The market sector implies the overall economy except for public administration, education, health and social work, real estate activities, mining and quarrying and financial and insurance activities.

The labour income share had already fallen in 2022, as profits also rose faster than income from labour.

The labour income share is an important indicator that reflects who benefits from economic output. It represents the share of income earned from labour within the total income earned in the Dutch economy.

Labour income is the sum of compensation of employees plus the mixed income earned by self-employed people. In addition to labour income, total earned income consists of businesses’ operating profit.

In 2022 and 2023, the labour income share declined in manufacturing, energy supply, construction, specialised business services and rental and other business services, among other sectors. However, it increased in agriculture, forestry and fisheries, information and communication, trade, and transportation and storage.

Energy supply saw the sharpest decline in the labour income share in recent years. This was the result of a stronger increase in production value than in costs, which led to an increase in the profit ratio, the share of operating profit in gross value added, CBS said in a release.

Fibre2Fashion News Desk (DS)