Personal income growth slows

Personal income growth in the Pee Dee slowed dramatically in 2007, compared with figures from 2006, according to a release by the Department of Commerce’s Bureau of Economic Analysis.

The personal income figures measure all the money people take in, including wages, rental receipts, interest and dividend income, and government payments.

Although it isn’t the sum of all economic activity in an area, it is the largest percentage that can be calculated on such a wide scale.

“When people are comparing standards of living throughout the nation, they look at per capita personal income, and that can be problematic,” said Dr. M. Barry O’Brien, Dean of the School of Business at Francis Marion University. “It is a widely used measure, and part of the problem with looking at year-to-year changes is that it can fluctuate for lots of different reasons … and it’s tough to attribute the change.”

Total personal income in what is considered the Florence Metropolitan Statistical Area, which consists of Florence and Darlington counties, rose by only 4.4 percent. In 2006, personal income increased by 6.6 percent.

Per capita personal income rose by only 3.9 percent in 2007 to $30,463 from $29,328. In 2006, per capita personal income increased by 6.1 percent.

The area’s growth rates lagged behind the nation’s 6.2-percent growth in overall personal income, as well as the 5.2-percent national growth rate in per-capita totals.

Lake City native Darla Moore, chairman of the board for The Palmetto Institute, recently posted her views at http://www.palmettoinstitute.com on South Carolina’s battle to keep up in the personal income sector.

“The Palmetto Institute’s focus and purpose is simple and singular — to raise the per capita income for all South Carolina families,” she said online. “The ways and means to accomplish this goal is neither.

“This can’t happen without a solid foundation of quality education, reliable infrastructure, and vibrant communities with a sustainable environment ... and underlying is an accountable government and a competitive, adequate, balanced and fair tax structure.”

According to the personal income study, the Florence Metropolitan Area ranked No. 264 in growth out of the nations’ 363 MSAs that were counted.

South Carolina’s per capita income was ranked as the fourth-lowest in the country, followed by Arkansas, West Virginia and Mississippi.

O’Brien agreed with Moore’s stance on education. He said the state has to begin taking responsibility to bring in more college degree-based jobs.

“That 264 rank is correct,” he said. “It’s not skewed or exaggerated, and we need to accept the challenge in South Carolina. We need public policy that helps us improve education and training of our work force.”

O’Brien said people in South Carolina and the Pee Dee have a strong work ethic, so he doesn’t think that’s where the problem lies.

“Personal income is lacking here because, often times, what we are able to offer companies that are willing to locate here is that we can train the employees for the positions — usually hourly positions,” he said. “But you can’t train a chemist overnight. They need long-term education.”

O’Brien said he doesn’t dispute that progress is being made, but added that it takes some time for the work that is being done to show up in the figures.

Of the nation’s 366 MSAs, 208 saw slower personal income growth than last year.

In 2006, Florence and Georgetown counties had some of the best overall personal income growth among South Carolina’s top 10 counties.

In Florence, the fastest growing income generator in 2007 was the construction sector. It grew by a little less than 11.5 percent.

The government and government enterprise sector, which includes military, state and local government compensation, increased in 2007 by about 4 percent, as well.

The biggest decline among the sectors was in finance and insurance at 1.5 percent and manufacturing, although it only decreased by a little less than 1 percent.

Regional statistics on micropolitan areas will be released later. Some of those areas include Dillon, Georgetown, Lee, Marion and Marlboro counties.

By the Numbers:

Per capita personal income for Pee Dee and surrounding counties and state rankings for 2006 (the most recent data available):

Chesterfield: $23,208, 33rd

Darlington: $27,36, 18th

Dillon: $21,916, 39th

Florence: $30,334, ninth

Georgetown: $32,524, sixth

Horry: $27,809, 15th

Lee: $21,601, 43rd

Marion: $21,608, 42nd

Marlboro: $20,661, 46th

Williamsburg: $21,038, 45th

On the web:

Bureau of Economic Analysis: http://www.bea.gov