This number helps explain why many Americans are down on the economy
American workers' share of the economic pie has fallen to its lowest level since at least 1947, when the federal government began tracking the data, according to an analysis by Federal Reserve economists.
The measure, known as "labor share of income," tracks how much of the nation's economic output flows to workers in the form of wages and salaries, as opposed to the share that goes to investors and corporations through profits, dividends and other capital income. A shrinking labor share of income indicates that more economic gains are flowing to shareholders and business owners, rather than to workers.
As of early 2026, American workers received 54.1% of national income, according to research from the Federal Reserve Bank of New York. By comparison, that figure topped 65% almost 80 years ago, when the government began tracking the data following World War II. In early 2020, it stood at 57.7%, indicating that workers have continued to lose ground since the pandemic.
Roughly 48% of Americans said their financial situation was worse in May than a year ago, the highest share since January 2023, according to a recent survey by the Federal Reserve Bank of New York.
https://www.msn.com/en-us/money/markets/this-number-helps-explain-why-many-americans-are-down-on-the-economy/ar-AA26RIDB