Report of the INTERNATIONAL LABOUR ORGANIZATION —
Simply put, more of the national pie has been going to profits, and less to workers.
This has in many cases hurt the economy by suppressing demand or causing unsustainable household debts.
Recent evidence shows this trend has been going on for decades, contrary to earlier assumptions.
In 16 developed economies, the average labour share dropped from 75 per cent of national income in the mid-1970s to 65 per cent in the years just before the economic crisis. It then rose somewhat but declined again after 2009.