No. of Recommendations: 4
Is the reduction in employee compensation compared to GDP due to capital investment allowing more GDP being produced per employee hour or due to employees being paid less per hour for GDP produced.
In 2000, using dollars adjusted for inflation, an employee hour produced $75 of GDP. In 2025, an employee hour produced $120 per hour.
St. Louis Fed (FRED): Nonfarm Business Sector: Labor Productivity (Output per Hour) for All Workers (OPHNFB) | FREDSo at first blush it may appear that employees are receiving less, but perhaps it's the people investing capital that are being rewarded.
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