Business · Economy · 19 hrs ago
US corporate profits rise as workers’ share of income falls
US companies are earning a growing share of the country’s income, while workers’ share has fallen.
The wage share of US economic output is now 52.9%, down from more than 60% through the early 2000s.
Technology companies are a striking example: analysts expect Nvidia to make $360 billion to $370 billion in net profit next year with about 40,000 employees.
Digital businesses can reach dominant positions and expand without costs rising as quickly, allowing profits to grow faster than employment.
Since the start of 2020, total US worker pay has risen 8%, while inflation-adjusted profits have risen 43%.
This gap may add to economic inequality and public dissatisfaction, even as the US economy grows.
The figures describe a wider trend in which income is flowing more to company owners and investors than to workers.
US corporate profits have risen to nearly 14 percent of the country’s gross domestic product, while the wage share has fallen to 52.9 percent.
The wage share was consistently above 60 percent until the early 2000s, according to the article.
Since early 2020, total employee compensation in the United States has risen 8 percent, while inflation-adjusted profits have increased 43 percent.
The article links the widening gap to digital change and the rise of dominant “superstar” firms.
Nvidia is forecast to earn $360 billion to $370 billion in net profit next year while employing 40,000 people.
- Who
- US companies and workers, including major technology firms.
- What
- Corporate profits have risen while workers’ share of national income has fallen.
- When
- The article was published on 11 October 2026; it also compares trends since early 2020 and the early 2000s.
- Where
- The United States.
- Why
- The article points to digital change and the rise of dominant firms whose costs do not rise much as they expand.
This story does not have two clearly opposing sides.
In today's economy, profits flow disproportionately to capital rather than labor.
Although the American economy can show robust growth, there is latent dissatisfaction among broad sections of the population.
Corporate success is worsening inequality in the US.
Digitalization has led to the rise of so-called superstar firms that have achieved a dominant position in their business.
The US wage share was consistently above 60 percent until the early 2000s.
Total employee compensation in the United States rose 8 percent, while inflation-adjusted profits increased 43 percent.
NZZ published its report on rising US corporate profits and the falling wage share.
Analysts forecast Nvidia net profit of $360 billion to $370 billion.
- US corporate profits
- Nearly 14 percent of GDP
- US wage share
- 52.9 percent
- Employee compensation since early 2020
- Up 8 percent
- Inflation-adjusted profits since early 2020
- Up 43 percent
- Nvidia forecast net profit next year
- $360 billion to $370 billion
Sources
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