(NEW YORK CITY) - Workers’ share of the New York City economy has decreased in the last 25 years while Capital-Owners' share in the City grown to a higher point than the country as a whole, an Economist in The New School found. In a new report, Mohamed Obaidy - the Associate Director of The New School’s Center for New York City Affairs, found business owners have benefitted more than Workers from the increase in Worker productivity over the last quarter-century - and that by 2024 capital was reaping a higher percentage of the New York City economy than it was in New York State or in the country as a whole. “Over the last two decades, Labor’s share of economic output declined, while the capital share increased,” reads the report, titled: Labor, Capital, and Inequality in New York: A Functional Income Approach. “This pattern is visible nationally, but it is more pronounced in New York State. A smaller share of economic output is being paid out in the form of wages, salaries and benefits, while a larger share is accruing to capital income, or profit.” In total, Workers’ share of economic output - measured by Worker compensation of wages and benefits - declined from just under 56% in 2001 to just over 49% in 2024. Over the same period, Capital’s share - measured by gross operating surplus that combines profit and other factors - increased from just under 40% to 46%.  

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