Households’ share of national economic pie nears 50-year low | Business | The Guardian

A worker removes stock in a warehouse

“Back in 1975, Australia households received a bigger share of the economic pie than households in the US, France and New Zealand. Only in the UK did the compensation of employees account for a larger share of GDP.”This trend in most economies was mainlybecause of structural changes that had reduced the bargaining power of employees, including globalisation, the increased flexibility of the labour market and technical innovation, which had flattened firms’ cost curves, But the larger decline in Australia may be partly because of the rise in the importance of the mining sector, which tends to generate relatively large profits while employing relatively few workers,” he said.

Source: Households’ share of national economic pie nears 50-year low | Business | The Guardian