Industry earnings are incomes received by people who are directly involved with producing goods and services. Earnings, referred to also as "labor and proprietors income", include (1) wage and salary disbursements, (2) other labor income such as employer contributions to private retirement and medical insurance programs, and (3) the net incomes of proprietors (i.e., the owners of unincorporated enterprises).

In contrast to the more frequently cited employment data, earnings data more accurately reflect qualitative differences in labor's contributions toward the production of goods and services, namely the productivity differences reflected in variations in earnings per job. Earnings data, therefore, are better for comparing and tracking long-term trends and identifying short-run shifts in the level and composition of economic activity within and among states.

Just like the employment data compiled by BEA, earnings data are reported on a place-of-work, or more accurately on a place-where-earned, basis.

Note: the BEA earnings data presented and discussed here in the context of comparing and assessing the economic growth and performance of state and regional economies are entirely separate and apart from--and should not be confused with--corporate earnings, which are compiled from the balance sheets of individual private corporations.

Figure 1 depicts Oregon's annual total industry earnings over 1958-2018 in current and constant (2012) dollars. Constant dollar measurements remove the effects of inflation. They allow for comparison of changes in the real purchasing power of Oregon over time.

When measured in current dollars, Oregon's total industry earnings increased 4,829.4%, from $3,057M in 1958 to $150,672M in 2018. When measured in constant 2012 dollars to adjust for inflation, it advanced 627.9%, from $19,141M in 1958 to $139,327M in 2018.

Figure 2 tracks Oregon's and Arizona's annual real total industry earnings for the period 1958-2018 to illustrate real total industry earnings patterns over time. During this 61-year period, Oregon's real total industry earnings rose from $19,141M in 1958 to $139,327M in 2018, for a net gain of $120,186M, or 627.9%. In comparison, Arizona's real total industry earnings advanced from $12,193M in 1958 to $197,178M in 2018, for a net advance of $184,985M, or 1,517.1%. Oregon's real total industry earnings ranked 24th among the 51 states in 2018, Arizona's ranked 20th.

Figure 3 shows Oregon's real total industry earnings growth in a broader context by offering direct comparisons across time with Arizona, the United States. The growth indices shown here express each region's real total industry earnings in 1958 as a base figure of 100, and the real total industry earningss in later years as a percentage of the 1958 base figure. This method allows for more direct comparison of differences in real total industry earnings growth between regions that may differ vastly in size.

Oregon's overall real total industry earnings growth was 627.9% over 1958-2018 trailed Arizona's increase of 1,517.1%, and topped the United States' increase of 491.3%.

Another interesting and insightful way of comparing the total industry earnings growth of Oregon and Arizona is to compare their individual percentage contributions to the United States' total total industry earnings over time, as shown in Figure 4. A rising share means a state's total industry earnings grew faster, or declined less, than the United States' total industry earnings, while a declining share shows they grew more slowly.

In 1958, Oregon's total industry earnings comprised 0.98% of the United States' total industry earnings, while in 2018 it equated to 1.20% thereby yielding a +0.23% share-shift. Similarly, in 1958, Arizona's total industry earnings made up 0.62% of the United States' total industry earnings, while in 2018 it equated to 1.70%, resulting in a +1.08% share-shift.

Figure 5 displays the short-run pattern of Oregon's real total industry earnings growth by tracking the year-to-year percent change over 1959-2018. The average annual percent change for the entire 60-year period is also traced on this chart to provide a benchmark for gauging periods of relative high--and relative low--growth against the backdrop of the long-term average.

On average, Oregon's real total industry earnings grew at an annual rate of 3.42% over 1959-2018. The state posted its highest growth in 1972 (9.54%) and recorded its lowest growth in 1982 (-6.18%). In 2018, Oregon's real total industry earnings grew by 3.13%

Over the past six decades some states have experienced extreme swings in growth, and often such swings have tended to coincide with the decades themselves. Figure 6 again depicts the annual percent change in Oregon's real total industry earnings since 1959, but this time they are overlayed with average growth rates for the decade of the 1960s, 1970s, 1980s, 1990s, 2000s, and 2010-2018.

During the 1960s, Oregon's annual real total industry earnings growth rate averaged 4.57%. It averaged 4.96% throughout the 1970s, 1.29% during the 1980s, 4.66% throughout the 1990s, 1.22% during the 2000s, and 3.35% thus far this decade (2010 to 2018).

Figure 7 compares the decade average growth rates for Oregon noted in the previous graph with the corresponding decade averages for Arizona and the nation. As the chart reveals, Oregon's average annual real total industry earnings growth fell below Arizona's average in the 1960s (4.57% vs. 6.55%), fell below Arizona's average during the 1970s (4.96% vs. 6.66%), lagged Arizona's average throughout the 1980s (1.29% vs. 4.10%), lagged Arizona's average throughout the 1990s (4.66% vs. 5.70%), trailed Arizona's average during the 2000s (1.22% vs. 2.62%), and recorded above Arizona's average over the 9 year period of the last decade, 2010-2018 (3.35% vs. 2.75%).

Finally, relative to nationwide real total industry earnings growth trends, Oregon lagged the nation during the 1960s (4.57% vs. 4.72%), registered above the nation during the 1970s (4.96% vs. 3.13%), fell under the nation throughout the 1980s (1.29% vs. 2.62%), surpassed the nation during the 1990s (4.66% vs. 3.43%), posted below the nation in the 2000s (1.22% vs. 1.49%), and outpaced the nation over 2010-2018 (3.35% vs. 2.54%).