Incomes rose in nearly every county in the nation. Did Erie follow suit?

From Autuga County, Alabama to Weston, Wyoming, Americans are making more money these days.

And that includes Erie County, where per capita personal income — income from wages, salaries, government benefits and other sources, divided by the total population — rose 5.6% in 2021, according to newly released statistics from the U.S. Bureau of Economic Analysis.

In a year that saw wages continue to rise, folks most everywhere were making more money. During 2021, personal income increased in 3,075 U.S. counties, decreased in 36 and was unchanged in three, according to the BEA.

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But at 5.6%, income growth in Erie didn't keep pace with much of the nation, where personal income increased an average of 7.5% in 2021.

In fact, the BEA divides the change in income into five quintiles, or fifths. Based on growth, Erie ranked in the bottom fifth.

Erie personal income growth average for Pennsylvania

Ken Louie, professor of economics at Penn State Behrend and the director of Behrend's Economic Research Institute of Erie, sees at least some good news in the overall arc of Erie incomes since the era of COVID-19 began.

"The good news is we are growing (faster) than expected," he said, noting that per capita personal income grew 8.9% in 2020.

"In 2020, who would have known we would grow almost 9%?" Louie said.

That good news was served with caveats, including the fact Erie incomes continue to lag behind those in much of the country.

"We are still earning roughly 82 to 84% of the (nation's) per capita income," Louie said.

The growth of personal income in Erie County ranked 45th among Pennsylvania's 67 counties, just short of the middle of the pack.

By way of comparison, in metropolitan areas of the United States, a group that includes Erie County, personal per capita income grew by 7.3% in 2021.

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But income growth isn't the only measure of success.

"If you look at the top three richest counties (in Pennsylvania), Chester, Bucks and Montgomery, they all had lower rates of growth compared to Erie," Louie said.

Income in Erie County was not in that top tier. In fact, Erie County's per capita income ranked 35th among Pennsylvania counties. Crawford County ranked 61st, according to the BEA.

The price of inflation

In many parts of the nation, the good news contained in the BEA report is offset by the reality that inflation devoured most of the extra income.

"In Erie, we fell behind in real terms," Louie said. While per capita personal income in Erie County rose 5.6%, inflation in 2021 was 7.1% and is higher now.

In other words, higher incomes in Erie did not lead to more buying power.

Against the context of a worldwide pandemic, things could be worse, Louie said.

"I think the emotion I would express is relief and optimism," he said. "I thought the pandemic would have done more (economic) damage. I am really pleased to learn that per capita income growth was still there."

How much we make

There is more than one source for keeping tabs on how much we earn.

Among those holding jobs, Erie's County's average annual wage is $46,340 a year, according to the state Department of Labor & Industry.

Figures for per capita personal income are sometimes higher than one might expect when you figure that both retirees and children are part of the statistical mix.

The mathematical reality is that a relatively small number of high earners raise the average. For 2021, per capita personal income in Erie County was $52,741 and $48,431 in Crawford County.

According to a report in the online publication Fortune Recommends, higher wages and salaries were the main driver for an increase in personal income.

But bigger paychecks weren't the only reason. Paul Medzerian, an economist at BEA, told Fortune that efforts to boost the economy also played a role.

“The personal income increases also reflect continued payments from pandemic response legislation, including the Coronavirus Response and Relief Supplemental Appropriations Act and the American Rescue Plan Act," Medzerian said.

Contact Jim Martin at jmartin@timesnews.com.

This article originally appeared on Erie Times-News: Erie County, PA earnings rise, but not as fast as inflation