The profits share decreased by 0.4 percentage points in the June quarter 2012 while the wages share increased by 0.2 percentage points over the quarter.
The wages share peaked at around 63 per cent in 1974 while the profit share bottomed at just over 15 per cent at the same time.
The wages share and the profits share of total factor income usually exhibit inverse movements and can be subject to large quarterly fluctuations.
What is measured
The income measure of gross domestic product (GDP) can be broken down into total factor income plus taxes less subsidies.
Total factor income is that part of the cost of producing GDP which consists of gross payments to factors of production (labour and capital).
The wage share is the total value of income from labour as a percentage of total factor income.
The profit share is the gross operating surplus (GOS) of corporations as a percentage of total factor income. GOS is a measure of the surplus accruing to owners of capital from processes of production.
Related statistics in this bulletin
- 3.1 Gross domestic product
- 3.2 Non-farm gross domestic product
- § 3.4 Household debt and household saving ratios
- 3.5 Labour productivity
- RBA, Bulletin
- Treasury, Budget papers
- OECD, Economic outlook
- NAB, Australian outlook and research
- Access Economics, Business outlook