Sunday, February 5, 2012

UK Corporate Profits vs Employee Compensation

Last month we examined corporate profits and employee compensation in the United States. This month we will look at corporate profits (Gross Operating Surplus) and employee compensation (COE) in the United Kingdom: Britain, Scotland, Wales and Northern Ireland.

All of the figures are from the income side of the gross domestic product of the United Kingdom.

The following chart shows the average ratio of employee compensation to corporate profits. The ratio has stayed around 2:1 meaning two thirds of GDP goes to pay salaries and employee benefits and one third goes to corporate profits.

It is interesting to note the ratio for the UK has been relatively stable for the period of the chart. The US chart show a decline in the ratio.

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