Labor share at its lowest level, 52.8 percent, in second quarter 2026

Labor share—the fraction of economic output that accrues to workers as compensation in exchange for their labor—in the nonfarm business sector was 52.8 percent in the second quarter of 2026, the lowest level ever recorded. (As shown in the chart, these data begin in 1947.)

Labor share in the nonfarm business sector was relatively stable throughout much of the post-World War II period, generally in the range of 60 to 66 percent. In the years after the start of the 21st century, the labor share percentage began a sustained decline. This included substantial decreases following the 2001 and 2007–2009 recessions before stabilizing in the years after 2010. During the 2020 recession, the labor share rate temporarily rose sharply, climbing to 58.9 percent in the second quarter of 2020, before quickly resuming its mostly downward trend to its current level.

These data are from the Productivity office. Also see Estimating the U.S. labor share in the Monthly Labor Review. The nonfarm business sector labor share of output is the portion of total production paid to workers as their total compensation including wages and salaries, benefits, pensions, employer payments for government social insurance, and other earnings.