For corporate profits over worker wages, the gap has never been wider

Andrea Riquier, USA TODAY

Wed, February 18, 2026 at 5:41 AM GMT+9 2 min read

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An economic measurement that compares corporate profits to employee compensation has hit the highest on record back to the end of World War II, further underscoring widespread discontent among all kinds of Americans.

The chart below, produced by KPMG economist Diane Swonk, shows the percent of gross domestic product represented by corporate profits, versus the amount that accrues to workers’ wages. It’s a stark visual similar to the “K-shaped” economy, which shows the fortunes of “haves” heading up and those of the “have-nots” cratering.

The past few decades “have really not been great for workers,” Swonk said in an interview with USA TODAY, noting that “it’s gotten progressively worse. You do get to these tipping points.”

It’s a question she wrestles with, she said, because official data seem to paint a picture of a reasonably healthy economy, even as measures of confidence plunge and Americans feel increasingly divided and, in many cases, bitter.

There is a record gap between employee compensation and corporate profits as a share of GDP.

**Does the U.S. have a ‘K-shaped economy’? **What it means for you.

Some people may wonder why they’re not able to get ahead, even after doing everything they were told to do, like go to college. Others may resent not being as well-off as previous generations were. Still, others may simply struggle with trying to make ends meet every day.

“That’s how we get to these narratives of mistrust,” Swonk said. “There is a sense of betrayal.”

The American economy feels so bleak that it’s hard to offer policy prescriptions, she said. One example is the subsidies for buying insurance that were enacted during the COVID-19 pandemic and lasted for a few years before expiring in 2025. Many Americans came to depend on the subsidies, which were simply patches over the gaps in a health care system that may feel duct-taped together, and not really working for patients, providers or insurers.

Despite not having many suggestions, Swonk still feels compelled to document the numbers that suggest not all is well. “I think it’s important for people to understand what’s really going on because, you know, the economy isn’t the stock market.”

This article originally appeared on USA TODAY: Corporate profits v. worker wages: a record-high gap

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