Of the many divisions between urban and rural Oregon, personal income is among the starkest.

People living near Oregon’s biggest cities earn nearly twice as much as those living in remote, sparsely populated areas. That’s according to a new report from the Oregon Employment Department.

For example, Washington County residents earned $71,500 per capita during 2021, according to the analysis of the latest federal data by economist Molly Hendrickson. That’s the most of any county in Oregon and well above the statewide personal income level of $62,000 per capita.

Contrast that with Malheur County, which had Oregon’s lowest per capita income at $38,900.

Similar disparities exist across Oregon. The three counties in the Portland area all had per capita incomes over $70,000. The eight counties with incomes under $50,000 are mostly in eastern or southern Oregon.

There are many reasons incomes vary so dramatically. Oregon’s largest and most lucrative industries are in its big cities, which also have the highest cost of living. Some rural areas have struggled to overcome the decline of the state’s natural resources industries and attract new business and residents.

A key component of that trend is the aging populations in many of the counties with lower incomes. Many younger people leave smaller communities for higher wages in the cities, leaving behind a higher share of retirees who rely on Social Security and other government programs for a big part of their income.

Such “transfer payments” from the government, Hendrickson notes, are highest in Wheeler, Malheur and Jefferson counties – the three counties with Oregon’s lowest per capita income. Transfer payments also include Medicare, Medicaid and unemployment insurance, though Hendrickson said the higher share of transfer payments in Oregon’s lower-income counties has more to do with age than dependence on government subsidies.

Overall, Oregon ranks 21st among states for personal income, which grew by 8.2% in 2021 – tied with Washington for the 10th fastest rate in the nation. COVID-19 provided a boost in personal income, according to Hendrickson, because of stimulus payments coupled with the boost that came from people returning to work as the pandemic eased.

State economists expect personal income growth will cool considerably in 2023, to 2.4%. That’s partly because well-off Oregonians boosted their incomes last year by cashing out investments after the stock market’s big run in 2020 and 2021, and partly because economists expect a “mild” recession this year.