Average Nonfarm Proprietors' Income
Description:
For those members of the workforce who do not work in wage and salary jobs—including sole proprietorships, partnerships, and tax-exempt cooperatives—the average proprietors’ income is the counterpart to the average wage as a measure of individual economic well-being. Average proprietors’ income is calculated from proprietors’ income and the number of proprietors. Because the income of farm proprietors is highly volatile from year to year, data are displayed on Arizona Indicators only for nonfarm proprietors and their income.
The latest current dollar average nonfarm proprietors’ income figure by county is presented on Arizona Indicators, along with data for the same year for the United States, the U.S. metro average, the U.S. nonmetro average, and Arizona. The figure for Arizona also is expressed as a percentage of the national average. Counties within a metropolitan area are presented as a percentage of the U.S. metro average; the remaining counties are compared to the national nonmetro average. A history of Arizona’s current dollar figure as a percentage of the national average is presented back to 1969. In addition, the inflation-adjusted percent change in average nonfarm proprietors’ income is displayed for each area, beginning with 1970. The data are inflation adjusted using the gross domestic product implicit price deflator (GDP deflator).
Data Source:
Annual data are from the U. S. Department of Commerce, Bureau of Economic Analysis. State and national data are reported nine months after the end of a year. The data can be accessed from http://www.bea.gov/regional/spi/; the income of nonfarm proprietors are included in table SA04, but the number of nonfarm proprietors must be obtained from table SA25. County data are released 16 months after the end of a year, accessible at http://www.bea.gov/regional/reis/; the income of nonfarm proprietors are included in table CA04, but the number of nonfarm proprietors must be obtained from table CA25.
The GDP deflator is available from the U.S. Department of Commerce, Bureau of Economic Analysis: http://www.bea.gov/national/nipaweb/SelectTable.asp?Selected=Y (Table 1.1.9).
Data Quality Comments:
Some of the inputs to the calculation of proprietors’ income by state and county are estimated. The number of proprietors also is estimated. Some proprietors work either more or less than 40 hours per week, but the average does not adjust for the number of hours worked.
Average Nonfarm Proprietors' Income, 2009
Visualization Notes:
Reasonable targets for Arizona are for the state’s average nonfarm proprietors’ income to be within 5 percent of the national average, for the larger metro counties to have a figure within 5 percent of the U.S. metro average, and for the nonmetro counties to have a figure within 5 percent of the nonmetro average.
The most recent data for average nonfarm proprietors’ income by county are for 2009, a recessionary year. These estimates remain subject to revision. The preliminary data indicate that average nonfarm proprietors’ income in 2009 was below the U.S. metro average in each of the state’s seven metropolitan counties. In two of the eight nonmetro counties, the figure exceeded the U.S. nonmetro average.
Average Nonfarm Proprietors' Income as Percentages of the National Averages, 2009
Visualization Notes:
Among Arizona’s seven metropolitan counties, average nonfarm proprietors’ income in 2009 was 9-to-11 percent below the U.S. metro average in Yuma County and in Maricopa County. In the other metro counties, the figure ranged from 36 percent to 58 percent below the metro average. Among the eight nonmetro counties, La Paz and Santa Cruz counties had a figure above the U.S. nonmetro average. However, average nonfarm proprietors’ income ranged from 8-to-39 percent below the nonmetro average in the other nonmetro counties.
Average Nonfarm Proprietors’ Income in Arizona as a Percentage of the National Average
Visualization Notes:
A reasonable target is for Arizona’s average nonfarm proprietors’ income to be within 5 percent of the national average. This was the case in 1969 and 1970. After the early 1970s, average nonfarm proprietors’ income in Arizona fell precipitously relative to the national average, bottoming out at 45 percent below average in 1990. The percentage of the national average bounced back during the 1990s, but has been lower than the 2001 and 2002 figures since then. The 2010 figure was 13.4 percent less than the national average.
Average Nonfarm Proprietors' Income, Inflation-Adjusted Percent Change
Visualization Notes:
The inflation-adjusted percent change in average nonfarm proprietors’ income is somewhat inconsistent nationally, but declines typically occur during recessions while gains usually occur during expansions. The annual percent change in Arizona has been erratic relative to the national average. Substantial decreases occurred nationally and in Arizona between 2006 and 2009, with the losses in Arizona worse than the national average in 2007 and 2008. A recovery began in 2010.
Data Source
Annual data are from the U. S. Department of Commerce, Bureau of Economic Analysis. State and national data are reported nine months after the end of a year. The data can be accessed from http://www.bea.gov/regional/spi/; the income of nonfarm proprietors are included in table SA04, but the number of nonfarm proprietors must be obtained from table SA25. County data are released 16 months after the end of a year, accessible at http://www.bea.gov/regional/reis/; the income of nonfarm proprietors are included in table CA04, but the number of nonfarm proprietors must be obtained from table CA25.
The GDP deflator is available from the U.S. Department of Commerce, Bureau of Economic Analysis: http://www.bea.gov/national/nipaweb/SelectTable.asp?Selected=Y (Table 1.1.9).
Explore 
Download 
Download 
