This number helps explain why many Americans are down on the economy
Summary
American workers are earning a smaller part of the nation's income than they have for many decades, dropping to the lowest level since records started in 1947. This means more money is going to business owners and investors, while many workers feel their wages don’t keep up with rising prices.Key Facts
- In early 2026, workers received 54.1% of the national income, down from over 65% in 1947.
- The labor share of income was 57.7% in early 2020, showing a continued decline after the pandemic.
- About 48% of Americans said their financial situation worsened compared to a year before, according to a 2026 Federal Reserve Bank survey.
- Three-quarters of Americans reported their income does not keep up with inflation, based on a May CBS News poll.
- The share of corporate income paid to workers fell to 71.3% in early 2026 from 77.8% in early 2020 and 79.1% in 1979.
- More profits are going to shareholders and executives through dividends, stock buybacks, and capital gains, which have lower tax rates than wages.
- Factors causing the decline include fewer unions, tax policy changes, and increasing income inequality.
- This trend helps explain why many workers feel financially unstable even when unemployment is low and the economy is growing.
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