Ernie Tedeschi: Labor share in nonfinancial corporate sector fell after 2000

Ernie Tedeschi: Labor share in nonfinancial corporate sector fell after 2000
Labor share fell post-2000 in sector

Ernie Tedeschi observes that the distinction between labor and capital is clearer in the Nonfinancial Corporate Business sector. Sectoral and depreciation adjustments generally increase the reported labor share level and typically show flat or rising shares from 1973 to 2000.

However, Tedeschi notes that after 2000, the labor share in this sector has declined consistently.

Tedeschi has previously tracked wage and cost trends across U.S. industries. He found that grocery store margins fell to near 25-year lows in 2025, increasing pressure on household budgets. In another report, Tedeschi noted that lower-income workers reported faster nominal wage growth since the pre-pandemic period.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
Weekly Top Bonuses
up to $2,500
deposit bonus for all clients
CLAIM BONUS
Your capital is at risk.