local Area Personal Income and GDP