The average household income in the United States rose in 2017 for the third year in a row, while poverty declined further, US government data showed on Wednesday.
The US Census Bureau released government data on Poverty and Health Insurance Coverage that indicated a 1.9% rise in US household income to $61,400 last year.
The average household income in the United States is always associated with pre-recession estimates for 1999 and 2007, the years when household income averages reached their highest levels. This is true because you are explaining changes in the cost of living and change in the 2014 census question.
The report also showed that the poverty rate, referring to the percentage of people living in the poverty, dropped to 12.4% last year, from 12.8% in 2016. The Census Bureau also said that about 28.5 million people did not have health insurance in 2017, not statistically different from the year before.
The poverty threshold in 2017 was an income of $24,858 for a family of four, and the figure is similar to the downward trend in poverty which has persisted since 2014 under former President Barack Obama.
However, the qualitative jump in income highlighted in Wednesday’s report shows the recovery of the economy from the 2007 recession felt by many US households in 2017 driven largely by a strong labor market and active economic growth.
Equity markets and general sentiment rose during President Trump’s term, but he inherited a relatively low trend in unemployment and income levels among other measures such as poverty.
The US economy added 2.2 million jobs in 2017 and overall unemployment fell 4.1 percent. Since then, the unemployment rate has fallen to an 18-year low of 3.9%, and the strong economy continues to find new jobs at a relatively fast pace.