US prime-age employment near record high while labor income share hits all-time low

soumitrashukla9 · x · 2026-08-24

An economist points out two seemingly contradictory facts coexist: the US prime-age employment-to-population ratio is near all-time highs, while the labor share of income is at an all-time low. The reconciliation: firms aren't firing workers en masse over AI yet, but AI reduces white-collar workers' outside options, giving employers more monopsony power. A nuanced counterpoint to the mass-unemployment AI narrative.

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