Per Capita Personal Income in Baker, Malheur, and Union – 2022
April 22, 2024The Bureau of Economic Analysis publishes county level personal income data. Personal income has three main components: net earnings (wages, salaries, employer contributions); personal current transfer receipts (retirement, Medicare, unemployment insurance); and dividends, interest, and rent. A county’s total personal income is the sum of all income generated by each resident of the county. Dividing total personal income by total population produces per capita personal income (PCPI): the average income per resident regardless of age. This doesn’t actually tell us how much income the average resident receives. However, much the same as per capita GDP, per capita personal income provides a way to make economic comparisons with other areas. It can also highlight trends and changes that warrant further study.
Baker, Malheur, and Union counties accounted for roughly 40% of Eastern Oregon’s population in 2022: roughly 75,000 people. Malheur ranked 20th, Union ranked 24th, and Baker ranked 28th in terms of population among Oregon counties. In terms of PCPI however, Union ranked 30th, Baker ranked 31st, and Malheur ranked 36th.
Baker County
Baker County’s PCPI reached $48,666 in 2022, an increase of 1.1% over the previous year; adjusting for inflation turns the gain to a loss of 6.3%. Less than half (45.7%) of Baker’s PCPI came from net earnings, with the second largest portion from transfer receipts (34.1%). The county ranked 32nd in per capita net earnings in 2022, but 19th in growth of per capita net earnings from 2012 to 2022. Per capita net earnings increased by 8.1% since 2021, or 0.2% adjusted for inflation. All Oregon counties saw an increase in net earnings over the ten-year period and all saw an increase since 2021.
Baker’s per capita transfer receipts ($16,599) ranked 11th in the state. Per capita transfer receipts decreased by 7.8% since 2021. Just under 35% of income from transfer receipts was in retirement and disability insurance benefits, the lion’s share (96.6%) of which was from social security. Medical benefits accounted for 42.6% of income from transfer receipts: 46.2% of that from Medicare and 53.1% from public assistance medical care. Veterans’ benefits accounted for 7.5% of total transfer receipts and income maintenance benefits accounted for 9.6%. Transfer receipts helped to elevate Baker’s personal income as did dividends, interest, and rent.
Baker’s per capita dividends, interest, and rent ($9,839) ranked 18th in the state. Per capita dividends, interest, and rent grew by 42.1% for the county from 2012 to 2022. Baker was 19th in the state for growth in this component for the period. Per capita dividends, interest, and rent increased by 2.8% since 2021.
Growth or loss in components of per capita income comes from several factors. Shifting age demographics play a key role for a county. While Baker County’s total population increased by 5.8% over the last 10 years, the 54 or younger population increased by only 0.9%. This translates to a gain of only 90 people for the age group, with the prime working-age population (25 to 54) adding 110 and those 24 or younger dropping by 20. The 55 or older population, on the other hand, expanded more rapidly during the 10-year period. Growth for the age group was 13.0% and the group picked up about 850 people, all of which were 65 or older as the 55 to 64 age group lost about 230. For Baker, the number of young residents who draw less income from net earnings and dividends, interest, and rent diminished, while the number of older residents who draw more income from these two components increased. As a result, both components felt upward pressure and saw growth for the 10-year period.
Union County
Union County’s PCPI reached $48,999 in 2022, a gain of 0.5% since 2021; adjusting for inflation turns the gain to a loss of 6.8%. Just over half (51.7%) of Union’s personal income came from net earnings, with the second largest portion (33.0%) from transfer receipts. The county was in the bottom middle-of-the-pack (22nd) in terms of per capita net earnings in 2022, and 32nd for growth in net earnings from 2012 to 2022. Per capita net earnings grew 6.2% from 2021 for the county but decreased by 1.5% when adjusted for inflation.
Union’s per capita transfer receipts ($16,170) ranked 17th in the state. Per capita transfer receipts decreased by 7.8% percent since 2021. A little under one-third (31.4%) of income from transfer receipts was in retirement and disability insurance benefits, the majority share (90.0%) of which was social security. The largest portion of transfer receipts (45.5%) came from medical benefits: 46.4% from Medicare and 53.3% from public assistance medical care. Veterans’ benefits accounted for 6.0% of total transfer receipts and income maintenance benefits accounted for 9.5%.
Union’s per capita dividends, interest, and rent ($7,487) ranked 28th in the state. This component grew 35.1% for the county from 2012 to 2022. Union was 25th in the state for growth in per capita dividends, interest, and rent for the 10-year period. Deschutes County showed the most growth (+85.9%), while Malheur County showed the least growth (+12.1%). Per capita dividends, interest, and rent increased by 2.1% for Union since 2021.
Union’s total population increased by 1.9% from 2012 to 2022. The working age population was relatively unchanged over the period declining 0.1%, or 20 people. However, the age groups that make up the working age population were vastly different. The 18 to 24 age group, which is aided by the presence of Eastern Oregon University (EOU), grew 11.2% which translates to 313 individuals. The prime working age group (25 to 54) grew only 2.0% (+179). The 55 to 64 age group declined 13.7%, a drop of 512. The two age groups outside the working age population also differed widely. The 17 or younger age group saw 10.1% decline (-600) while the 65 or older age group saw 23.9% growth, an additional 1,118 individuals. Despite the decline in the 17 or younger population, Union County still holds a 24 or younger population that accounts for nearly one-third of the county’s total population. Many college students work only part time in low wage jobs or not at all, and most of the population younger than 18 draws little or no income from earnings. The high share of young residents and the slow growth of prime working-age residents put downward pressure on per capita net earnings. At the same time, a rapidly expanding retirement age group puts upward pressure on dividends, interest, and rent.
Malheur County
Malheur County’s PCPI increased to $38,407 in 2022, a gain of 0.6% over 2021; adjusting for inflation turns the gain into a loss of 6.7%. Less than half (47.0%) of Malheur’s PCPI came from net earnings with the second largest portion from transfer receipts (39.7%). The county was 35th in per capita net earnings, but 24th in growth for net earnings from 2012 to 2022. Per capita net earnings increased by 6.2% for Malheur since 2021, or -1.5% when adjusted for inflation.
Malheur County’s per capita transfer receipts ($15,265) ranked 22nd in the state. Per capita transfer receipts decreased by 6.4% since 2021. Less than one-fourth (22.9%) of the county’s income from transfer receipts was in retirement and disability insurance benefits, nearly all of this (97.9%) was from social security. Over half of the county’s transfer receipts (54.6%) came from medical benefits, with just 30.9% from Medicare and a much larger 69.0% from public assistance medical care. Veterans’ benefits accounted for 3.2% of total transfer receipts and income maintenance benefits accounted for 13.3%.
Malheur’s per capita dividends, interest, and rent ($5,075) ranked 36th in the state. Per capita dividends, interest, and rent increased by 12.1% for the county from 2012 to 2022. Malheur was 36th for growth in this component for the period. Per capita dividends, interest, and rent increased by 1.3% for Malheur since 2021.
Malheur County’s population grew 2.2% from 2012 to 2022. The 54 or younger age group increased by 2.5% while the 55 or older age group increased by 1.4%. This translates to a gain of 580 for the younger group and a gain of 120 for the older group. The fastest growth came in the 18 to 24 age group which grew 5.1% (+153 people). Next was the 65 or older group which added 203 individuals for 4.1% growth. The 55 to 64 age group declined by 2.3% (-83 people). Like Union with EOU, Malheur County’s Treasure Valley Community College helps prop up the county’s 18 to 24 age group. Also like Union, Malheur’s younger population puts downward pressure on earnings as well as dividends, interest, and rent. Malheur County also feels extra downward pressure on these components. The county is home to Snake River Correctional Institution, which can house roughly 3,000 adults in custody (AICs). The AICs population, which amounts to more than 9.0% of the population, likely adds little from earnings and from dividends, interest, and rent, and yet is counted in the total population. As a result, a sizeable chunk of Malheur County’s low PCPI may stem from its 24 or younger and AICs populations, relative to the size of its total population.
The Sum of Things
Baker, Malheur, and Union accounted for 40% of Eastern Oregon’s population in 2022. All three counties ranked in the bottom third among Oregon counties in terms of PCPI. Baker and Union had similar levels of PCPI, which occurred through different income components and different age demographics. Union and Malheur each have a college that helps to prop up the younger age group, but this likely puts downward pressure on per capita earnings as well as dividends, interest, and rent. The relative size of Malheur County’s AICs population dilutes per capita components such as earnings and dividends, interest, and rent. This likely helped to hold the county near the bottom of state rankings in PCPI and these per capita income components.