Labor Share of U.S. Economic Output Reaches Record Low

Labor's share of U.S. economic output reached an all-time low while the profit share reached a near-record high, according to @WSJ reporting. The figures show how total output is divided between worker compensation and business profits. The shift coincides with consumer sentiment measures that remain below historical averages.

Data indicate the labor share has declined steadily in recent quarters. The profit share moved in the opposite direction over the same span. These changes affect how gains from production are distributed between households that rely on wages and firms that retain earnings. The reported pattern provides one data point used to assess broader income distribution within the economy.