U.S. labor share hits historic low as Amazon workers increasingly rely on SNAP and Medicaid
The share of economic output going to workers fell to 52.8%, the lowest since 1947, while Amazon’s number of employees on SNAP and Medicaid nearly tripled since 2020.
According to the Bureau of Labor Statistics, the labor share of U.S. economic output fell to 52.8%, the lowest point since data collection began in 1947, as corporate earnings rose dramatically. A recent GAO report found that Amazon now has 12,346 workers on SNAP and 11,338 on Medicaid, nearly three times the 2020 counts, while its annual profit climbed from $11.6 billion to $77.7 billion and revenue hit a record $717 billion.
Amazon’s spokesperson Rachael Lighty contested the interpretation, emphasizing that the company offers industry-leading wages and low-cost health coverage. The report also noted rising reliance on federal assistance among employees of Walmart, FedEx, and rideshare and delivery platforms. Analysts such as Diane Swonk and Brent Neiman attribute the shrinking labor share to decades of declining unionization, the rise of subcontracted and gig work, and AI-driven productivity that boosts profits without raising wages.
Why it matters
It shows how growing corporate profits are not translating into better living standards for most American workers.
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