In view of the increased interest in the labor share in recent years, we are presenting detailed information on how the U. Bureau of Labor Statistics (BLS) estimates this measure.
The material that follows reviews the BLS methodology for estimating the labor share, discusses the uses and limitations of this measure, and suggests potential improvements in that methodology.
The employee compensation series also includes supplements to wages and salaries.
These supplements are obtained mainly from government survey data and government administrative data, as well as from purchased data.
In this article, we focus on the nonfarm business sector measure, which excludes general government, nonprofit institutions, private households, the Armed Forces, and farms.