US workers’ slice of corporate income falls to record low as profits hit all-time high - Moneycontrol.com
Analysis shows that employee compensation as a percentage of corporate GDP has fallen to the lowest level since records began in 1948 The Kobeissi Letter
Analysis shows that employee compensation as a percentage of corporate GDP has fallen to the lowest level since records began in 1948 The Kobeissi Letter noted that the trend has become particularly pronounced over the last two decades The US workers are receiving the smallest share of corporate income on record, while corporate profits have climbed to historic highs, according to an analysis shared by The Kobeissi Letter, citing data from Charles Schwab and Bloomberg. The analysis shows that employee compensation as a percentage of corporate gross domestic product (GDP) has fallen to around 54% in early 2026, the lowest level since records began in 1948.
The metric reflects the portion of income generated by corporations that is paid out to employees in the form of wages, salaries and benefits. At the same time, after-tax corporate profits as a share of nominal US GDP have risen to approximately 11.5%, marking the highest level on record, according to the chart. The Kobeissi Letter noted that the trend has become particularly pronounced over the last two decades. Since 2001, employee compensation as a share of corporate GDP has declined by roughly 10 percentage points.
Over the same period, corporate profits as a share of GDP have nearly doubled. The divergence highlights a long-running shift in how income generated by businesses is distributed. While workers continue to receive the majority of corporate income, their share has steadily eroded, with a larger portion accruing to profits, interest payments, taxes, depreciation and other corporate income components. The data comes amid an extended period of strong profitability among US corporations, driven by productivity gains, technological advances and expanding margins across several sectors.
According to The Kobeissi Letter, the latest figures suggest that American workers are retaining a smaller share of the economic value they help create than at any other point in the post-war era.
The BriefWire