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IPFS News Link • Employee and Employer Relations

US Workers Receive Smallest Share of Corporate Profits Since 1948

• https://www.linkedin.com, The Kobeissi Letter

Employee compensation as a % of corporate GDP has fallen to ~54%, the lowest since records began in 1948.

In other words, workers are receiving ~54% of the income generated by corporations, while the remaining ~46% goes to profits, interest, taxes, depreciation, and other corporate income components.

At the same time, US corporate profits as a % of GDP are up to ~11.5%, the highest on record.

Since 2001, employee compensation as a % of corporate GDP has declined -10 points.

Over the same period, the corporate profits proportion of GDP has doubled.

Workers are keeping less of what they produce than at any point in history.


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