Personal income is the sum of all income received by, or on behalf of, the residents of a region. The dominant component of personal income is wage and salary disbursements, which reflect the sum of all workers’ pay before taxes and other deductions. Dividends, interest, and rental income received from investments such as mutual funds, bank accounts, and property make up just under 18 percent of New England’s personal income. Transfers, mainly in the form of Social Security, Medicare, disability insurance, and food stamps, account for the third largest source of personal income; these payments represent a “transfer” of financial resources from the government to individual residents.

Between 2002 and 2008, New England’s total personal income grew by nearly 32 percent, but was outpaced by the growth rate of national income. This is due in large part to relatively slow population growth in the region. A review of the Per Capita Personal Income chart illustrates that personal income has grown faster for most New England states on a per capita basis than for the nation as a whole.

New England’s personal income growth primarily reflects the more than 41 percent growth in Transfers. The Dividends, Interests and Rent category saw growth rates just over 40 percent, slightly under the growth rate of national Dividends, Interests and Rents. New England’s wage and salary growth also remained below that of the nation, growing about 28 percent.