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 counties.

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 county 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 Davis County's annual total industry earnings over 1970-2020 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 Davis County over time.

When measured in current dollars, Davis County's total industry earnings increased 2,870.9%, from $363M in 1970 to $10,787M in 2020. When measured in constant 2012 dollars to adjust for inflation, it advanced 458.5%, from $1,736M in 1970 to $9,699M in 2020.

Figure 2 tracks Davis County's and Utah's annual real total industry earnings for the period 1969-2020 to illustrate real total industry earnings patterns over time. During this 52-year period, Davis County's real total industry earnings rose from $1,635M in 1969 to $9,699M in 2020, for a net gain of $8,064M, or 493.2%. In comparison, Utah's real total industry earnings increased from $14,141M in 1969 to $110,950M in 2020, for a net gain of $96,809M, or 684.6%.

Figure 3 shows Davis County's real total industry earnings growth in a broader context by offering direct comparisons across time with Utah, the United States. The growth indices shown here express each region's real total industry earnings in 1969 as a base figure of 100, and the real total industry earningss in later years as a percentage of the 1969 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.

Davis County's overall real total industry earnings growth was 493.2% over 1969-2020 trailed Utah's increase of 684.6%, and outpaced the United States' increase of 262.7%.

Another interesting and insightful way of highlighting the total industry earnings growth of Davis County is to trace its individual percentage contributions to Utah's statewide total industry earnings over time, as shown in Figure 4. A rising share means a region's total industry earnings grew faster, or declined less, than Utah's total industry earnings, while a declining share shows it grew more slowly.

In 1969, Davis County's total industry earnings totaled 11.6% of Utah's total industry earnings, while in 2020 it totaled 8.7% thereby yielding a -2.8% share-shift.

Figure 5 displays the short-run pattern of Davis County's real total industry earnings growth by tracking the year-to-year percent change over 1970-2020. The average annual percent change for the entire 51-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, Davis County's real total industry earnings grew at an annual rate of 3.60% over 1970-2020. The county recorded its highest growth in 1971 (17.40%) and recorded its lowest growth in 1987 (-3.83%). In 2020, Davis County's real total industry earnings grew by 6.49%

Over the past five decades some counties 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 Davis County's real total industry earnings since 1970, but this time they are overlayed with average growth rates for the decade of the 1970s, 1980s, 1990s, 2000s, and 2020.

During the 1970s, Davis County's annual real total industry earnings growth rate averaged 4.28%. It averaged 2.12% during the 1980s, 3.65% throughout the 1990s, 3.61% throughout the 2000s, 4.09% in the 2010s, and 6.49% in 2020.

Figure 7 compares the decade average growth rates for Davis County noted in the previous graph with the corresponding decade averages for Utah and the nation. As the chart reveals, Davis County's average annual real total industry earnings growth posted below Utah's average during the 1970s (4.28% vs. 5.55%), trailed Utah's average in the 1980s (2.12% vs. 2.51%), posted below Utah's average during the 1990s (3.65% vs. 5.74%), outperformed Utah's average in the 2000s (3.61% vs. 2.63%), and trailed Utah's average over the 10 year period of the last decade, 2010-2019 (4.09% vs. 4.29%). In 2020, Davis County's growth has surpassed Utah's average (6.49% vs. 4.74%).

Finally, relative to nationwide real total industry earnings growth trends, Davis County exceeded the nation throughout the 1970s (4.28% vs. 3.13%), fell below the nation over the 1980s (2.12% vs. 2.62%), exceeded the nation over the 1990s (3.65% vs. 3.43%), topped the nation over the 2000s (3.61% vs. 1.47%), and recorded above the nation over 2010-2019 (4.09% vs. 2.52%). In 2020, growth for Davis County has outgained the national average (6.49% vs. 0.18%).