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Tripling US union membership would shift $1.2tn to workers annually – report
A new report from the Economic Policy Institute says that tripling US union membership to 30% would raise the median worker’s pay by 14.5% and move about $1.2tn a year from employers and owners to workers. The report argues this matters not only for wages, but also because stronger unions could reduce racial pay gaps, expand health coverage and reverse part of the rise in inequality that has accompanied decades of declining union membership.
The report says US union density was above 30% in the 1950s, fell to 22.2% in the 1980s and stood at 10% in 2025, even as more than 68% of Americans viewed unions favourably and more than 50 million workers said they would join one if possible. It estimates the median worker would gain about $7,700 a year, or nearly $270,000 over a 35-year career, and says ending “right to work” laws and public-sector bargaining restrictions alone could lift union density from 9.9% to 14.4%. The report links the long decline in unions to corporate anti-union tactics, restrictive laws and a widening gap between productivity and pay since 1979.
In short
- Report says stronger unions would sharply raise US worker pay
- Union decline is linked to rising inequality and weaker bargaining power
- Proposed legal changes could substantially increase union membership
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Union supporters argue that the dramatic decline in union membership from over 30% in the 1950s to just 10% today directly corresponds with stagnating wages, rising inequality, and workers receiving smaller shares of productivity gains. With 68% of Americans viewing unions favourably and over 50 million workers willing to join, there is clear demand. Removing legal barriers like right-to-work laws and public-sector bargaining restrictions would simply restore workers' collective bargaining rights, potentially narrowing racial pay gaps and expanding health coverage without harming economic growth, as evidenced by periods of strong unionization in the mid-twentieth century.
The case against
Critics worry that tripling unionisation could produce unintended economic consequences including higher business costs, reduced competitiveness, dampened job creation, or increased consumer prices. Whilst some unionisation offers benefits, a three-fold increase may exceed optimal levels. The correlation between declining unions and rising inequality doesn't necessarily prove unionisation would solve these problems; globalisation, technological change, and education gaps are significant drivers that collective bargaining alone cannot address. They argue targeted policies such as minimum wage increases or education investment would more efficiently address wage stagnation than forcing membership to unsustainably high levels.
Explained simply
Unions are organisations that workers collectively join to negotiate with employers over pay, benefits and working conditions. Union membership in the United States has declined substantially over several decades, falling from above 30% in the 1950s to around 10% by 2025, even as surveys show most Americans view unions favourably.
The significance of union membership lies in its effects on wages, working conditions and the distribution of wealth between workers and employers. Researchers and policymakers monitor unionisation trends closely because higher membership levels have historically been associated with stronger wage growth and lower inequality.
Despite declining membership numbers, millions of American workers say they would join a union if they could, indicating unmet demand for collective representation. This has prompted new analyses of how changes in union membership might affect the broader economy, fuelling ongoing debate about wages, inequality and the future of organised labour in America.
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