The labor market is the foundation of income for nearly all working-age families, so when the labor market deteriorates, household income drops.

As the figure shows, income for the median working-age household – where the householder is under 65 – dropped by $4,184 between 2007 and 2010.  Furthermore, the Great Recession came on the heels of one of the worst business cycles (2000-2007) on record in terms of job creation, one in which the income of the median working-age household fell $2,113.

Thus, the typical working-age household brought in roughly $6,300 less in 2010 than it did in 2000, a more than 10 percent decline. A lost decade, indeed.

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Click on the figure to enlarge