Matthias Ecke· S&D

Nuanced

The long-term trend is clear - the wage share is falling

Omissions

• The wage share shows cyclical patterns - it typically falls during economic expansions and rises during recessions (as seen in 2008-2009)
• The decline has not been continuous; there have been periods of increase, particularly during economic downturns
• The data available covers up to 2022-2024 period, before the claim date of February 2026
• The trend varies significantly across EU member states

Sources

• PrimaryEurostat - Annual national accounts - evolution of the income components of GDPFor the EU, the share of compensation of employees had a decreasing trend between 2005 and 2007 then increased significantly in 2008-2009 during the economic crisis
• SecondaryBruegel - The global decline in the labour income shareDocuments the decline in labour income share across advanced economies including euro area countries
• SecondaryEuronews - Workers' slice of the GDP: How do income shares compare across EuropeAnalysis reveals huge disparities in labour income share in GDP among European countries. Falling shares are likely to raise income inequality