U.S. workers took home their smallest share of capital since at least 1947

The labor share of the US economy decreased to 52.8% in Q2 2026, the lowest level since 1947, while corporate earnings soared to a record $2.1 trillion in 2025. This decline in labor share is attributed to a shift towards capital, with economists warning of a K-shaped economy where the rich get richer and the poor get poorer. The US workforce is also experiencing a slowdown, with unemployment ticking up to 4.2% and employers adding fewer jobs in 2025 compared to 2024.