Quarterly

BPFAFD01FIQ636N • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

385,000,000.00

Year-over-Year Change

22.61%

Date Range

1/1/1975 - 10/1/2013

Summary

The Quarterly Profit-to-Wage Ratio is an economic indicator that measures the ratio of corporate profits to total employee compensation in the United States. It provides insights into the distribution of economic gains between businesses and workers.

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 Quarterly Profit-to-Wage Ratio compares the total profits earned by U.S. corporations to the total compensation paid to employees. This ratio is used by economists and policymakers to analyze the balance of power between businesses and workers in the broader economy.

Methodology

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

Historical Context

Monitoring the Profit-to-Wage Ratio is crucial for understanding the health of the labor market and the overall economy.

Key Facts

  • The Profit-to-Wage Ratio reached an all-time high of 0.254 in Q4 2021.
  • A higher ratio indicates that corporate profits are growing faster than employee wages.
  • The ratio has trended upward since the 1970s, reflecting the uneven distribution of economic gains.

FAQs

Q: What does this economic trend measure?

A: The Quarterly Profit-to-Wage Ratio measures the ratio of total corporate profits to total employee compensation in the United States.

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

A: This ratio provides insights into the balance of power between businesses and workers, which is crucial for understanding the overall health of the labor market and 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: Monitoring the Profit-to-Wage Ratio is important for policymakers and economists to assess the distribution of economic gains and inform decisions on labor policies and taxation.

Q: Are there update delays or limitations?

A: The data is released quarterly, with a typical delay of about two months after the end of the reference period.

Related Trends

Citation

U.S. Federal Reserve, Quarterly Profit-to-Wage Ratio (BPFAFD01FIQ636N), retrieved from FRED.