hat these states have in common is that their decline in federal pandemic transfer payments exceeded their growth in wages and business income. The opposite was true in the fastest-growing states, including Florida (4.7%), Arizona (4.9%), Texas (5%), Utah (5.5%), Colorado (5.8%), South Dakota (5.8%), Montana (6.1%), Idaho (6.5%), North Dakota (7%), and Delaware (8.8%).
In California, wages and salaries increased by $69.4 billion while Covid transfer payments declined $122.4 billion, including $65.7 billion from expiring enhanced unemployment benefits. Every new job that was added in California last year yielded only a $2,700 net increase in personal income since many workers had earned nearly as much unemployed.
Wages and salaries in Illinois rose $32.8 billion last year, but were offset by a $36.2 billion reduction in Covid transfer payments, including $14.2 billion in jobless benefits and $21.3 billion in stimulus payments. In New York, wages and salaries increased by $57 billion, but pandemic handouts declined by $75.7 billion.