PORTLAND, Maine (AP) - Already the poorest state in New England, Maine saw the nation’s biggest drop in household income last year, according to the Census Bureau.
Median household income dropped 3.3% from 2017 to 2018 based on the Census Bureau’s American Community Survey, the Portland Press Herald reports . The figures show household income in Maine declined from $57,486 in 2017 to $55,602 in 2018.
Maine’s aging population likely played a role as more workers transitioned into retirement, with more limited income, economists said.
John Dorrer, a labor market economist, said there’s a long-term trend underway as older workers age out of the workforce, and younger workers who replace them tend to earn less. Maine’s median age of 44.9 years is the oldest in the country.
But Dorrer, and Maine’s state economist, Amanda Rector, cautioned that the American Community Survey was based on a limited sample size, and other data suggests Maine wages are growing. Tax figures, for example, suggest wage growth, Rector said.
Glenn Mills, an economist with the Maine Department of Labor, said he expects income to grow in coming years because of the low unemployment rate.
Maine’s jobless rate hit 2.9% in August and has been below 4% for 44 consecutive months. “Unless there’s a shock to the economy, the labor market in Maine is expected to remain tight, and that’s good for wages,” he said.
Overall, median household income in the U.S. rose by 0.8%, from $60,336 to $61,937, and incomes rose in 14 states, according to the Census Bureau.
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The headline of this story has been corrected to show that the figure applies to median, not average, household income.
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