r/Economics debates a report: US wages and salaries fall to about 43% of national income, the lowest since 1929
A striking long-run number, with a useful caveat about what it does and doesn't count.
The thread links an Unusual Whales article (published in August) reporting that wages and salaries were roughly 43% of US gross domestic income in the first quarter of 2026, the lowest reading in a series dating back to 1929. The article adds context: the figure leaves out benefits such as employer health insurance and retirement plans; a broader labor-share measure including those stood at 54.1% in Q1 2026, the lowest since 1947; it doesn't mean pay was cut, since the Employment Cost Index shows wages and salaries up 3.2% in the year to June 2026; and a New York Fed analysis in June 2026 linked the decline to structural changes such as globalization and automation.
The thread drew about 23,800 upvotes in a 5.2-million-member community. The most-upvoted replies are largely political, with many blaming Republican economic policy and national debt; one top reply argues the real issue is that most people are being left out of gains they produce.
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Labor share
After exploring Wages Fall to 43% of U.S. Gross Domestic Income, Lowest Since 1929, the measure behind the headline is explained in Labor share.
Wikipedia defines the wage or labor share as the part of national income that goes to wages, the counterpart of the capital or profit share, and a key indicator of how income is distributed.
Wikipedia · Wade · 5 min
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