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| Labor Share (blue) and the Growth of Employment (red) Click Graph to Enlarge the Image |
Thursday, November 3, 2016
When Labor Share Stops Going Down, Employment Growth Stops Going Up
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2 comments:
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.
Hussman:
"... profit margins have been higher and more resilient in this cycle than in prior economic cycles. Again, this elevation of profit margins is a mirror image of slack labor markets and weak growth in wages and salaries. The relationship isn’t perfect, as a result of quarter-to-quarter volatility, but the inverse relationship between the two is clear."
His graph shows great similarity across three peaks (1997-2018) between "Wage and salary compensation as a percentage of GDP" and "U.S. corporate profits as a percentage of corporate revenues (inverted)"
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