US workers' share of GDP skids to fresh record low

The U.S. labor share of nominal GDP fell to a record low of 52.9% in the second quarter, outpacing a productivity boom that is producing output gains ahead of wage growth.

‌U.S. workers again saw their slice of the U.S. 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 Labor Statistics reported on Thursday. The so-called ‌labor 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% in the second quarter from 53.7% ⁠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 labor share has been falling for decades, driven by forces such as the diminishing ​breadth and power of organized labor, globalization that shifted relatively high-paying manufacturing jobs to ⁠low-cost overseas production centers. 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 toward 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.