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 Smyth County'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 Smyth County over time.

When measured in current dollars, Smyth County's total industry earnings increased 961.66%, from $72M in 1970 to $764M in 2022. When measured in constant 2017 dollars to adjust for inflation, it advanced 80.84%, from $364M in 1970 to $658M in 2022.

Figure 2 traces Smyth County's and Virginia's annual real total industry earnings for the period 1969-2022 to illustrate real total industry earnings patterns over time. During this 54-year period, Smyth County's real total industry earnings rose from $377M in 1969 to $658M in 2022, for a net gain of $282M, or 74.69%. In comparison, Virginia's real total industry earnings increased from $73,551M in 1969 to $354,078M in 2022, for a net gain of $280,527M, or 381.41%.

Figure 3 shows Smyth County's real total industry earnings growth in a broader context by offering direct comparisons across time with Virginia, 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.

Smyth County's overall real total industry earnings growth was 74.69% over 1969-2022 trailed Virginia's increase of 381.41%, and fell below the United States' increase of 278.59%.

Another interesting and insightful way of highlighting the total industry earnings growth of Smyth County is to trace its individual percentage contributions to Virginia'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 Virginia's total industry earnings, while a declining share shows it grew more slowly.

In 1969, Smyth County's total industry earnings totaled 0.51% of Virginia's total industry earnings, while in 2022 it totaled 0.19% thereby yielding a -0.33% share-shift.

Figure 5 highlights the short-run pattern of Smyth County'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, Smyth County's real total industry earnings grew at an annual rate of 1.15% over 1970-2022. The county posted its highest growth in 1978 (13.28%) and posted its lowest growth in 1975 (-6.24%). In 2022, Smyth County's real total industry earnings declined by -0.13%

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 shows the annual percent change in Smyth 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, 2010s, and 2020-2022.

During the 1970s, Smyth County's annual real total industry earnings growth rate averaged 1.51%. It averaged 3.02% in the 1980s, 2.12% in the 1990s, -1.18% during the 2000s, 0.31% throughout the 2010s, 0.97% thus far this decade (2020-2022).

Figure 7 compares the decade average growth rates for Smyth County noted in the previous graph with the corresponding decade averages for Virginia and the nation. As the chart reveals, Smyth County's average annual real total industry earnings growth lagged Virginia's average in the 1970s (1.51% vs. 3.72%), lagged Virginia's average during the 1980s (3.02% vs. 4.23%), recorded under Virginia's average throughout the 1990s (2.12% vs. 3.37%), amounted to less than Virginia's average in the 2000s (-1.18% vs. 2.58%), fell below Virginia's average during the 2010s (0.31% vs. 1.69%), and posted below Virginia's average over the 3 year period of the current decade, 2020-2022 (0.97% vs. 1.71%).

Finally, relative to nationwide real total industry earnings growth trends, Smyth County lagged the nation during the 1970s (1.51% vs. 3.13%), registered above the nation throughout the 1980s (3.02% vs. 2.62%), fell below the nation throughout the 1990s (2.12% vs. 3.43%), trailed the nation in the 2000s (-1.18% vs. 1.47%), posted below the nation throughout the 2010s (0.31% vs. 2.53%), and fell below the nation over 2020-2022 (0.97% vs. 1.48%).