US labour share of business output falls to record low 54.1%
Updated
Updated · The Wall Street Journal · May 8
US labour share of business output falls to record low 54.1%
11 articles · Updated · The Wall Street Journal · May 8
The Labor Department said first-quarter labour compensation grew 3.1% annualised and fell 0.5% after inflation, while S&P 500 earnings were projected to rise 27%.
The report said AI-driven profits and investment are widening the gap between capital and workers, with spending surging in tech equipment, software and data-centre construction.
It argued AI is distorting growth, trade and markets, boosting imports and chip stocks while leaving wage growth subdued and workers increasingly worried about job losses.
As AI profits surge while wages shrink, are we witnessing a permanent break between corporate success and worker prosperity?
Is the AI boom creating a 'phantom economy' fueled by unsustainable spending and imported tech?
With AI's colossal energy needs creating new bottlenecks, can the tech revolution outpace our physical infrastructure limits?