Income is a foundational metric for assessing the economic health of Idaho’s households and workers across time, making geographic comparisons and directly comparing household income flows to expenses. However, income data can often be confusing, because it is provided by various official agencies using different methods.
Defining key terms
Important data related to income is published by the U.S. Census Bureau, the U.S. Bureau of Economic Analysis and the U.S. Bureau of Labor Statistics. Broadly speaking, the data from these three agencies varies by source, estimation basis and their definition of income (Figure 1).
“Source” refers simply to the agency’s method of data collection and can be grouped into two categories: surveys and administrative data. Surveys estimate data from a limited sample of business or households, while administrative data refers to comprehensive data extracted from government records, generally tax data.
The “estimation basis” for an agency’s income data refers to whether the income is presented as a per-worker average, a per-capita measure (which is the average across the entire population, including non-working individuals like children) or a per-household measure.
Finally, an agency’s “income measure” can vary in inclusivity, with some data sets including only wage and salary-related income, while others include non-wage income like social security.
Figure 1. Measures of income and earnings in Idaho, 2024
Sources: U.S. Census Bureau American Community Survey, U.S. Bureau of Economic Analysis Regional GDP & Personal Income, U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages and Current Employment Statistics, Idaho Department of Labor Occupational Employment and Wage Survey
Total covered payroll data
The Bureau of Labor Statistics’ income data, particularly the Quarterly Census of Employment and Wages (a data product of the Idaho Department of Labor) is derived from the administrative data of the unemployment insurance system.
This provides an important data series which tracks the total covered payrolls in Idaho – that is, the total of all the wages and salaries paid out in the state which are covered in the unemployment insurance system. This accounts for roughly 95% of all wage and salary employment.
Total payroll data is a critical indicator of Idaho’s economic health and labor market strength, and has showed strong growth in recent years, with the rate of growth accelerating significantly beginning in 2021, as shown in Figure 2 below.
Figure 2. Total covered payrolls in Idaho
Source: U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages
While covered payroll data (wages and salaries) is extremely valuable for gauging labor market strength and economic vitality, it accounts for less than 40% of all income in Idaho.
Total income data
Unlike covered payrolls, the Bureau of Economic Analysis’s measure of total income comes from a variety of databases that are not subject to the unemployment insurance system, like proprietor income (including self-employed income); investment income like dividends, interest and rents; and transfer payments.
As shown in Figure 3 below, the composition of total income in Idaho has shifted significantly over time, as a result of changing demographics and the aging population. In 1970, 75% of all income in Idaho was derived from earned income in the form of wages, salaries and proprietor income. This share has fallen steadily, and in 2024 it was just 57%, with many Idaho counties deriving less than half of their total income from earned income.
In contrast, the share of total income derived from investments (dividends, interest and rents) as well as transfer payments has increased steadily. These are income streams that are traditionally associated with older individuals and particularly transfer payments which include Social Security and Medicare benefits.
Figure 3. Share of total income in Idaho by origin, 1970-2024
Source: U.S. Bureau of Economic Analysis Regional GDP and Personal Income
As the population has aged, with a large and rapidly growing retiree population, the prominence of these income origins has grown relative to wage and salary income. Perhaps unsurprisingly, Idaho’s oldest counties show the highest dependence on non-wage income.
For example, several of Idaho’s more affluent counties, including Blaine and Valley counties (which include the resort communities of Sun Valley and McCall) show a relatively high preponderance of investment income, while urban counties (which tend to be relatively young) show a continued predominance of wage and salary income.
While total income provides a comprehensive gauge of personal income, it includes many income origins that are not directly related to the strength of the labor market and therefore cannot be used to assess that strength.
Household income data
The measures of income from the Bureau of Labor Statistics and the Bureau of Economic Analysis vary significantly from the U.S. Census Bureau’s survey-derived estimates of household income.
Households are defined by the census as all persons occupying a single housing unit. This implies enormous variability in household sizes, because a single person living alone, a cohabitating couple and a large number of unrelated roommates living together are all defined as single households.
Due to their differing nature, households may seem to form a more uneven basis for assessing income than simple per-capita or per-worker estimates. However, since households, rather than individuals, are responsible for the payment of their housing unit, household income plays an essential role in assessing economic health.
Housing is considered affordable if it costs no more than 30% of a household’s gross income, including rent or mortgage payments plus utilities. This 30% threshold is a critical analytical benchmark utilized by agencies like the Department of Housing and Urban Development, as well as the census, and it is rated specifically against household, rather than per-capita, income.
The gap in the growth rates of home prices and household income are the basis for ongoing concerns related to housing affordability in Idaho. Since the start of 2017, median household income has grown by 60%. While this is substantial growth, it has been more than offset by the rise in home prices, which have more than doubled in the same period, as shown in Figure 4 below.
Figure 4. Net growth of median household income and median home prices in Idaho, 2017-2026
Source: U.S. Census Bureau, U.S. Association of Realtors
Conclusion
Income as a subject of study appears at first glance to be relatively intuitive, but it is surprisingly complex and difficult to define simply. In the complex modern economy, income takes on many forms, ranging from traditional wage and salary income to dividends, interest, royalties, rents and the many sources of transfer payments. Both the range of income included and the basis for estimation (be it per household, per worker or per-capita) can radically change both the data and its suitable purposes.
Payroll data (wages and salaries) provides a gauge of labor market strength, while more expansive total income data showcases the texture of the economy and the relative importance of different income streams. Additionally, household measures of income also provide valuable insight into the economy as poverty and housing affordability are legally defined by these metrics. Understanding the nuances and appropriate applications of the different income data available can help Idahoans better understand their communities.
Samuel.Wolkenhauer@labor.idaho.gov, research analyst supervisor
Idaho Department of Labor
208-696-2353
This project is 100% funded by the U.S. Department of Labor for SFY2026 as part of the Workforce Information Grant (41%) and state/nonfederal funds (59%) totaling $860,595.
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