The Importance of Labor Unions

Today, many workers are joining or want to join labor unions. But many employers fight workers’ efforts to organize a union in their workplaces by intimidating, harassing, or threatening them. Workers reap substantial benefits from unionization. Unions raise the wages of their members by 10 to 15 percent. Among full-time wage and salary workers, union members had median weekly earnings of $1,263 in 2023, while nonunion workers had median usual weekly earnings of $1,090. Unions also improve fringe benefits and workplace procedures, such as retirement plans, workplace grievance policies, and predictable scheduling. These workplace improvements contribute substantially to middle-class financial stability and workers’ well-being.

Selected Characteristics of Union Members

According to the Bureau of Labor Statistics, in 2023, the unionization rate for women was 6.6 million (9.5 percent). For men it was 7.8 million (10.5 percent). Among the ethnicity groups, Black workers continued to have a higher union membership rate, (11.8 percent) than white workers (9.8 percent), Asian workers (7.8 percent), and Latino workers (9.0 percent). By age, workers ages 45 to 54 had the highest union membership rate, at (12.6 percent). Younger workers, ages 16 to 24, had the lowest union membership rate, at (4.4 percent). The union membership rate for full-time workers (10.9 percent) was more than double that for part-time workers (5.2 percent).

Union Membership by State

In 2023, 31 states and the District of Columbia had union membership rates below the U.S. average (10.0 percent), while 19 states had rates above it. Eleven states had union membership rates below 5.0 percent. South Carolina had the lowest rate (2.3 percent). The next lowest rates were in North Carolina and South Dakota (2.7 percent and 3.6 percent, respectively). Two states had union membership rates over 20.0 percent: Hawaii (24.1 percent) and New York (20.6 percent).

Health Care for Unionized Workers

In a study by the National Library of Medicine, union workers are more likely to have health insurance coverage, are more likely to have a regular care provider, and have a lower share of out-of-pocket costs than nonunion workers. Union workers are approximately 10 percent more likely to have health insurance coverage, 6.8 percent more likely to have a regular care provider, visit office-based providers 31 percent more often than non-union workers, and have an out-of-pocket expenditure share approximately 11 percentage points lower than non-union workers.

Unions Importance to the Economy

On Aug. 28, 2023, the U.S. Treasury Department issued a Fact Sheet on the role that labor unions play in the American economy, stating:

“Unions help create a fairer economy by benefiting all demographic groups. By encouraging egalitarian wage practices, unions serve to reduce race and gender wage gaps. The diverse demographics of modern union membership mean that the benefits of any policy that strengthens today’s unions would be felt across the population. In addition to supporting the middle class, unions contribute to economic growth and resilience.” In closing, unions have made life better for all working people by helping to pass laws ending child labor, establishing the eight-hour workday, protecting workers’ safety and health, and helping to create a Social Security network, unemployment insurance, and establish the minimum wage. ■

Sources: U.S. Department of Labor, Bureau of Labor Statistics, Union Members in 2023, U.S. Department of Treasury Fact Sheet, August 28, 2023, and National Library of Medicine.