Capital v Labour

The production account can also be used to show changes in the share of income accruing to labour (i.e. compensation of employees) compared with the share accruing to capital (i.e. profits, defined as the gross operating surplus of non-financial and financial corporations). Graphs 30.4 and 30.5 show how the shares of total factor income accruing to compensation of employees and to profits have changed since 1965–66. (Total factor income is equal to the sum of compensation of employees, gross operating surplus and gross mixed income.)

The highest recorded value of the compensation of employees (COE) share of total factor income was 62% in 1974–75. The COE share in 2010–11 was 53%, steady with the previous year (53%), and one of the lowest levels recorded in the time series presented. The profits share of total factor income has been growing steadily since 1998–99. In 2010–11, the profits share was 28%, the second highest share recorded; the highest was in 2008–09 (29%).




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