Workers’ share of America’s income is at a record low before the AI boom even begins
Fortune Eva Roytburg ● Covered by 2 sources
Workers’ share of U.S. income has fallen to its lowest level on record even before an anticipated AI productivity boom starts. Labor’s share dropped to 52.8% and margins reached a record 14.9% of GDP. Analysts say productivity gains have protected corporate margins rather than labor income, so labor’s share may keep falling as AI-related capital spending concentrates benefits.
Why it matters
EY-Parthenon chief economist Gregory Daco says that the economy’s surprising productivity gains so far predate AI.
Related stories
The betrayal behind the data-center backlash: AI promised to break the rules of class but is just rewarding them so far
Fortune ·
10
AI is hitting entry-level jobs hardest, Stanford study finds
Ars Technica · 1 month ago ·
26
Workers feared AI would kill jobs. Instead, it could boost their paychecks: 72% of employers say they’ll pay more for AI skills
Fortune ·
39