Following four straight quarters of growth, household income dropped in the third quarter of 2023, according to new data from the Organisation for Economic Cooperation and Development (OECD).
The Paris-based group reported that per capita real household income declined by 0.2% in the third quarter, even as per capita GDP rose by 0.3%.
Among the 21 countries with data available, 10 reported declines in per capita income — led by Spain, which saw incomes contract by 2.1%. That drop was “driven by an increase in taxes on income and wealth,” the OECD said.
Canada saw real household income per capita decline by 0.5% in the third quarter, which amounted to a third consecutive quarter of declining household income “against a backdrop of near-zero or negative GDP growth,” the OECD said.
In the U.S., household incomes were down 0.3% despite a 1% increase in real GDP per capita. “This was mainly due to decreases in government social benefit payments including Medicaid and increases in payments of taxes and social insurance contributions,” it noted.
At the same time, 11 countries registered increases in household income for the third quarter, the OECD said, with Italy and the U.K. both recording gains.