U.S. Workers’ Share of GDP Hits All-Time Low, Corporations Reap Record Profits

New Delhi: While U.S. President Donald Trump continues his mission to “Make America Great Again,” American workers are witnessing a historic decline in their share of the country’s economic output.

According to recent data, labor’s share of U.S. GDP—representing wages, salaries, bonuses, and benefits for non-farm workers—has fallen to 53.8%, the lowest level since records began in 1947.

Historical Perspective

• In 1950, labor’s share stood at approximately 65%.
• By 1960, it reached a record 66%.
• In 2001, the figure was 64%, but it has since declined by 10.4 percentage points.

Meanwhile, corporate profit margins have surged to 10.9%, marking the second-highest level in history. This indicates that while workers are producing more than ever, the largest portion of economic gains is flowing to corporations, not employees.

Why It Matters
Experts attribute this growing disparity to automation and productivity gains. While companies are benefiting from higher output, they are using these gains to boost profits instead of raising workers’ wages. The result is a widening gap between the rich and the rest of the population. Analysts warn that if this trend continues, it could have negative long-term consequences for the U.S. economy.