Household Income In Illinois Fell During Pandemic: See New Data

ILLINOIS — The average family in Illinois made about $1,100 less per year in 2021 than it did prior to the COVID-19 pandemic, according to a new report from the Census Bureau.

Nationally, median household income remained about the same in 2021 versus pre-pandemic 2019, increasing a meager $78 to $69,717, according to American Community Survey responses. The last time median household income flatlined or went down was in 2013.

At the same time, the so-called “Gini index,” which measures wealth and income inequality, increased by 0.8 percent nationally. The wealth gap also widened in 21 states and the District of Columbia.

Survey responses from 2020 were thrown out of the comparison. Responses were down during pandemic disruptions, and those who did respond had statistically different social, economic, and housing situations than those who did, leading to “unreasonable estimates,” the Census Bureau said.

Illinois was not among 10 that bucked the national trend with statistically significant increases in household income as the average family saw its income drop by 1.5 percent in 2021 compared to the 0.1 percent increase in median income that was reported nationally.

The median household income in Illinois was $72,205 in 2021, compared with $73,322 in 2019.

The Gini index in Illinois increased by less than 1 percent over the past two years, going from 0.003 in 2019 to 0.004 in 2021.

In the greater Chicago area, the median household income also fell slightly over the past year, going from $79,884 in 2019 to $78,166 in 2021, the data indicated.

Importantly, the report looks at median rather than average income. The median is the middle point in the data set that includes income distribution above and below it, including those without income.

The Gini index ranges from 0 to 1, with 0 representing perfect equality with a proportional distribution of income, and 1 representing perfect inequality, according to the report.

Some other findings:

• White, Asian, and Hispanic households saw the greatest increase in median household income between 2019 and 2021. Income remained about the same in Black households.
• Households headed by householders aged 25 to 44 experienced an increase in median household income between 2019 and 2021 while households maintained by householders 65 years and older experienced a decrease.
• The other age groups saw no significant change in median household income.