Investors rewarded at the expense of workers: As economy continues to grow, wages fall to a record-low share
It is now the least rewarding time to be a worker in the U.S. economy since the government started keeping track.
The share of economic growth captured by labor in the form of compensation like wages fell to a record low last quarter, hitting 52.8%, according to the Bureau of Labor Statistics, which began recording the statistic in 1947.
In other words, even as the economy continues to grow, worker pay comprises an ever smaller slice of the pie.
The data comes as stock prices continue to hover near all-time highs, while wage growth is barely keeping up with inflation.
On Friday, the Bureau of Labor Statistics reported that wage growth slowed to its lowest rate in five years in August and remains below the broader pace of price growth.
It’s the latest data point reflecting a decadeslong stagnation in returns to labor, while corporate profits have exploded.
Since approximately the start of this century, the S&P 500 stock index has gained about 600%. Over the same period, inflation-adjusted worker earnings have climbed just 12.5%. [Continue reading…]