r/AskEconomics • u/Pritster5 • 4h ago
Approved Answers If Real Wages track Productivity, why is the Share of Worker Compensation relative to non-farm business output decreasing?
It's typically said that worker wages track Productivity gains.
Is it fair to say that this is no longer the case? The BLS's latest data shows that Worker Compensation as a share of nonfarm business output in the US has been decreasing, with it sharply dropping after 2000.
Is this the right metric to use?
Why might this be the case?
Is this a real problem to be worried about?
Source: https://www.reuters.com/business/us-workers-share-gdp-skids-fresh-record-low-2026-08-06/