Apr 17, 2026
There's good news and bad news for America's economy.
The good news is that the economy is growing. The bad news is that workers and laborers are getting a shrinking piece of this expanding pie. In fact, labor's share of national economic output is at its lowest level in 79 years, according to data from the Bureau of Labor Statistics (1).
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The share of U.S. gross domestic product (GDP) derived from those who earn salaries and wages was down to just 53.8% in the third quarter of 2025. That's below the 55.6% average recorded so far in the 2020s and the lowest reading since the BLS started tracking this measure in 1947.
Corporations and business owners are claiming a larger share of the nation's output. Corporate profits surged at an annualized rate of 4.4% in the third quarter of 2025, according to the Bureau of Economic Analysis (2).
The data paints a clear picture: the economy is booming, but only for investors and corporations, not for ordinary workers.
But that doesn't mean workers are permanently excluded from any chance of financial progress. Here are three stealthy moves that can help you grab a slightly bigger piece of the pie for yourself.
Become a shareholder
If corporate profits are eating labor's lunch, it's clearly being reflected in the stock market.
The S&P 500 and NASDAQ indices are both up 19% and 28% over the twelve months ended in early March, 2026 (things have since been wobblier). A shift to tech-enabled, asset-light business models has expanded corporate profit margins in recent years, according to analysis by T. Rowe Price (3). Some of that increased profitability may be reflected in the surging stock market.
Most workers do not see these gains unless they proactively invest a portion of their paychecks into the market. You don't need to be a stock-picking wizard to benefit from this wave. A simple low-cost index fund should be enough to give you some exposure.
Using a tax-advantaged account like a 401(k) plan along with an employer match (if available) should help you supercharge this strategy.
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Consistently investing and accumulating assets over time should make you gain a foothold in the booming economy.
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Build a valuable, AI-proof skill
One of the strongest forces driving the economic imbalance between labor and capital could be the recent advancements in AI.
Corporations are increasingly pointing to AI as a key cause of their recent layoffs. Analysis by placement firm Challenger found that at least 55,000 job losses in 2025 could be directly attributed to AI, 12 times higher than two years ago (4).
This could be just the tip of the iceberg. Anthropic CEO Dario Amodei speculated to Axios that AI could eliminate half of all entry-level white-collar jobs, and pull the unemployment rate as high as 20% within five years (5).
Adopting and learning some AI-related skills, could help you build resilience in your career. Alternatively, you could adopt a skilled trade that is more AI-proof. Enrollments in vocational colleges have jumped 28% over the past four years as an increasing number of white collar workers consider blue-collar careers, according to CNBC (6).
Start a side hustle
Relying on a single paycheck as labor's share of the economy shrinks is a genuine risk. That’s why more U.S. adults are seeking side gigs to supplement their income.
In 2025, a whopping 72% of Americans either already had a side hustle or were considering one, according to SurveyMonkey (7). These hustlers made $885 per month on average, which could be a gamechanger for many household budgets.
A key advantage of being a freelance or contract worker is that you can determine your own hours and set your own rates. Greater control over your career should help you navigate this volatile economy with more confidence.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
U.S. Bureau of Labor Statistics (1); U.S. Bureau of Economic Analysis (2); T. Rowe Price (3); CBS News (4); Axios (5); CNBC (6); SurveyMonkey (7)
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
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