Posts filed under “Employment”

Today’s NYT has an article on Inflation, Wages, Income and Corporate Profits.

We first started running a chart depicting the same issue way back in May 2004, and have featured it several times since.

Selected Component Shares of National Income
click for larger graphic


Graphic via St. Louis Fed


Here is a quick excerpt:

In the first quarter of 2006, wages and salaries represented 45 percent of gross
domestic product, down from almost 50 percent in the first quarter of 2001 and a
record 53.6 percent in the first quarter of 1970, according to the Commerce
Department. Each percentage point now equals about $132 billion.

Total employee compensation — wages plus benefits — has fared a little
better. Its share was briefly lower than its current level of 56.1 percent in
the mid-1990’s and otherwise has not been so low since 1966.

Over the last year, the value of employee benefits has risen only 3.4
percent, while inflation has exceeded 4 percent, according to the Labor

In 2004, the top 1 percent of earners — a group that includes many chief
executives — received 11.2 percent of all wage income, up from 8.7 percent a
decade earlier and less than 6 percent three decades ago, according to Emmanuel
Saez and Thomas Piketty, economists who analyzed the tax data."

Here’s some of our prior discussions during the last few years:

Disposable Personal Income as a % of GDP

GDP Up, Wages Stagnant

Expansion Leaving Workers, Income Behind

The Disconnect and Economic Classes

Atypical Business Cycle Recovery

Income Lag? Blame China

Wages and Consumer Spending (Not a Pretty Picture)

Real Wages Fail to Match a Rise in Productivity
NYT, August 28, 2006

The Seasonal Cycle and the Business Cycle
St Louis Fed
July 2006

Category: Earnings, Economy, Employment, Inflation

The Fed on Productivity & Inflation

Category: Economy, Employment, Federal Reserve, Inflation

Economists Are Starting to Get a Clue

Category: Commodities, Economy, Employment, Real Estate

Some Interesting Employment Charts

Category: Employment

What are the Odds of a Recession?

Category: Economy, Employment, Federal Reserve, Investing, Markets, Psychology

Careful What You Wish For: Perhaps the Fed Should Raise After all

Category: Economy, Employment, Federal Reserve, Fixed Income/Interest Rates, Investing, Markets, Psychology

Category: Employment, Federal Reserve, Inflation, Investing, Markets, Psychology

Where are the bodies? In line at Unemployment

Category: Data Analysis, Economy, Employment

Where are the Household survey Bulls?

Category: Employment

NFP: Final Piece in Fed Puzzle?

Category: Employment, Federal Reserve, Inflation, Markets