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Latest edition · September 4, 2026

Blog en 1666046

Recent revisions show the US labor share of GDP has fallen to its lowest recorded level since 1947. Rather than sectoral shifts, this trend appears driven by structural aging, automation, and the reclassification of wages as profits among the self-employed.

Data revisions indicate that the labor share of US GDP has dropped to an all-time low since records began in 1947, a pattern also evident in other economies. Research from the Federal Reserve dismisses sectoral composition changes as the culprit. Instead, structural demographic changes—where aging populations rely on automation and investment returns—and the rise of self-employment, where business owners take earnings as dividends rather than wages, provide more compelling explanations for the rising profit share of GDP relative to labor.

Key takeaways from the latest edition

• 1.Revisions to US economic data place the labor share of GDP at its lowest level since data collection began in 1947, reflecting a broader global trend.
• 2.Federal Reserve research suggests the decline in workers' share of GDP is not primarily driven by shifts in economic composition from labor-intensive to capital-intensive sectors.
• 3.Structural demographic aging and machine automation, alongside statistical measurement distortions from post-pandemic self-employment and dividend payouts, are leading explanations for the lower labor share.

What this series covers

• Global asset class preferences definitions
• Appendix
• Risk information
• Generic investment research – Risk information:

Edition archive

• Blog en 1666046

  September 4, 2026

• Blog en 1665697

  August 28, 2026

• Blog en 1664928

  August 17, 2026

• Blog en 1664967

  August 17, 2026