The new, unequal world of superstar companies: While they generate gigantic profits, the wage share of the employed declines

Tech giants generate enormous profits while the wage share of the employed stagnates. This report analyzes the growing gap between capital and labor, caused by scalable digital business models and low job creation.

The new, unequal world of superstar firms: While they generate gigantic profits, the labor share of income is falling

Zurich, October 11, 2026 – A report highlights the growing discrepancy between the profitability of tech giants and the development of the labor share of income. While a few so-called superstar firms generate hundreds of billions of euros, their business activities contribute little to significant job creation. This development deepens the rift between capital and labor and raises questions about the distribution of wealth in globalized economies.

The core of the phenomenon lies in the inherent scalability of digital business models. Companies such as the large tech corporations can achieve enormous reach and thus disproportionate profits with relatively few employees. Their products and services are often globally applicable without requiring a corresponding increase in the workforce in the respective markets. As a result, profits primarily reach shareholders and the already well-paid specialists within the companies, while the broad mass of the workforce hardly benefits. The consequence is a stagnating or even falling labor share—the portion of national income that goes to labor.

Global differences in labor market dynamics

Interestingly, a contrary trend is evident in Switzerland. There, companies—even large players—continue to contribute to robust job creation, and the labor share remains comparatively stable. This could be due to structural differences in the economic landscape, a stronger anchoring in industry, or different labor market regulations. Such national peculiarities illustrate that the effects of digitalization and globalization are not the same everywhere and that local framework conditions play a decisive role.

For prospective MBA and Master's students, these developments are of high relevance. Understanding the mechanisms that lead to this unequal distribution is essential for future leaders. The goal is to develop business models that not only maximize shareholder value but also make a positive contribution to social value creation and do not erode labor markets. This requires a deep understanding of economics, social sciences, and often ethical implications.