Americans’ median household income grew less than 3% — about $2,150 — during the Biden administration, according to new Census Bureau figures released Tuesday.
Former President Joe Biden faced the fallout from the Covid-19 pandemic and high inflation. Adjusted for inflation, median household income didn’t return to its pre-pandemic peak until 2023. Last year, it held flat at $83,730.
“Household income and earnings kept pace with inflation,” said Liana Fox, assistant division chief at the Census Bureau. “It’s a story of stability, but not necessarily growth, except at the top end of the income distribution.”
Who Benefited Most
The top 10% of households saw incomes climb by just over 4% in 2024, while the bottom 10% saw little to no change. Gender differences were also notable: men’s median earnings rose 3.7%, but women’s earnings were essentially flat, widening the pay gap.
The poverty rate declined slightly to 10.6% last year, leaving 35.9 million people in poverty. Black households had a mixed outcome, with median income dropping more than 3% even though full-time workers’ pay remained unchanged. Hispanic and Asian households experienced stronger gains, with median income rising over 5% for both groups, while White households showed little change but did see some improvement in poverty levels.
Health Care Coverage
The uninsured rate stayed near historic lows at 8%. Medicaid enrollment, however, declined from 18.9% in 2023 to 17.6% last year, following the expiration of pandemic-era protections. Job-based health coverage remained steady.
Economists warn that slower wage growth and a cooling labor market could weigh on households this year. Employers have become more cautious with hiring decisions, influenced in part by uncertainty around President Donald Trump’s tariffs and immigration policy.
Author’s Opinion
The Census data paints a picture of stability but hides deeper imbalances. Income gains flowed mostly to the wealthy and to certain racial groups, while women and Black households slipped further behind. The small dip in poverty is welcome, but if wages continue to soften and trade policies remain unpredictable, the divide between who benefits and who stagnates may grow sharper in 2025.
Featured image credit: World Economic Forum via Flickr
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