Colorado Income Declines

Colorado Income Declines

National incomes discussed by WSJ at http://blogs.wsj.com/economics/2010/08/09/us-incomes-tumbled-in-2009/?mod=e2tw.

Here are pieces that jumped out to me:

  • From 2008 to 2009, average national income dropped 2.8%.
  • In the Denver metro area, it dropped 4.2% (150% national avg).
  • In Boulder, it dropped 5.1% (180% national average).
  • The highest growing income was in Jacksonville, NC – 11.9% increase.

These numbers made me pause and rethink the state of Colorado’s finances.  In 2007, I kept hearing that Colorado was in a ‘bubble’ of stability and was not affected as badly as the rest of the country by the recession.  I wonder….was it just a lag?  Are we (Colorado) about to feel the recession effects in our own backyard?

This is what I know from my own life:

Signs that CO’s economy is worsening

  • My husband lost his job in May (construction).
  • Our across the street neighbor lost his job February of 2009.
  • Three of the women I work with (of 50) are now working full-time because their husbands were laid off within the past 6 months.
  • We did not give raises this past year out of concern for cash flow in 2010.

Signs CO’s economy is recovering

  • We hired 4 new positions in the past 9 months.
  • Our backlog (signed contracts for upcoming work) is higher than it’s been in 3 years.
  • We bid some construction jobs and the number of contractors at pre-bid meetings is about 1/2 what it was 2 years ago.

So what do you think?  On the rise? Or about to decline?  Any signs in your own life that give support one way or the other?

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