According to the U.S. Bureau of Labor Statistics, the labor share in the nonfarm business sector reached 52.8 percent in the second quarter of 2026, marking the lowest level recorded since data collection began in 1947. The labor share represents the portion of economic output paid to workers as compensation, which includes wages, salaries, benefits, and employer contributions to social insurance.
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Historically, labor share had been relatively stable in the range of 60 to 66 percent following World War II, but it began a gradual decline in the early 21st century. This downward trend was accentuated by significant decreases after the recessions in 2001 and 2007-2009. After peaking at 58.9 percent during the temporary rise in the second quarter of 2020, labor share has continued on a mostly downward trajectory.
The Productivity office generated these findings, which are also discussed in the Monthly Labor Review. This data underscores the changing dynamics of labor compensation within the U.S. economy.