Median Household Income Stable in August 2016

Median household income in August 2016 stood at $57,380, according to Sentier Research, which was not significantly different from the July 2016 median, after adjusting for inflation. The August 2016 median was 0.6 percent higher than the August 2015 median and 9.5 percent above the $52,424 median of August 2011, which was the low point in Sentier's household income series. 

"There has been a general upward trend in median household income since the post-recession low point reached in August 2011," reports Sentier. Its median household income estimates are derived from the Census Bureau's monthly Current Population Survey.

Median household income in August 2016 was 2.1 percent higher than the median of June 2009, which marked the end of the Great Recession. It was not significantly different from the median of December 2007, the start of the Great Recession. The August 2016 median was 0.9 percent below the median of January 2000. The Household Income Index for August was 99.1 (January 2000 = 100.0).

Source: Sentier Research, Household Income Trends: August 2016

Long-Term Job Decline

In 2016, one-third (33.8 percent) of employed men aged 25 or older had been with their current employer for 10 or more years, almost the same percentage as two decades earlier in 1996 (33.1 percent). By age group, however, things have changed. Long-term employment has declined for men of prime working age and increased among men aged 60-plus as older workers postpone retirement.

Percentage of men with current employer 10-plus years, 2016 
(and percentage point change 1996-2016)
Aged 25 to 29: 3.4% (+0.1)
Aged 30 to 34: 13.2% (–2.4)
Aged 35 to 39: 25.1%  (–5.4)
Aged 40 to 44: 34.8% (–6.9)
Aged 45 to 49: 44.4% (–6.4)
Aged 50 to 54: 50.4% (–4.5)
Aged 55 to 59: 53.4% (–2.3)
Aged 60 to 64: 55.5% (+5.1)
Aged 65-plus: 54.6% (+7.0)

Source: Bureau of Labor Statistics, Employee Tenure in 2016

New Survey of Alternative Workers

Every year the Bureau of Labor Statistics plumbs Current Population Survey data to estimate the number of self-employed American workers, and every year for many years that number has been declining. In 2015, only 6.4 percent of workers aged 16 or older were self-employed, down from 7.4 percent a decade earlier. Now two economists are calling that number—and the downward trend—into question. That's just one of the eyebrow-raising findings in a new survey of alternative work arrangements.

Apparently economists have been frustrated with the lack of an update for the Bureau of Labor Statistics' Contingent Worker Survey (CWS), last fielded in 2005. (Here is the Federal Reserve Bank of Boston's attempt to update the numbers earlier this year.) That's because so much has happened in the 10-plus years since the BLS last asked Americans about "gig" work, or what the BLS calls alternative work arrangements. So economists Lawrence F. Katz and Alan B. Krueger decided to do something about it. They fielded a version of the CWS as part of the RAND American Life Panel in 2015. Their goal was to determine the number of Americans aged 18 or older whose main job was independent contractor or freelancer (the self-employed), contract worker, on-call worker, or temporary help agency worker.

They found the motherlode—millions of workers and a rapidly growing workforce that may account for most of the nation's labor force growth over the decade. Fully 15.8 percent of workers in 2015 had an alternative work arrangement, up from 10.7 percent in 2005. The number of alternative workers grew from 15.0 million to 23.6 million during those years—a 57 percent increase. A comparison of alternative and traditional work force growth shows alternative workers increasing by 8.6 million between 2005 and 2015 and traditional workers increasing by just 0.5 million. Wow.

Which brings us back to that 6.4 percent (and falling) self-employment rate in Current Population Survey data. Katz and Krueger find a significantly larger 8.4 percent self-employment rate. IRS data backs up their claim of growing rather than shrinking numbers of self-employed. "Understanding the reasons underlying the divergent trends between the IRS and CPS data on self-employment should be a priority for future research," state the authors.

Much more information about alternative workers in 2015 is available in the NBER working paper, The Rise and Nature of Alternative Work Arrangements in the United States, 1995-2015, Working Paper 22667 ($5)

Who Shops for Groceries?

When asked whether they are the person in their household who usually does the grocery shopping, here's what men and women aged 18 or older reported...

Women
71.3% said yes
17.2% said no
11.5% said grocery shopping was split equally

Men
35.2% said yes
46.1% said no
18.7% said grocery shopping was split equally

Source: USDA Economic Research Service, Americans' Eating Patterns and Time Spent on Food: The 2014 Eating and Health Module Data

Fast Food Purchases in Past 7 Days

Among Americans aged 15 or older, the 58 percent majority purchased prepared food from a deli, carry-out, fast-food restaurant, or food delivery service in the past seven days. Here are the percentages by age...

Purchased fast food in past 7 days
Aged 15 to 17: 52.1%
Aged 18 to 24: 67.4%
Aged 25 to 64: 60.9%
Aged 65-plus: 42.3%

Source: USDA Economic Research Service, Americans' Eating Patterns and Time Spent on Food: The 2014 Eating and Health Module Data

11.1 Million Undocumented Immigrants

The number of undocumented immigrants in the United States has been stable for the past few years, according to a Pew Research Center analysis of American Community Survey data. In 2014, there were an estimated 11.1 million undocumented immigrants in the country, down from a peak of 12.2 million in 2007. Here are a few of the findings from Pew's comprehensive examination of the unauthorized immigrant population in 2014...

• Unauthorized immigrants have been in the U.S. a median of 13.6 years.
• Just over half are from Mexico (5.8 million). 
• The number of unauthorized immigrants from Mexico has fallen since peaking at 6.9 million in 2007, while the number from other countries has grown. 
• Unauthorized immigrants account for 26% of the nation's 43.6 million foreign-born.
• Most unauthorized immigrants live in six states: California, Texas, Florida, New York, New Jersey, and Illinois.

Source: Pew Research Center, Overall Number of U.S. Unauthorized Immigrants Holds Steady Since 2009

How Many Have Dementia?

Half of nursing home residents have Alzheimer's or dementia, according to a government report on long-term care. But most people with dementia live in their community. Overall, 10 percent of Medicare beneficiaries aged 65 or older who are not living in a nursing home have dementia. Here are the percentages by age...

Percent with dementia*
Aged 65 to 69: 3.6%
Aged 70 to 74: 4.8%
Aged 75 to 79: 9.9%
Aged 80 to 84: 15.3%
Aged 85 to 89: 24.0%
Aged 90-plus: 36.2%

* Among non-nursing home population
Source: Federal Interagency Forum on Aging-Related Statistics, Older Americans 2016: Key Indicators of Well-Being

Telephone Spending Trends, 2000 to 2015

The average household spent about as much on cell phone service in 2015 as it spent on landline service in 2000, after adjusting for inflation...

Cell phone service (in 2015 dollars)
$1,023 in 2015
   $164 in 2000

Landline service (in 2015 dollars)
   $324 in 2015
$1,043 in 2000

Source: Demo Memo analysis of the Consumer Expenditure Surveys

Median Household Income by State, 2015

Median household income varies greatly by state. Maryland has the highest median household income—36 percent above the national median of $55,775, according to the 2015 American Community Survey. Mississippi has the lowest—27 percent below the national median.

States with the highest median household income, 2015
$75,847 in Maryland
$75,628 in Washington, DC
$73,486 in Hawaii
$73,355 in Alaska
$72,222 in New Jersey

States with the lowest median household income, 2015
$45,215 in Kentucky
$44,765 in Alabama
$42,019 in West Virginia
$41,995 in Arkansas
$40,593 in Mississippi

Source: Census Bureau, 2015 American Community Survey

1 Million Fewer Married Couples with Children

The number of married couples with children under age 18 fell by 1 million between 2010 and 2016, according to Census Bureau data, the only household type to decline during those years. Behind the decline is the postponement of marriage and childbearing by young adults.

Married couples with children under age 18
2016: 25.1 million (20% of households)
2010: 26.1 million (22% of households)

Source: Census Bureau, Current Population Survey

Trust in Mass Media Has Plummeted

Americans' trust in the mass media has fallen to a new low, reports Gallup. From a high of 72 percent in 1976, the percentage of Americans who say they have a fair amount/great deal of trust in the mass media fell to just 32 percent in 2016. A major reason for the all-time low, says Gallup, is plummeting trust among Republicans...

Fair amount/great deal of trust in mass media in 2016 (and 2015)
Democrats: 51% (55%)
Independents: 30% (33%)
Republicans: 14% (32%)

Source: Gallup, Americans' Trust in Mass Media Sinks to New Low

Median Home Value Rises in 2015

Home values are rising, according to America's homeowners. The median value of owned homes climbed by a substantial 7.2 percent between 2014 and 2015, after adjusting for inflation. The nation's homeowners estimated their home's value to be a median of $194,500 in 2015, according to the American Community Survey. This is 10 percent more than the post-Great Recession low of $176,931 in 2013, but still 12 percent below the all-time high of $222,108 in 2007.

Median housing value, 2007 to 2015 (in 2015 dollars)
2015: $194,500
2014: $181,415
2013: $176,931
2012: $177,458
2011: $182,921
2010: $195,543
2009: $204,606
2008: $217,529
2007: $222,108

Source: Census Bureau, American Community Survey

Median Earnings of Women Hit All-Time High in 2015

The median earnings of women who work full-time reached an all-time high of $40,742 in 2015. In contrast, men's earnings peaked in 1973. Among full-time workers, women earned 80 percent as much as men in 2015, up from 57 percent in 1973.

Median earnings of men who work full-time (in 2015 dollars)
2015: $51,212
2014: $50,441
2007: $51,570
2000: $51,269
1973: $53,356 (peak year)

Median earnings of women who work full-time (in 2015 dollars)
2015: $40,742 (peak year)
2014: $39,667
2007: $40,126
2000: $37,796
1973: $30,217

Source: Census Bureau, Historical Income Tables: People

5.2% Increase in Median Household Income in 2015

After seven long years of decline and stagnation, median household income finally registered a statistically significant gain in 2015, and it was a big one. The $56,516 median household income of 2015 was a substantial 5.2 percent higher than the 2014 median, after adjusting for inflation. The gains were enjoyed by both young and old...

Median household income in 2015 (and % change 2014-15; in 2015 dollars)
Under age 25: $36,108 (4.2%)
Aged 25 to 34: $57,366 (5.6%)
Aged 35 to 44: $71,417 (7.0%)
Aged 45 to 54: $73,857 (4.2%)
Aged 55 to 64: $62,802 (3.5%)
Aged 65-plus: $38,515 (4.3%)

Source: Census Bureau, Income and Poverty in the United States: 2015

Decline in Nursing Home Residents

The number of nursing home residents has fallen steadily since 1997 as home health care and residential care options have expanded. Between 1997 and 2014, the number of nursing home residents fell 9 percent—despite a 26 percent increase in the 65-plus population and a 57 percent increase in the number of people aged 85-plus.

Fewer nursing home residents
2014: 1,369,000
2010: 1,396,000
2005: 1,436,000
2000: 1,480,000
1997: 1,503,000

Source: National Center for Health Statistics, Long-Term Care Providers and Services Users in the United States: Data from the National Study of Long-Term Care Providers, 2013-2014, and Health United States, 2015

Health Insurance by Region, 2016

Only 11.9 percent of adults aged 18 to 64 were without health insurance when interviewed by the National Health Interview Survey in January-March 2016. This is down from 20.4 percent in 2013, the year before implementation of the Affordable Care Act's health insurance exchanges. Health insurance coverage of working-age adults varies greatly by region...

Percent of 18-to-64-year-olds without health insurance, January-March 2016
  5.9% in New England states
  7.8% in East North Central states
  8.0% in Middle Atlantic states
  9.1% in West North Central states
10.7% in Pacific states
11.7% in East South Central states
12.2% in Mountain states
14.9% in South Atlantic states
24.2% in West South Central states

Source: National Center for Health Statistics, Health Insurance Coverage: Early Release of Estimates from the National Health Interview Survey, January-March 2016

The Food Dollar: 50% Devoted to Restaurants

When Americans buy food, they devote most of their budget to convenience, according to the USDA's Economic Research Service. Half of the average household's food budget is devoted to the most convenient food of all—restaurant meals. Another 26 percent is spent on ready-to-eat or ready-to-cook foods. Only 5 percent of the food dollar is spent on basic ingredients. Here's how the average American household allocates its food spending...

Distribution of household spending on food by food convenience type
Fast-food restaurants: 27 percent. Defined as meals and snacks at establishments where customers order and pay for food at a counter.
Sit-down restaurants: 23 percent. Defined as meals and snacks at establishments where customers order and pay for food from waitstaff.
Ready-to-eat food: 18 percent. Defined as meals and snacks intended to be consumed as is, requiring no preparation beyond opening a container such as yogurt, candy, flavored milk, etc.
Complex ingredients: 18 percent. Defined as processed food usually composed of multiple ingredients such as bread, pasta, lunch meat, cereal, etc.
Ready to cook food: 8 percent. Defined as meals and snacks that require minimal preparation involving heating, cooking, or adding hot water such as frozen pizza, pudding mixes, soup, etc.
Basic ingredients: 5 percent. Defined as raw or minimally processed food usually composed of a single ingredient such as milk, rice, butter, fresh meat, fruit, and vegetables.

Source: USDA, Economic Research Service, U.S. Households' Demand for Convenience Foods

Spending by Race and Hispanic Origin, 2015

Regardless of race or Hispanic origin, households spent more in 2015 than in 2014 after adjusting for inflation. The 2014–15 rise in average household spending was almost identical for Blacks, Hispanics, and non-Hispanic Whites (4.5 to 4.6 percent), while the increase for Asians was more muted (1.3 percent).

Average household spending is still below the 2006 peak, but Blacks and non-Hispanic Whites have almost closed the gap...

Average household spending in 2015 (and % change 2006–15; in 2015 dollars)
Average household: $55,978 (–1.6%)
Asian households: $63,672 (–5.9%)
Black households: $40,372 (–0.7%)
Hispanic households: $47,663 (–5.8%)
Non-Hispanic White households: $60,072 (–0.5%)

Source: Demo Memo analysis of Bureau of Labor Statistics, Consumer Expenditure Survey

Median Household Income Stable in July 2016

Last month Sentier Research played a leading role in a New York Times story about a potential rise in median household income after years of stagnation following the Great Recession. Sentier's monthly estimates have shown median household income to be significantly higher in 2015 than in 2014, after adjusting for inflation. Next week we will find out whether Sentier and the Times are right about this, when the Census Bureau releases the official 2015 income estimates.

Meanwhile, Sentier is halfway through 2016 with its median household income estimates, and the story is still positive. Median household income in July 2016 stood at $57,190. This was not significantly different from the June 2016 median, after adjusting for inflation, but it was 1.7 percent higher than the July 2015 median and 9.3 percent above the $52,320 median of August 2011—the low point in Sentier's household income series. 

"There has been a general upward trend in median household income since the post-recession low point reached in August 2011," reports Sentier. Its median household income estimates are derived from the Census Bureau's monthly Current Population Survey.

Median household income in July 2016 was 2.0 percent higher than the median of June 2009, which marked the end of the Great Recession. It was not significantly different from the median of December 2007, the start of the Great Recession. The July 2016 median was 1.1 percent below the median of January 2000. The Household Income Index for July was 98.9 (January 2000 = 100.0).

Source: Sentier Research, Household Income Trends: July 2016

Reading Books in 2016

Average household spending on books plummeted between 2010 and 2015, falling 41 percent after adjusting for inflation. But don't despair—reading books remains hugely popular, according to a Pew Research Center survey.  Fully 73 percent of Americans aged 18 or older read a book in the past year. Among all Americans (including nonreaders), the median number of books read in the past year is 4, and the average is 12.

Percent who read a book in the past 12 months
Any book: 73%
Print book: 65%
E-book: 28%
Audio book: 14%

Although young adults have a reputation for all things electronic, in fact they are far more likely to read a print book than an e-book. Among 18-to-29-year-olds, 72 percent read a print book in the past year and 35 percent read an e-book. Among people aged 65 or older, the figures are 61 and 19 percent, respectively.

Source: Pew Research Center, Book Reading 2016

Age Distribution of American Businesses

The Census Bureau's new Annual Survey of Entrepreneurs is a welcome addition to business statistics, providing more timely information on U.S. businesses and business owners. Rather than waiting for economic census updates every five years, the new survey will provide economic and demographic characteristics of businesses and their owners annually in the years between the economic census—thanks to a public-private partnership with the Census Bureau, the Ewing Marion Kauffman Foundation, and the Minority Business Development Agency. Data on the characteristics of businesses and the gender, ethnicity, and race of business owners are available for the nation, states, and 50 largest metropolitan areas.

U.S. firms with paid employees by age of firm, 2014
Total firms: 5,437,782 (100.0%)
Less than 2 years: 481,981 (8.9%)
2 to 3 years: 723,679 (13.3%)
4 to 5 years: 519,712 (9.6%)
6 to 10 years: 1,146,177 (21.1%)
11 to 15 years: 2,398,315 (44.1%)
16 or more years: 167,917 (3.1%)

Source: Census Bureau, Annual Survey of Entrepreneurs

Households Give Thumbs Up to Economy in 2015

The Feds may be uncertain about the direction of the economy, but Americans are giving it a thumbs up. The average household boosted its spending on a wide variety of products and services between 2014 and 2015, after adjusting for inflation. Many long-languishing discretionary categories (apparel, furniture, etc.) got a welcome infusion of cash, while some necessities (gasoline, electricity, etc.) eased their grip on the household budget...

Spending gains, 2014-15 (in 2015 dollars)
Furniture: 29.6%
New cars and trucks: 25.1%
Alcoholic beverages: 11.1%
Reading material: 10.5%
Women's clothes: 8.0%
Food away from home: 7.8%
Entertainment: 4.1%

Spending declines, 2014-15 (in 2015 dollars)
Gasoline: –15.4%
Drugs: –12.7%
Natural gas: –4.2%
Mortgage interest: –3.3%
Vehicle insurance: –3.1%
Electricity: –1.7%

Source: Demo Memo analysis of Bureau of Labor Statistics, Consumer Expenditure Survey