The latest data from the Census Bureau reveals that the inflation-adjusted median income of U.S. households saw a significant rebound in 2023, reaching nearly the same level as in 2019. This increase has helped restore most Americans' purchasing power despite facing the largest price spike in four decades.
In 2023, the median household income, adjusted for inflation, rose by 4% to $80,610, up from $77,450 in 2022. This marks the first increase since 2019 and is almost on par with the 2019 figure of $81,210. The Census Bureau noted that this median income figure represents the point at which half the population is above and half below, providing a more balanced view compared to average income calculations.
Additionally, the proportion of Americans living in poverty slightly decreased to 11.1% in 2023, down from 11.5% in the previous year. However, the report highlighted a concerning trend as the ratio of women's median earnings to men's widened for the first time in over two decades, with men's income outpacing women's in 2023.
Liana Fox, assistant division chief at the Census Bureau, expressed optimism about the findings, stating, 'We are back to that pre-COVID peak that we experienced.' The data could potentially become a focal point in the upcoming presidential campaign, with discussions around Americans' financial well-being and comparisons between different administrations.
It is worth noting that household income growth was faster during the first three years of the previous administration, although income levels declined following the onset of the pandemic in 2020. The latest figures provide a snapshot of the economic landscape in the U.S. and offer insights into the ongoing recovery and resilience of American households.
