Tripling union membership in the United States could result in a 14.5% raise for the median worker, translating to an annual increase of $1.2 trillion for workers, according to a report released by the Economic Policy Institute on Wednesday. The report highlights that union density, which was over 30% in the 1950s, has fallen to approximately 10% in 2025.
Key Details
The decline in union membership has coincided with rising income inequality. The report states that since 1979, productivity has increased at a rate 2.7 times faster than wage growth. Robert Reich, former U.S. Secretary of Labor, noted that aggressive anti-union measures have contributed to this disparity, stating,
By making it harder for workers to organize and bargain collectively, the rich seized more and more income and wealth, destroying the U.S. middle class.
If union density were to rise to 30%, the median worker's annual salary would increase by approximately $7,700, amounting to nearly $270,000 over a 35-year career. The report also indicates that such a shift would help narrow racial wage gaps and improve health insurance coverage. The findings suggest that reversing the decline in union membership could significantly address the rise in inequality experienced since 1979.
Background
The report indicates that more than 50 million U.S. workers would join a union if given the opportunity, despite current union membership being at its lowest levels in decades. Public approval for labor unions remains high, with over 68% of Americans viewing unions favorably in 2025.
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Limited direct market relevance; the development matters more for labor policy and income inequality than for traded assets. Watch for further discussions on labor reforms and potential legislative changes regarding unionization in the upcoming months.