What Percentage of Personal Income Comes From Private Pay?

If you had to guess what percentage of Americans' personal income would you say comes from wages paid by private employers?  75%?  60%?  50%?  The answer, my friends, is 41.9%.  That's a record low, and to me it's an amazing number.  From the USA Today article:

Key shifts in income this year:

Private wages. A record-low 41.9% of the nation's personal income came from private wages and salaries in the first quarter, down from 44.6% when the recession began in December 2007.

Government benefits. Individuals got 17.9% of their income from government programs in the first quarter, up from 14.2% when the recession started. Programs for the elderly, the poor and the unemployed all grew in cost and importance. An additional 9.8% of personal income was paid as wages to government employees.

Okay, I have a question that I'm hoping someone smarter than me and with more time to do research can answer: If about 42% of personal income comes from pay and about 28% comes from government programs/wages, then where does the other 30% come from?  I can think of medical benefits and interest on investments, but my little pea brain can't come up with anything else.

h/t to Fec for the link.


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3 thoughts on “What Percentage of Personal Income Comes From Private Pay?

  1. Lori's avatarLori

    The “third” sector–nonprofits? Not sure if private nonprofits (vs corporations) are included under private wages.

    Reply

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