US household income rose slightly last year, roughly matching 2019
By CHRISTOPHER RUGABER, AP Economics Writer
WASHINGTON (AP) — The Census Bureau revealed that in 2024, the income of the typical U.S. household barely increased, reaching levels similar to those seen in 2019. This stagnation was primarily due to high inflation offsetting wage growth.
The data indicated that while the wealthiest households experienced significant real income growth, middle- and lower-income households saw minimal improvements.
According to the Census Bureau, the median household income in 2024 was $83,730, a modest 1.3% rise from the previous year’s $82,690. This figure represents the middle point between the highest- and lowest-earning households, providing a more accurate representation of income trends.
These findings highlight the economic discontent felt by many Americans post-pandemic, despite historically low unemployment rates. The report indicated that median household incomes have remained relatively stagnant over the past five years, with the 2024 figure of $83,730 barely surpassing the 2019 level of $83,260. This lack of significant progress contrasts sharply with the substantial 21% increase in median household income observed from 2014 to 2019.
Heather Long, chief economist at Navy Federal Credit Union, noted, “It’s evident why middle-class Americans are feeling frustrated. The constrained job market, trade tariffs, and healthcare cuts are likely to further strain middle- and lower-income households in 2025.”
The data also revealed income disparities, with the top 10% of households seeing a 4.2% increase to $251,000, while the bottom 10% experienced a 2.2% rise to $19,900. The impact of the COVID pandemic led to a three-year decline in household income post-2019, followed by a modest recovery in 2023.
Inflation, which peaked in 2021 and 2022, significantly impacted public sentiment towards the economy and contributed to Vice President Kamala Harris’ electoral defeat. However, inflation moderated in 2024, dropping to an annual average of 2.9% from the previous 8% average.
Demographic variations were also evident, with Asian and Hispanic households reporting substantial income gains. Asian median income rose by 5.1% to $121,700, while Hispanic median income increased by 5.5% to $70,950. In contrast, White incomes remained relatively flat at $92,530, and Black incomes decreased by 3.3% to $56,020.
Additionally, gender disparities persisted, with minimal earnings growth for women and widening wage gaps. Women now earn 80.9% of men’s earnings on average, a decline from 82.7% in 2023, marking the second consecutive year of regression after two decades of progress.
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