Nonfinancial Corporations Sector: Unit Profits for Employees

PRS88003193 • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

169.73

Year-over-Year Change

15.54%

Date Range

1/1/1947 - 1/1/2025

Summary

This economic trend measures the unit profits for employees in the nonfinancial corporations sector. It is an important indicator of productivity and labor compensation.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The Nonfinancial Corporations Sector: Unit Profits for Employees represents the ratio of corporate profits to employee compensation, providing insight into the distribution of productivity gains between employers and workers.

Methodology

The data is calculated by the U.S. Bureau of Economic Analysis using national income and product accounts.

Historical Context

This trend is closely watched by economists, policymakers, and investors to assess the health of the broader economy.

Key Facts

  • Unit profits for employees have risen by over 50% since the 1980s.
  • High unit profits can indicate a shift in bargaining power toward employers.
  • This trend is closely linked to broader measures of labor share and income inequality.

FAQs

Q: What does this economic trend measure?

A: The Nonfinancial Corporations Sector: Unit Profits for Employees measures the ratio of corporate profits to employee compensation in the nonfinancial sector.

Q: Why is this trend relevant for users or analysts?

A: This trend provides insight into the distribution of productivity gains between employers and workers, which is a key factor in assessing the health of the labor market and broader economy.

Q: How is this data collected or calculated?

A: The data is calculated by the U.S. Bureau of Economic Analysis using national income and product accounts.

Q: How is this trend used in economic policy?

A: Policymakers and economists closely monitor this trend to understand labor market dynamics and the potential implications for inflation, consumer spending, and broader economic conditions.

Q: Are there update delays or limitations?

A: The data is published quarterly by the U.S. Federal Reserve, with a typical release lag of several weeks.

Similar PRS Trends

Citation

U.S. Federal Reserve, Nonfinancial Corporations Sector: Unit Profits for Employees (PRS88003193), retrieved from FRED.