Life has been getting tougher for labour for decades, with the real break coming in the 1980s. Over the past 35 years there has been a marked shift from wages to profits in the UK economy, with labour’s share of national income falling from 59% in 1977 to 53%
Odd figures: but the trend’s right.
in 2008 and the share of profits up from 25% to 29% over the same period
And very odd figures. For the profit share just ain’t 29%. He’s doing something naughty there by aggregating something else into the profit share.
What appears to have happened is that the rising profit share went to the financial sector and has been used to boost City pay and bonuses rather than used for new investment. In the bracing climate, few groups of workers are able to garner the full fruits of their labour: Premier League footballers are one, investment bankers another.
That doesn’t actually work. Bankers certainly are on PAYE. So their incomes (yes, and their bonuses) is part of the labour income, not the profit share.
Sadly, we’ll have to wait for the paper to be published before we can see what they’ve done. By which time the “profits are screwing the worklers” meme will be widespread.