Labor income has been shrinking as a share of U.S. personal income for decades while investment income and government transfers keep growing

This has been declining too big time pic.twitter.com/QYprmOcYja

— Sam (@SamMillerWright) October 7, 2026

U.S. workers’ share of the economy falls to a record low
https://www.reuters.com/business/us-workers-share-gdp-skids-fresh-record-low-2026-08-06/
Worker compensation fell to 52.9% of nominal GDP in Q2 2026, the lowest level since the BLS series began in 1947. The decline came as output increased faster than wage growth.

Corporate profits reach $4.8 trillion while workers’ share falls to a 1950s low
https://www.ft.com/content/6f3ada65-c56c-499c-8eb6-008fac58949d
Pre-tax corporate profits reached an annualized $4.8 trillion in Q2, equal to 18% of national income. Employee compensation fell to about 60% of national income, according to the Financial Times’ analysis of BEA data.

Hiring is now barely moving even though layoffs remain unusually low
https://www.reuters.com/business/us-weekly-jobless-claims-fall-layoffs-remain-low-2026-10-08/
September payrolls increased by only 29,000. Weekly unemployment claims remain below 200,000, producing a “low-hire, low-fire” labor market in which existing workers are relatively protected but people trying to enter or change jobs face a much weaker hiring environment.