US workers again saw their slice of the US economy slide to a record low in the second quarter amid an ongoing productivity boom that is producing output gains which are outpacing wage growth, the Bureau of Labour Statistics reported yesterday.
The so-called labour share of nominal gross domestic product, which BLS defines as the percentage of output that accrues to workers in the form of compensation, fell to 52.9 per cent in the second quarter from 53.7pc in the first quarter. That was the lowest since the series began in 1947, BLS said as it reported stronger-than-expected growth in second-quarter productivity.
The labour share has been falling for decades, driven by forces such as the diminishing breadth and power of organised labour, globalisation that shifted relatively high-paying manufacturing jobs to low-cost overseas production centres.
More recently the economy has seen technological advances like automation and potentially artificial intelligence that allow companies to increase output without substantially adding to headcount.
The trend essentially means that benefits of productivity gains are accruing more towards business owners and shareholders than to workers through wage gains.
Real weekly earnings – which measure wage growth against inflation – were essentially unchanged during the first half of 2026, though the most recent data for June snapped three straight months of falling readings and was the strongest in six years.
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