Corporate profits in the United States reached unprecedented levels in the second quarter of 2026, even as wage growth and employee compensation’s share of national income declined to historic lows, according to recent data from the Bureau of Economic Analysis.

U.S. corporate earnings hit an annualized $4.8 trillion in the April-June period, representing 14.9% of gross domestic product (GDP). This marks a new record, exceeding previous peaks, according to economists at EY, who characterize the corporate share of GDP as an all-time high. Meanwhile, the proportion of national income allocated to wages and benefits decreased to 54.1%, the lowest since 1947. The labor share attributable to wages alone slid to 43%, a level not seen since 1929.

Although the figures suggest a marked shift in economic gains from labor toward capital, experts caution that some of the change may be influenced by revised accounting methods used to calculate corporate profits. Additionally, some profits benefit workers indirectly through stock ownership and pension plans, though such benefits are typically concentrated among higher earners rather than lower-wage employees.

The underlying trend is largely linked to structural economic and policy shifts over recent decades. Key factors include reductions in corporate tax rates, a relaxation of antitrust enforcement, and the weakening of labor unions and workplace protections. These changes have persisted across multiple administrations, regardless of party affiliation, with both Republican and Democratic governments overseeing periods of rising corporate profit shares and declining labor income shares.

Historical data reflect this transformation: corporate profits as a share of GDP hovered around 8% during the 1980s, while the labor share peaked at approximately 65% around 1970. A study by the Rand Corporation a few years ago estimated that if the distribution of income between labor and capital had remained at post-World War II levels, aggregate annual incomes for most American workers—excluding the top 10%—would have been $2.5 trillion higher in 2018. Extending that analysis using current data suggests that figure could now exceed $3.6 trillion.

This widening gap between corporate earnings and workers’ compensation has contributed to growing public dissatisfaction with the U.S. economic system. Many Americans perceive that the benefits of economic growth are increasingly concentrated among shareholders and top executives, while wage earners see diminished returns.