Amazon Workers Rely Heavily on Federal Assistance Amid Wider Labor Share Decline

A new report from the Government Accountability Office (GAO) reveals that Amazon's workforce relies heavily on federal assistance programs, highlighting the widening gap between corporate profits and worker wages. According to the GAO, nearly 12,000 Amazon employees in 11 states rely on the Supplemental Nutrition Assistance Program (SNAP), while over 11,000 are on Medicaid. This marks a significant increase from 2020 levels, with the number of Amazon employees on these programs nearly tripling.

The trend is part of a broader decline in labor share, with workers receiving just 52.8% of economic output. Meanwhile, corporate profits have risen to 15.85% of GDP, while employee compensation has fallen from 66.6% to 61.9%. Economists warn that this trend carries significant risks for the economy and society.

Amazon disputes the interpretation of the GAO data, arguing that it focuses on raw numbers rather than percentages. However, experts point out that many Americans using safety net programs are already working full-time yet still earn too little to cover basic needs.