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 the Fort Smith MSA's annual total industry earnings over 1970-2022 in current and constant (2017) dollars. Constant dollar measurements remove the effects of inflation. They allow for comparison of changes in the real purchasing power of the Fort Smith MSA over time.

When measured in current dollars, the Fort Smith MSA's total industry earnings increased 1,988.52%, from $348M in 1970 to $7,259M in 2022. When measured in constant 2017 dollars to adjust for inflation, it advanced 255.75%, from $1,758M in 1970 to $6,255M in 2022.

Figure 2 tracks the Fort Smith MSA's and Arkansas' annual real total industry earnings for the period 1969-2022 to illustrate real total industry earnings patterns over time. During this 54-year period, the Fort Smith MSA's real total industry earnings rose from $1,727M in 1969 to $6,255M in 2022, for a net gain of $4,528M, or 262.23%. In comparison, Arkansas' real total industry earnings increased from $21,822M in 1969 to $84,041M in 2022, for a net advance of $62,220M, or 285.13%.

Figure 3 shows the Fort Smith MSA's real total industry earnings growth in a broader context by offering direct comparisons across time with Arkansas, 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.

The Fort Smith MSA's overall real total industry earnings growth was 262.23% over 1969-2022 trailed Arkansas' increase of 285.13%, and fell below the United States' increase of 278.59%.

Another interesting and insightful way of contrasting the total industry earnings growth of the Fort Smith MSA is to trace its individual percentage contributions to Arkansas' 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 Arkansas' total industry earnings, while a declining share shows it grew more slowly.

In 1969, the Fort Smith MSA's total industry earnings comprised 7.91% of Arkansas' total industry earnings, while in 2022 it equated to 7.44% thereby yielding a -0.47% share-shift.

Figure 5 shows the short-run pattern of the Fort Smith MSA's real total industry earnings growth by tracking the year-to-year percent change over 1970-2022. The average annual percent change for the entire 53-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, the Fort Smith MSA's real total industry earnings grew at an annual rate of 2.52% over 1970-2022. The Fort Smith MSA recorded its highest growth in 1972 (10.14%) and recorded its lowest growth in 2009 (-4.96%). In 2022, the Fort Smith MSA's real total industry earnings grew by 1.09%

Over the past five decades some msas have experienced extreme swings in growth, and often such swings have tended to coincide with the decades themselves. Figure 6 again shows the annual percent change in the Fort Smith MSA'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, 2010s, and 2020-2022.

During the 1970s, the Fort Smith MSA's annual real total industry earnings growth rate averaged 5.41%. It averaged 2.56% in the 1980s, 3.69% throughout the 1990s, 0.64% throughout the 2000s, 0.74% in the 2010s, 1.01% thus far this decade (2020-2022).

Figure 7 compares the decade average growth rates for the Fort Smith MSA noted in the previous graph with the corresponding decade averages for Arkansas and the nation. As the chart reveals, the Fort Smith MSA's average annual real total industry earnings growth topped Arkansas' average throughout the 1970s (5.41% vs. 4.97%), outpaced Arkansas' average during the 1980s (2.56% vs. 1.67%), trailed Arkansas' average in the 1990s (3.69% vs. 3.76%), posted below Arkansas' average in the 2000s (0.64% vs. 1.22%), recorded under Arkansas' average in the 2010s (0.74% vs. 1.60%), and amounted to less than Arkansas' average over the 3 year period of the current decade, 2020-2022 (1.01% vs. 2.46%).

Finally, relative to nationwide real total industry earnings growth trends, the Fort Smith MSA exceeded the nation throughout the 1970s (5.41% vs. 3.13%), trailed the nation throughout the 1980s (2.56% vs. 2.62%), exceeded the nation in the 1990s (3.69% vs. 3.43%), fell under the nation during the 2000s (0.64% vs. 1.47%), fell below the nation over the 2010s (0.74% vs. 2.53%), and recorded underneath the nation over 2020-2022 (1.01% vs. 1.48%).