U.S workers just took home their smallest share of capital since at least 1947—and the lowest ever recorded

In the second quarter of 2026, U.S. workers received just 52.8% of the country's economic output, marking the lowest share since BLS began tracking labor data in 1947. Despite corporate earnings reaching record highs, with Fortune 500 companies making a record $2.1 trillion in 2025, the shrinking labor share signals a widening income gap between workers and the wealthy.

Economists warn that this decline may be due to a shift towards capital and the increasing impact of automation, which is displacing workers and boosting productivity. Unemployment rose to 4.2% in September, and employers added fewer jobs in 2025 compared to 2024, with only 584,000 jobs added in September. The U.S. added a paltry 29,000 jobs in September, far short of economists' projections.

While some argue that automation will eventually create new jobs and boost GDP, others suggest that jobless growth and an immigration crackdown are exacerbating the struggle of American workers, widening the gap between the rich and the rest.