Skip to main content

Labour's share of income and the outlook for US equities

Labour’s share of income in the US nonfarm business sector hit its lowest level since at least 1947 in Q3 according to data released last Thursday by the Bureau of Labor Statistics (BLS). (See Chart 1.) A continued drop in labour’s share would be a boon for corporate profits. But we doubt it will happen. And even if it does, it will not necessarily be accompanied by a stronger stock market.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access