U.S. labor share of GDP falls to 53.8% in Q3 2025 as Barkin flags restrained hiring and modest job gains

In the third quarter of last year, U.S. workers received 53.8% of GDP through wages and salaries, the lowest share since the BLS labor share series began in 1947. Over the same period, labor productivity registered its fastest increase in two years, while employers added 50,000 jobs last month and the unemployment rate eased to 4.4% amid subdued hiring. Richmond Fed President Tom Barkin highlighted that firms are leaning on productivity gains, keeping hiring modest even as GDP and corporate profits expand.