The share of national income received by U.S. workers declined to a historic low in the second quarter, the Bureau of Labor Statistics reported on Thursday, reflecting continued disparities between output growth and wage gains. The labor share of nominal gross domestic product—which measures the portion of economic output paid out to workers as compensation—fell to 52.9 percent, down from 53.7 percent in the first quarter. This marks the lowest level recorded since the BLS began tracking the series in 1947.

The decline coincided with stronger-than-anticipated productivity growth during the same quarter, indicating that increases in economic output continue to outpace wage growth for the average worker. This widening gap contributes to the erosion in labor’s share of the economy.

Economists attribute the persistent downward trend over several decades to structural factors including the weakening influence of organized labor and the globalization of production. The shift of higher-paying manufacturing jobs to lower-cost foreign markets has reduced labor’s bargaining power and overall compensation share.

This ongoing dynamic underscores challenges faced by U.S. workers in capturing a proportionate share of the nation’s expanding economic pie, even amidst rising productivity. As the labor share declines, questions persist about the long-term implications for income inequality and economic growth.