--- kind: index source_pdf: oregon-prosperity-council-report-june-2026.pdf fingerprint: 8ac9aef8ca1b page_range: [439, 452] breadcrumb: ["Appendix F: Technical Report — Data & Research", "Section 4: What Is Good Growth? Productivity, Labor Share & Compensation"] --- # Section 4: What Is Good Growth? Productivity, Labor Share & Compensation *Appendix F: Technical Report — Data & Research > Section 4: What Is Good Growth? Productivity, Labor Share & Compensation* -- 14 pages · [pp. 439-452](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=439) > Intro from [p. 439](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=439) Section 4: What is Good Growth? How does productivity benefit labor and compensation ## Contents | Section | PDF pages | Description | | --- | --- | --- | | [doc] [Slide 40: How does GDP growth benefit workers?](./slide-40-how-does-gdp-growth-benefit-workers.md) | [p. 440](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=440) | How does GDP growth benefit workers? Distributional Productivity Wage Level GDP Growth Labor Share effect to Gains Average Output per person Workers' cut of GDP Output per worker workers compensation hour | | [doc] [Slide 41: How do you measure labor share of GDP?](./slide-41-how-do-you-measure-labor-share-of-gdp.md) | [p. 441](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=441) | How do you measure labor share of GDP? Compensation Wages & Salaries The headline measure used throughout this analysis 42.2% 51.2% Payroll only (excludes employer-paid benefits) Wages + salaries + employer supplements as % of nominal GDP.… | | [doc] [Slide 42: U.S. labor share of GDP has steadily declined since peak in 1970](./slide-42-u-s-labor-share-of-gdp-has-steadily-declined-since-.md) | [p. 442](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=442) | U.S. labor share of GDP has steadily declined since peak in 1970 U.S. labor share: 58.1% (1970 peak) → 51.2% (2025) — a 6.9% structural decline Source: BEA NIPA Table 1.1.5 (GDP) and Table 1.12 (compensation, wages & salaries). Annual… | | [doc] [Slide 43: How much does labor share vary by industry nationally](./slide-43-how-much-does-labor-share-vary-by-industry-national.md) | [p. 443](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=443) | How much does labor share vary by industry nationally National labor share by industry, 2021 to 2024 average National Average 51.2% | | [doc] [Slide 44: Oregon has the highest labor share of GDP](./slide-44-oregon-has-the-highest-labor-share-of-gdp.md) | [p. 444](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=444) | Oregon has the highest labor share of GDP State Labor Share of GDP, 2025 | | [doc] [Slide 45: Oregon’s labor share rank has steadily increased since 2018](./slide-45-oregon-s-labor-share-rank-has-steadily-increased-si.md) | [p. 445](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=445) | Oregon’s labor share rank has steadily increased since 2018 | | [doc] [Slide 46: Two distinct mechanisms drive labor share change over time](./slide-46-two-distinct-mechanisms-drive-labor-share-change-ov.md) | [p. 446](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=446) | The slide explains that declining labor share—workers' share of GDP—results from two mechanisms. Structural mechanisms involve workers capturing smaller shares within industries due to market power, automation, offshoring, and weakened collective bargaining (U.S. manufacturing fell from 62% to 54%, 1998–2024). Compositional mechanisms involve industry mix shifts: as low-labor-share sectors like finance expand, they mechanically lower national averages (finance grew from 7.5% to 8.9% of GDP but retains only 28% labor share versus the 51% national average). | | [doc] [Slide 47: Oregon has the largest structural effect, explaining the #1 labor share rank](./slide-47-oregon-has-the-largest-structural-effect-explaining.md) | [p. 447](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=447) | Oregon has the largest structural effect, explaining the #1 labor share rank Across industries, labor has a higher share of productivity than any other state Structural effect- within industry labor share compared to national average | | [doc] [Slide 48: Not every industry within Oregon earns a larger share compared to the U.S. average](./slide-48-not-every-industry-within-oregon-earns-a-larger-sha.md) | [p. 448](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=448) | Not every industry within Oregon earns a larger share compared to the U.S. average Oregon within-industry structural residuals compared to U.S. average Structural residuals indicate if labor is a larger or smaller share of industry value… | | [doc] [Slide 49: Industry mix in Oregon also contributes to a higher labor share than U.S. average](./slide-49-industry-mix-in-oregon-also-contributes-to-a-higher.md) | [p. 449](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=449) | Industry mix in Oregon also contributes to a higher labor share than U.S. average Composition effect- industry mix contribution compared to national average | | [doc] [Slide 50: How does a growing GDP benefit workers?](./slide-50-how-does-a-growing-gdp-benefit-workers.md) | [p. 450](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=450) | How does a growing GDP benefit workers? | | [doc] [Slide 51: Labor share trend in Oregon increased comp $6,700 per worker since 1998](./slide-51-labor-share-trend-in-oregon-increased-comp-6-700-pe.md) | [p. 451](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=451) | Labor share trend in Oregon increased comp $6,700 per worker since 1998 | | [doc] [Slide 52: Future possibilities in a low employment/high productivity growth economy](./slide-52-future-possibilities-in-a-low-employment-high-produ.md) | [p. 452](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=452) | Future possibilities in a low employment/high productivity growth economy Scenario analysis where GDP grows faster (2.5% annually) than jobs (0.5% annually) through 2030 Average compensation per worker in Oregon Oregon grows labor share to… | ## See also - Parent: [Appendix F: Technical Report — Data & Research](../INDEX.md) - Source PDF: [oregon-prosperity-council-report-june-2026.pdf](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf) · open at [pp. 439-452](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=439) - Raw extracted pages: [`.extracted/pages/`](../../../.extracted/pages)