Thursday, November 3, 2016

When Labor Share Stops Going Down, Employment Growth Stops Going Up


Labor Share (blue) and the Growth of Employment (red)
Click Graph to Enlarge the Image
As long as labor is getting a smaller share, capital is getting a bigger share, so faster employment growth boosts profit. Then, when labor share stops decreasing, faster employment growth no longer boosts profit.

1 comment:

Oilfield Trash said...

So "Your workers are your customers. While they may be a cost at work, they are a source of revenue as consumers." is empirically supported.