John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
These payments—which include Social Security, Medicare, Medicaid, and income maintenance—accounted for 7.8% of all personal income in the county, according to information from the Economic Innovation Group.
This marks a slight decrease in the county’s reliance on government transfers compared to 2012, when such payments made up 8% of total income. Since then, the share has fallen by 0.2%.
Government transfer payments are non-repayable funds provided by federal, state, or local governments to support individuals in need. These payments aim to stabilize economic conditions and provide financial support during hardships. Key programs include Social Security transfers (retirement benefits), Medicare transfers (healthcare for seniors), Medicaid transfers (healthcare for low-income individuals), and income maintenance transfers (financial assistance for basic needs).
In 2022, government transfers in Somerset County primarily focused on older adults—such as Social Security transfers, which totaled $1.3 billion (43.4% of all transfer income), and Medicare, which accounted for $764.4 million (25.6%)—played a significant role in the county's overall income.
On a per capita basis, Social Security payments rose from $3,019 in 2012 and $681 in 1970 to $3,739 in 2022, reflecting a 23.8% increase over the past decade and a 449% shift since 1970.
Similarly, Medicare transfers climbed from $1,945 in 2012 and $137 in 1970 to $2,204, marking 13.3% and 1,508.8% increases, respectively.
In comparison, during 2022, residents aged 65 and older made up 17.1% of the total population, compared to 13.3% in 2012 and 7.1% in 1970.
According to the Economic Innovation Group, total income in Somerset County excluding public assistance amounted to $102,140 per capita in 2022, compared to $110,753 when government transfers were included.
Breaking down the other contributions in the county, Medicaid transfers made up $419.7 million, a 14% share of total income, while income maintenance programs, including assistance such as SNAP or TANF, added another $181.5 million, or 6.1% of the total.
Compared to the previous year, Somerset County's reliance on government transfers decreased by 2.3%.
Government transfers have long been a modest financial safety net, historically comprising only a small fraction of Americans' income. However, since the 1970s—sometimes dubbed the “Great Transfer-mation”—dependency has surged from 8.2% (or $2,016 per capita in inflation-adjusted 2022 dollars) in 1970 to 17.6% (or $11,529 per capita) in 2022 nationwide.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | State Rank (Per Capita Transfers) | Dependency on Transfers (%) | % Population 65+ | Social Security Transfers (%) | Medicare Transfers (%) | Medicaid Transfers (%) | Income Maintenance Transfers (%) | Per Capita Transfers ($) |
|---|---|---|---|---|---|---|---|---|
| Cape May County | 1 | 23.47% | 29.55% | 38.5% | 26.5% | 18.6% | 7% | $16,805 |
| Cumberland County | 2 | 30.52% | 15.98% | 26.4% | 23.6% | 27.1% | 15.6% | $14,279 |
| Salem County | 3 | 26% | 19.25% | 33.9% | 23.2% | 23.4% | 11.2% | $14,102 |
| Atlantic County | 4 | 24.23% | 19.84% | 32.5% | 24.3% | 21.8% | 11.8% | $13,548 |
| Ocean County | 5 | 22.64% | 22.55% | 38.9% | 30% | 15.1% | 7.1% | $13,433 |
| Camden County | 6 | 21.65% | 16.54% | 28.8% | 22.9% | 26.7% | 12.7% | $13,093 |
| Essex County | 7 | 16% | 14.34% | 22.4% | 19.5% | 33.3% | 16.8% | $12,171 |
| Passaic County | 8 | 21.32% | 15.96% | 26.3% | 22% | 27.8% | 15.9% | $12,169 |
| Warren County | 9 | 18.5% | 19.66% | 39.6% | 28.3% | 15.4% | 7.2% | $11,639 |
| Monmouth County | 10 | 12.14% | 19.11% | 39.2% | 28.5% | 16.3% | 6.1% | $11,460 |
| Mercer County | 11 | 14% | 16.13% | 32.9% | 23.7% | 22.4% | 12.4% | $11,172 |
| Burlington County | 12 | 15.68% | 18.31% | 39% | 26.1% | 15.2% | 7.3% | $11,049 |
| Sussex County | 13 | 15.11% | 18.87% | 43.2% | 28.8% | 12.2% | 5.2% | $10,833 |
| Gloucester County | 14 | 17.22% | 16.81% | 38.2% | 26.8% | 14.8% | 8.5% | $10,743 |
| Hunterdon County | 15 | 10% | 20.9% | 47.3% | 29% | 10.3% | 3.6% | $10,283 |
| Union County | 16 | 13% | 15.19% | 31.2% | 21.9% | 25.3% | 11.6% | $10,020 |
| Hudson County | 17 | 13.68% | 12.83% | 19.6% | 20% | 33.9% | 16.7% | $9,947 |
| Bergen County | 18 | 10.17% | 18.26% | 39.1% | 28.9% | 15% | 6.3% | $9,880 |
| Middlesex County | 19 | 13.23% | 16.2% | 35.7% | 26.1% | 17.9% | 8.7% | $9,390 |
| Morris County | 20 | 8.34% | 18.22% | 43.7% | 28.9% | 12.9% | 4.5% | $9,303 |
| Somerset County | 21 | 7.78% | 17% | 43.4% | 25.6% | 14% | 6.1% | $8,613 |
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