Despite Tight Job Market\, Labor Force\'s Income Is Squeezed

Despite Tight Job Market, Labor Force’s Income Is Squeezed

Workers’ slice of the pie has been shrinking, confounding economists

WASHINGTON—With U.S. unemployment near lows seen a half-century ago and labor so scarce that companies routinely complain of shortages, you might think American workers, with more bargaining power, are getting a bigger slice of the nation’s economic pie.

They’re not.

Labor’s share of domestic income has been declining since 1970 and has barely...