SIOUX FALLS, S.D. (KELO) — The real median household income grew to $81,740 in 2023 from $69,850 in 2022 but the income is still under 2021, according to the U.S. Federal Reserve in St. Louis (FRED).
Gov. Kristi Noem said in a news release that the state’s growth was the fastest of all 50 states.
The growth was substantial but the state’s real median household income also plunged from $82,750 to $69,850 in 2022, according to FRED.
Median income is the mid-range point of household incomes. Half of the household incomes are below that $81,740 while half are above it. Real median household income has been adjusted for inflation.
Median household incomes include all the income made in a household. The Missouri Census Center Data Center said it’s often viewed as a more accurate reflection of households are doing financially than average income for example. Average income can be swung by one or two excessively high or low incomes.
For 2023, the real median household income increased to $80,610 in the U.S. The Economic Policy Institute said on Sept. 10 that the income for lower-income households rose faster than for those at the median or at the top. The income for the 10th-percentile household increased 6.7% between 2022 and 2023.
The increase in median household income in the U.S. as a whole is the first since the pandemic.
The real median household income is an indicator of how well the economy is doing. It can mean that households can better afford groceries and other costs, even have more disposable income.
How does South Dakota’s median household income compare?
Compared to neighboring states, the state’s median income is higher than Iowa’s ($80,860), North Dakota’s ($76,960) and Wyoming’s ($79,690). It’s lower than Nebraska’s ($89,190) and Minnesota’s ($90,340).
Aside from Wyoming and North Dakota, compared to states with under 1 million in population, South Dakota’s is lower than the $86,340 in Delaware, $98,190 in Alaska and $85,190 in Vermont.
What earners gained the most with median income?
Across the U.S., non-Hispanic, white households made the most gains in median income, according to the U.S. Census Bureau.
South Dakota’s demographic makeup is about 80% white.
Full-time male workers gained 3% in real median earnings while real median earnings by women increased by 1.5%. This is for year-round full-time workers in each sex.
The year-round full-time female-to-male earnings ratio fell for the first time since 2003, according to the U.S. Census Bureau. The ratio to 82.7% from 84% in 2022.
In 2022, South Dakota women who were full-time wage and salary workers had median usual weekly earnings of $886, or 82.3% of the $1,076 median usual weekly earnings of their male counterparts, the U.S. Bureau of Labor Statistics said.
When does real median household income grow the most?
The highest median household income was found amongst those aged between 45 and 54 in 2023, according to Statista.
Individuals in their 40s and 50s are usually entering or are in the peak earning periods of their careers.
