Amazon workers on food stamps have tripled despite its record revenue—and it’s just the latest evidence of the new economy of shrinking labor shares | Fortune
“These are families that are really barely able to make ends meet,” one policy expert said. “And yet they are working, and they are working a lot.”
Soaring Corporate Profits, Shrinking Labor Shares
Corporate earnings have surged while workers’ share of national wealth, known as the labor share, has continued to fall. Since the turn of the millennium the S&P 500 index has risen roughly 600%, yet wages have grown only about 12.5% after accounting for inflation.
The Human Cost of Shrinking Labor Shares
A recent Government Accountability Office (GAO) analysis shows the impact of this widening gap on Amazon’s workforce. The report indicates that 12,346 Amazon employees receive Supplemental Nutrition Assistance Program (SNAP) benefits and 11,338 are enrolled in Medicaid. Those figures are almost three times higher than the numbers reported in a similar 2020 GAO study. In the same period Amazon’s annual profit climbed from $11.6 billion to $77.7 billion, while the company’s 2025 revenue jumped 12% year‑over‑year, rising from $638 billion to a record $717 billion.
Amazon’s Response to the GAO Report
Amazon spokesperson Rachael Lighty told Fortune that the GAO’s conclusions are “wrong” and that focusing on raw headcounts rather than percentages is misleading. Lighty emphasized that Amazon’s compensation ranks among the best in the sector, noting that regular full‑time staff can enroll in health coverage on day one for a $5 weekly premium with $5 copays for employee‑only plans. She added that 74% of Amazon’s regular full‑time workers have signed up for the company’s health plan, a rate that exceeds the 65% private‑sector enrollment figure for full‑time employees. Lighty challenged other large retailers to match Amazon’s day‑one comprehensive health benefits.
Economic Inequality Trend
The GAO findings mirror trends at other major firms. Walmart and FedEx reported similar rises in the number of employees relying on federal assistance, and rideshare and delivery platforms saw comparable increases among their drivers. Kathryn Larin, GAO’s director for education, workforce, and income security issues, explained that most individuals using safety‑net programs are actively employed, many full‑time, yet still fall below the SNAP eligibility threshold of roughly 130% of the poverty line. Larin said the data highlight a large population of families with persistently low incomes despite steady employment.
Impact on Low‑income Families
Diane Swonk, chief economist and managing director at KPMG, warned that a shrinking labor share hides an ongoing affordability crisis for many Americans. KPMG’s February research showed corporate profits as a share of U.S. GDP have risen from 8% in 1982 to 15.85% today, while employee compensation’s share of GDP fell from 66.6% to 61.9% over the same span. Swonk described the shift as a “revolution chart” that underscores how rising inequality can fuel social and economic instability.
A 50‑year Trend
Anna Stansbury, an assistant professor of work and organization studies at MIT Sloan, traced the phenomenon back about five decades. Union representation among U.S. workers has dropped from 20.1% in 1983 to 10.0% in 2025, limiting collective bargaining power for wages and benefits. Stansbury also pointed to the “fissuring” of the workplace—where employers increasingly rely on gig workers, subcontractors, and other non‑direct hires—as a key driver of the declining labor share.
Workplace Fissuring Trend
Historically, a typical employer‑employee relationship involved direct employment, such as a bank hiring its own janitor. Today, large firms often contract out functions: security guards are employed by third‑party firms, delivery drivers work as independent contractors, and similar arrangements are common in retail and banking. This shift away from direct employment has contributed to the erosion of workers’ share of economic gains, even as corporate profits continue to climb.
Source: fortune.com · 2026-09-13