The Census Bureau also reported that the share of Americans with health insurance continued to increase. It said that only 9.1 percent of the population had no health insurance last year.
Recovering From Recession
Household income rose significantly last year, but it is still slightly lower than it was before the last two recessions. The rate of those living in poverty fell to its lowest level since the Great Recession, but, as with income, the rate is higher than it was before.
Several states, including Alaska, Indiana and Pennsylvania, expanded their Medicaid programs in 2015, taking advantage of increased federal funding under the Affordable Care Act. Private sector coverage also increased as companies hired more workers and offered them better benefits.
With the presidential election looming in less than two months, the annual report provided immediate fodder.
"We lifted three and a half million people out of poverty, the largest one-year drop in poverty since 1968," President Obama said on Tuesday at a rally in Philadelphia for Mrs. Clinton. "The uninsured rate is the lowest since they began keeping records. The pay gap between men and women shrank to the lowest level on record," he said, adding, "Thanks, Obama."
Mr. Trump, the Republican nominee, has repeatedly cited the stagnation of household income as evidence of a broader economic malaise. He did not address the new report directly at a rally in Clive, Iowa, but he said the Obama administration's economic policies had failed.
"Poverty is beyond belief," Mr. Trump said. "It's time to break up the failed Democratic control over our inner cities, and provide real hope and opportunity to every single community in this nation."
The Census Bureau's annual report, based on a survey of 95,000 households, is the latest evidence that 2015 was a good year for the economy. Employers added more than three million jobs as the unemployment rate fell to 5 percent. Hourly pay increased by 2 percent, adjusting for inflation. Americans drove more miles in their cars. Even housing showed some signs of a revival.
The details of the bureau's report revealed that the gains last year were both broad and deep. Notably, lower-income households saw the largest income gains in percentage terms. Real household incomes rose 7.9 percent for households in the 10th percentile and 6.3 percent for those in the 20th percentile. By contrast, the increase was only 2.9 percent for those households in the 90th percentile.
"You know the old saying, 'When the economy sniffles, the least advantaged catch pneumonia?'" said Jared Bernstein, an economist at the Center on Budget and Policy Priorities, a Washington research organization, and a former adviser to Vice President Joseph R. Biden Jr. "Well, that works the other way, too. The benefits of closing in on full employment disproportionately flow to the least advantaged."
The increase in median income outpaced average income, which rose 4.5 percent to $ 79,263. The median income is the amount that divides households evenly between those that make less and those that make more. Average income is generally higher because some households make a lot more.
The gains, however, came mostly from job growth rather than wage growth. More people are working, but many of them are still struggling to maintain their standard of living.
Jeff Labruzzo, 56, said he was still earning significantly less than before the recession. Mr. Labruzzo, who lives in southwest Louisiana, treats building sites for termites before concrete is poured. The construction business remains soft, and Mr. Labruzzo said he faced increased competition from firms that employ illegal immigrants. He had five workers, but he recently let two of them go.
"Things are to the point where I'm thinking about just closing up the business and letting my income drop," Mr. Labruzzo said. As a veteran, he said he could then qualify for government health benefits.
Last year's income gains do not fundamentally alter the economy's long-term trajectory. Growth remains slow despite the Federal Reserve's campaign to stimulate the economy. Predictions of faster growth, followed a few months later by disappointment, have become an annual ritual.
Both Fed officials and outside economists argue that stronger growth requires action by fiscal policy makers. But Democrats and Republicans are at loggerheads over the best steps, and there is little suggestion that a breakthrough is in the offing.
"It is encouraging that our economic recovery is lifting Americans out of poverty and boosting wages," said Representative Nancy Pelosi of California, the minority leader. "But instead of building on this progress, Washington Republicans want to turn back the clock."
Republicans responded in kind, presenting the data as evidence Democrats should step aside.
"Today's report is another disappointing confirmation that too many Americans are still struggling to provide for their families and reach their full potential," said Representative Kevin Brady of Texas, the chairman of the Ways and Means Committee. "The federal government invests billions of dollars each year in programs to help low-income Americans, but more than 43 million people continue to live in poverty."
The distribution of income in the United States remains tilted toward the affluent. Last year's gains by lower-income households were not enough to shift measures of income inequality.
The data also was a mixed bag for minority groups. Poverty rates fell most sharply for African-American and Hispanic households, but their income gains were smaller than for white households.
"One good year does not reverse decades of stagnation," Mr. Bernstein said. "Middle- and low-income households need a lot more than one good year. We need to keep this going."
An earlier version of a capsule summary of this article misstated the year covered by the Census Bureau's report. The increase in household income was compared with 2014, not 2015.
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