The share of wages and salaries in US gross domestic income has fallen to approximately 42.8% in 2024, a level not recorded since the onset of the Great Depression in 1929. This share exceeded 50% in the 1940s and remained above 48% through the 1960s. The New York Federal Reserve confirmed in June 2026 that this decline reflects structural changes linked to globalization, automation, and the rise of capital-light tech platforms. This erosion of labor’s share, which accelerated during the post-COVID period with a 1.6 percentage point drop from pre-pandemic levels, threatens consumer spending that accounts for roughly two-thirds of US GDP. Financial markets and digital assets could face consequences from this structural economic slowdown.
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