Economist Joseph McCartin notes it's disturbing for workers to see the share of economic growth going into their pocketbooks at an all-time low. New data from the Bureau of Labor Statistics shows that 52.8 percent of wealth now goes to workers, a decrease from about 65 percent immediately following World War II. Corporate profits are at a record high, while worker earnings have only increased by 12.5 percent over the past two decades. The trend has been building for 50 years, long before the current economic boom fueled by AI and other factors.
Written by the local model on 2026-09-09,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Since the start of this century, the S&P 500 stock index has gained about 600%, while inflation-adjusted worker earnings have climbed just 12.5% over the same period. This means that only 52.8% of economic growth translates to worker compensation, which is the lowest level ever recorded, according to new data from the Bureau of Labor Statistics. In contrast, after World War II, when the government began collecting data, workers took home about 65% of the wealth generated by economic growth. Despite this trend, corporate profits are at a record high, and many Americans are struggling to afford basic necessities like food and rent, with some even using credit or "buy now, pay later" loans to make ends meet.
Written for “Decline of the US Middle Class” on 2026-09-09,
grounded in this article and the 0 other(s) covering the same event.
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Leaning score -0.35 for article 7387 (medium confidence, 2 verified quotes) · logged 2026-09-09
It’s the day after Labor Day, and it’s not a great day to be a worker.
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it → ’ → Day
New data released this month by the Bureau of Labor Statistics shows that the share of economic growth that translates to worker compensation is now at the lowest level ever recorded.
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that → release → level
Now, 52.8 percent of that wealth goes into workers’ pocketbooks.
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percent → go → pocketbooks
For comparison, that number—known to economists as the “labor share”—was at about 65 percent immediately following World War II, when the government began collecting data.
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government → know → data
“Since approximately the start of this century, the S&P 500 stock index has gained about 600 percent,” as Rob Wile recently reported for NBC News.
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Wile → gain → News
“Over the same period, inflation-adjusted worker earnings have climbed just 12.5 percent.”
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earnings → adjust → period
Many Americans, meanwhile, are doing things like buying groceries on credit and taking out “buy now, pay later” loans to afford electricity or rent.
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Americans → do → electricity
There are a few different factors that might be blamed for this situation: corporate consolidation, tariff-related price-gouging, and the capital-intensive, labor-light AI boom among them.
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that → be → them
But this trend—GDP goes up, but workers take home a slimmer share of that money—has been building for fifty years, long before AI or the Trump presidency.
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workers → go → AI
“I think it’s really disturbing news for workers,” Joseph McCartin, professor of labor history at Georgetown University, told Talking Points Memo back in May, when the labor share hit 54.1 percent.
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share → think → percent
In the intervening months, the labor share has plunged yet again.
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share → intervene → months
“It shows that even while the economy is growing, workers are getting a smaller and smaller share of the economic pie.”
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workers → show → pie
