Cheshire County vs. New Hampshire Comparative Trends Analysis: Total Industry Earnings Growth and Change, 1969-2022 Introduction Cheshire County: 2022 Earnings = $2,893,725K 2022 Percent of State = 4.09% New Hampshire: 2022 Earnings = $70,795,485K 2022 Percent of U.S. = 0.47% Industry earnings are incomes received by people who are directly involved with producing goods and services. Earnings, referred to also as "labor and proprietors income", include (1) wage and salary disbursements, (2) other labor income such as employer contributions to private retirement and medical insurance programs, and (3) the net incomes of proprietors (i.e., the owners of unincorporated enterprises). In contrast to the more frequently cited employment data, earnings data more accurately reflect qualitative differences in labor's contributions toward the production of goods and services, namely the productivity differences reflected in variations in earnings per job. Earnings data, therefore, are better for comparing and tracking long-term trends and identifying short-run shifts in the level and composition of economic activity within and among counties. Just like the employment data compiled by BEA, earnings data are reported on a place-of-work, or more accurately on a place-where-earned, basis. Note: the BEA earnings data presented and discussed here in the context of comparing and assessing the economic growth and performance of county and regional economies are entirely separate and apart from--and should not be confused with--corporate earnings, which are compiled from the balance sheets of individual private corporations. Cheshire County Total Industry Earnings, 1970-2022 Current vs. Constant Dollars (Millions) Figure 1. Figure 1 depicts Cheshire County's annual total industry earnings over 1970-2022 in current and constant (2017) dollars. Constant dollar measurements remove the effects of inflation. They allow for comparison of changes in the real purchasing power of Cheshire County over time. When measured in current dollars, Cheshire County's total industry earnings increased 1,903.06%, from $144M in 1970 to $2,894M in 2022. When measured in constant 2017 dollars to adjust for inflation, it advanced 241.19%, from $731M in 1970 to $2,494M in 2022. Real Total Industry Earnings, 1969-2022 (Millions) Figure 2. Figure 2 traces Cheshire County's and New Hampshire's annual real total industry earnings for the period 1969-2022 to illustrate real total industry earnings patterns over time. During this 54-year period, Cheshire County's real total industry earnings rose from $742M in 1969 to $2,494M in 2022, for a net gain of $1,752M, or 236.09%. In comparison, New Hampshire's real total industry earnings advanced from $10,717M in 1969 to $61,008M in 2022, for a net gain of $50,291M, or 469.26%. Real Total Industry Earnings Indices (1969=100): 1969-2022 Figure 3. Figure 3 shows Cheshire County's real total industry earnings growth in a broader context by offering direct comparisons across time with New Hampshire, the United States. The growth indices shown here express each region's real total industry earnings in 1969 as a base figure of 100, and the real total industry earningss in later years as a percentage of the 1969 base figure. This method allows for more direct comparison of differences in real total industry earnings growth between regions that may differ vastly in size. Cheshire County's overall real total industry earnings growth was 236.09% over 1969-2022 trailed New Hampshire's increase of 469.26%, and fell below the United States' increase of 278.59%. Total Industry Earnings as a Percent of the New Hampshire Total: 1969-2022 Figure 4. Another interesting and insightful way of contrasting the total industry earnings growth of Cheshire County is to trace its individual percentage contributions to New Hampshire's statewide total industry earnings over time, as shown in Figure 4. A rising share means a region's total industry earnings grew faster, or declined less, than New Hampshire's total industry earnings, while a declining share shows it grew more slowly. In 1969, Cheshire County's total industry earnings totaled 6.92% of New Hampshire's total industry earnings, while in 2022 it comprised 4.09% thereby yielding a -2.84% share-shift.
Cheshire County Real Total Industry Earnings: Annual Percent Change, 1970-2022 Figure 5. Figure 5 shows the short-run pattern of Cheshire County's real total industry earnings growth by tracking the year-to-year percent change over 1970-2022. The average annual percent change for the entire 53-year period is also traced on this chart to provide a benchmark for gauging periods of relative high--and relative low--growth against the backdrop of the long-term average. On average, Cheshire County's real total industry earnings grew at an annual rate of 2.41% over 1970-2022. The county posted its highest growth in 2021 (12.79%) and posted its lowest growth in 2022 (-7.81%). In 2022, Cheshire County's real total industry earnings declined by -7.81% Cheshire County Real Total Industry Earnings: Annual Percent Change and Decade Averages Over 1970-2022 Figure 6. Over the past five decades some counties have experienced extreme swings in growth, and often such swings have tended to coincide with the decades themselves. Figure 6 again traces the annual percent change in Cheshire County's real total industry earnings since 1970, but this time they are overlayed with average growth rates for the decade of the 1970s, 1980s, 1990s, 2000s, 2010s, and 2020-2022. During the 1970s, Cheshire County's annual real total industry earnings growth rate averaged 2.97%. It averaged 4.27% throughout the 1980s, 2.54% in the 1990s, 1.87% throughout the 2000s, 0.01% during the 2010s, 3.66% thus far this decade (2020-2022). Real Total Industry Earnings Growth: Average Annual Percent Change by Decade Figure 7. Figure 7 compares the decade average growth rates for Cheshire County noted in the previous graph with the corresponding decade averages for New Hampshire and the nation. As the chart reveals, Cheshire County's average annual real total industry earnings growth amounted to less than New Hampshire's average in the 1970s (2.97% vs. 4.40%), lagged New Hampshire's average during the 1980s (4.27% vs. 5.41%), trailed New Hampshire's average during the 1990s (2.54% vs. 3.50%), lagged New Hampshire's average in the 2000s (1.87% vs. 2.04%), posted below New Hampshire's average in the 2010s (0.01% vs. 1.86%), and led New Hampshire's average over the 3 year period of the current decade, 2020-2022 (3.66% vs. 2.87%). Finally, relative to nationwide real total industry earnings growth trends, Cheshire County recorded underneath the nation during the 1970s (2.97% vs. 3.13%), led the nation throughout the 1980s (4.27% vs. 2.62%), recorded underneath the nation in the 1990s (2.54% vs. 3.43%), topped the nation during the 2000s (1.87% vs. 1.47%), fell below the nation in the 2010s (0.01% vs. 2.53%), and outpaced the nation over 2020-2022 (3.66% vs. 1.48%).
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