Americans' income from work is substantially smaller than it used to be. The Washington Post's Lydia DePillis today highlights a Wells Fargo report that shows Americans' non-labor income is growing, while their income from jobs is diminishing — in the 1980s, nearly 60 percent of American income was from work. Today, just over half is.
But then, a weak economy has also played a big role in this shift away from work income. Unemployment is still elevated, and an oversupply of labor for the available jobs has helped wages remain flat. The downturn also increased people's reliance on unemployment insurance (included in "supplements to wages and salaries") and transfers like food stamps.
Income from work is shrinking. Here's where Americans are getting more of their income now. - Vox