Shares of labor and capital in the AI economy
Reports from the IMF, NBER, and JP Morgan detail the impact of AI on the labor market and labor income distribution. In the US, labor productivity has increased, but labor income distribution has dropped to a historic low of 55.2%, while capital returns have risen to a 50-70 year high. The labor productivity growth rate is expected to be 3.4% in the first half of 2026, but labor income distribution has decreased.
AI automation is reducing labor demand and weakening wage negotiation power, leading to a decrease in labor income distribution.
Written by urgent.news from Hankyoreh's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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