A new report from the Economic Policy Institute (EPI) reveals that tripling US union membership could boost the median worker's pay by 14.5%, redistributing $1.2tn annually to workers and significantly narrowing racial wage gaps.
Historical Context of Union Density
Union density in the US peaked at over 30% in the 1950s, but has since declined to just 10% in 2025. This drop, driven by corporate union busting and anti-union laws, correlates with rising wealth and income inequality. Despite low density, public approval of unions remains high, with over 68% of Americans viewing them favorably in 2025, and more than 50 million workers expressing willingness to join a union.
Economic Impact of Higher Union Density
If union density tripled to 30%, the median worker would see a $7,700 annual raise, totaling over $1.2tn in additional wages per year. Over a 35-year career, this amounts to nearly $270,000. The report also highlights that union wage premiums historically range from 15% to 20%, and collective bargaining agreements lift wages for non-union workers as well. These changes could reverse one-third of the rise in inequality since 1979.
Robert Reich, former US secretary of labor, noted in the report's foreword: 'By making it harder and harder for workers to organize and bargain collectively, the rich seized more and more income and wealth, destroying the US middle class. Now the wealth of the richest Americans has exploded: the richest 0.1% own more than five times the combined wealth of the entire bottom half of the country.'
Policy Recommendations
The EPI report outlines steps to boost union membership, including passing the Protecting the Right to Organize Act and the Public Service Freedom to Negotiate Act. It also proposes annual raises for newly unionized workers and mandatory collective bargaining at companies where CEO-to-worker pay ratios exceed 100:1. Revoking 'right to work' laws and restrictions on public sector bargaining could alone increase union density from 9.9% to 14.4%.
Broader Benefits
Higher union density is linked to better public education, Medicaid expansion, and voting rights. Liz Shuler, president of the AFL-CIO, stated: 'I think this report shows that there’s no better way to fix what ails this country than to make it possible for more workers to join a union. Unions truly do have the power to transform this country. They change lives. They change the course of families. They change entire communities.'
