Peaceful Governance Institute flags rising capital share across U.S. industries

Peaceful Governance Institute released its first report on technological change in the United States, using data across 18 industries to track how capital, labor and productivity have shifted from 2003 to 2024. The report argues the trends warrant new policy responses as AI and automation reshape jobs, pay and industry output.

Why it matters: - The report says the U.S. economy is moving toward higher capital intensity, with labor’s share of output declining and capital’s share rising across industries from 2003 to 2024. - The findings point to a workforce shift that favors workers with more education and higher-skilled occupations. - Peaceful Governance Institute says the trends matter because AI and other technologies could accelerate job displacement unless policy adapts.

What happened: - Peaceful Governance Institute released its first report on technological change in the United States on Sept. 1, 2026. - The report is part of the public charity’s initiative, “Stabilizing the Economy in the Age of AI.” - The report is available as a free download here. - Edward Uechi, executive director of Peaceful Governance Institute, said new policies are needed to help millions of Americans stay resilient in the 21st century economy.

The details: - The report establishes a national baseline on changes to capital, labor and productivity across 18 U.S. industries. - It covers industries including agriculture, construction, manufacturing, retail trade, leisure and hospitality, wholesale trade and finance and insurance. - The report describes growing and declining occupations across the economy. - Office, sales and production occupations declined over the 2003-2024 period. - Management, business and financial operations, professional roles, and transportation and material moving occupations were in demand. - The report says a more productive period occurred in the 1990s and early 2000s. - Policymakers should begin to worry about wholesale trade, retail trade and finance and insurance because those industries generate high output in the U.S. economy. - Current trends suggest trade and finance warrant monitoring because capital share has been increasing relative to labor share.

Between the lines: - The report frames AI as part of a longer-run shift in production, not just a short-term labor market shock. - The focus on trade and finance suggests the institute sees the most immediate pressure in sectors that combine high output with rising capital intensity. - Uechi said the organization wants incentives that raise productivity while controlling job losses, signaling a policy approach aimed at balancing efficiency gains with labor protection.

What's next: - Peaceful Governance Institute says its recommendations are designed to improve efficiency in labor-intensive industries, slow or reverse current trends in trade and finance, and move low- and middle-skilled workers into higher-paying jobs. - The full report and recommendations are available in the free download linked above. - Peaceful Governance Institute says the report is intended to contribute to the broader debate over whether AI and other technologies will take jobs away from people.

The bottom line: - The report argues the U.S. labor market is already shifting toward capital-heavy production, and policymakers should act before AI deepens the gap between output growth and job growth.