State of Working America: Wages 2019. We average union density data across 2015 to 2019 for each state to give a more accurate estimate of states typical unionization rates over time. Union membership was growing rapidly during this period, as more and more workers were becoming increasingly dissatisfied with their working conditions. Sources:EPI analysis of 20152019 Current Population Survey Outgoing Rotation Group (CPS-ORG) microdata for all workers ages 16 and older; Department of Labor Employment & Training Administration, Unemployment Insurance Data Chartbook. Unfortunately, many people fall through the cracks and are unable to access any private or public health insurance programs, either because their employer does not offer a health care plan or because they earn too much or too little to qualify for one of the public programs. Income is useful to examine alongside minimum wages because it gives us a picture of what the typical working household actually earns over the course of a year, not just the minimum employers are required to pay an individual worker. Tolbert, Jennifer, Kendal Orgera, and Anthony Damico. From the Bargaining Table to the Ballot Box: Political Effects of Right to Work Laws. National Bureau of Economic Research Working Paper no. Fact checked by Vikki Velasquez What Is a Labor Union? In 2015, the U.S. Justice Department agreed to end more than 20 years of government oversight of the Teamsters union citing its efforts to end corruption and connection to organized crime. 2015. Why Labor Unions Were Successful. Badger, Emily, and Alicia Parlapiano. In the four decades through 2019, low-wage workers (those at the 10th percentile of the wage distribution, that is, those who make less than 90% of all workers) saw their wages rise only 3.3% in inflation-adjusted terms, compared with a rise of 15.1% for the median worker (right in the middle of all wage earners) and 63.2% for high-wage workers (those at the 90th percentile, who make more than 90% of all workers) (Gould 2020a). Union densityis defined as the share of workers in the state who arerepresented by a union,includingunion membersand other workers who arecovered bya unioncontract,basedon the variable unionfrom EPI extracts of CPS-ORG microdata. Unions also have powerful effects on workers lives outside of work. Mass. The main goal was control of working conditions, setting uniform wage scales, or to protest the firing of a member. Center on Budget and Policy Priorities (CBPP). Sojourner, Aaron, and Jos Pacas. Kliff, Sarah. unions. Unions use their influence to increase UI eligibility, ease of access, benefit levels, and benefit duration, to the benefit of all workers, union and nonunion (Hertel-Fernandez and Gould-Werth 2020). An unofficial strike is a work stoppage by union members that is not endorsed by the union and that does not follow the legal requirements for striking. Authoritative, up-to-date data on the living standards of American workers. State of Working America Data Library. Medium-union-density states are the 17 states (including D.C.) in the middle of the union-density rankings (with union densities ranging from 8.3% to 13.3%). Key Takeaways. Therefore Idaho, Kentucky, Maine, and Montana, which expanded Medicaid in 2019, are grouped in the Expanded Medicaid category, while Arkansas, Missouri, Nebraska, Oklahoma, and Utah, which expanded Medicaid in 2020 or 2021, are listed in the Did Not Expand Medicaid category. The UI recipiency rate in each state is the share of unemployed workers who are receiving unemployment insurance benefits through the states regular UI program (i.e., not through federal emergency programs such as Pandemic Unemployment Assistance). 2018. 2018. Declining unionization across . . Low-union-density states are the 17 states with the lowest average union densities from 20152019 (all less than 8%). Furthermore, union employers are more likely to offer retirement plans and to contribute more toward those plans than comparable nonunion employers. Union density is defined as the share of workers in the state who are represented by a union, including union members and other workers who are covered by a union contract, based on the variable union from EPI extracts of CPS-ORG microdata. With rapid population growth comes rapid growth of problems. Across the states, unionization is consistently associated with higher levels of economic well-being as measured by the level of a states minimum wage, median annual income, and access to unemployment insurance benefits. 2021. Union density data are averaged across states from 2015 to 2019 to give a more accurate estimate of state unionization rates and avoiding temporary single-year changes. Unions also have powerful effects on workers' lives outside of work. The first two failed due to different reasons, while the AFL succeeded. Labor unions, in addition to abolishing child labor, played a role in that. Current Population Survey Extracts, Version 1.0.21, https://microdata.epi.org/. We do not include data beyond 2019 in our averages, to avoid any potential distortions related to the 20202021 COVID-19 pandemic and ensuing recession. In theprivate sector, industries with high union rates include transportation and warehousing, utilities, motion pictures, and sound recording. In low-union-density states, fewer than one in five workers who applied for UI benefits received them, compared with nearly two in five in high-density states. Jobs were being created as fast as people were willing to fill them. Credit: isu.pub Historically, unions have been formed to ensure fair wages, benefits, and working conditions for their members. Bureau of Labor Statistics (BLS). 2021. For the purposes of this analysis, we divide the 50 U.S. states, plus the District of Columbia, into three groups based on their level of union density. Unionization has a range of positive economic impacts in addition to decreasing wage inequality and closing gender and race wage gaps. Unions provide workers with better benefits, including paid leave and health care. Figure E highlights the positive relationship between unionization and UI recipiency rates. Her subject-matter expertise includes wealth management, asset management, hedge funds, mutual funds, exchange-traded funds, defined-contribution and pension plans, compliance, regulation, and ultra-high-net-worth individuals and families. What is a labor union and when were they first formed? Workers and employers. ", Economic Policy Institute. We look at legislation restricting voting and find that there is a strong correlation between voting restrictions and low union density. Unions have also historically helped and continue to help close wage gaps for Black and Hispanic workers (Farber et al. Fact checked by Kirsten Rohrs Schmitt Unions are voluntary associations of workers formed to improve the negotiating leverage of their members through collective bargaining. National Compensation Survey: Employee Benefits in the United States, March 2020. Medium-union-density states are the 17 states (including D.C.) in the middle of the union-density rankings (with union densities ranging from 8.3% to 13.3%). You can learn more about the standards we follow in producing accurate, unbiased content in our. These include white papers, government data, original reporting, and interviews with industry experts. Many states have made the application and eligibility process difficult in order to cut costs by reducing the number of successful claims (Badger and Parlapiano 2020; Stewart 2020; Wamsley 2020). Keisler-Starkey, Katherine, and Lisa N. Bunch. Updated October 18, 2021. His research has been shared with members of the U.S. Congress, federal agencies, and policymakers in several states. Newsroom In this report, we have sought to demonstrate that the benefits of unionization extend far beyond the workplace. Paid sick leave allows workers to take time off when they are sick without worry over loss of income, while paid family and medical leave allows workers to take extended time off to address a serious health condition, to care for a new child, or to care for an ill family member (Gould 2018). To fully understand how unions intersect with health care coverage, we examinealongside the uninsured ratewhether a state has expanded Medicaid under the Affordable Care Act (ACA) to broaden eligibility to more low-income people. 2016. The US Bureau of Labor Statistics most recent survey indicates that union membership in the US has risen to 12.4% of all workers, from 12.1% in 2007. Kodjak, Alison. Labor unions have a long history in the United States. Critics maintain that union contracts make it more difficult for a company to fire unproductive employees, and that they increase long-term costs which decreases competitiveness. The Union Effect in California #3: A Voice for Workers in Public Policy. Arkansas, Missouri, Nebraska, Oklahoma, and Utah expanded Medicaid in 2020 or 2021 and so they are listed in the Did Not Expand Medicaid category to be consistent with the fact that we report union density data from 2019 and earlier. We average union density data across 2015 to 2019 for each state to give a more accurate estimate of states typical unionization rates over time. It's why union boosters were so excited when the labor movement seemed to be finally awakening . The data we analyze across a wide range of indicators support the notion that through advocating for higher wages and better benefits for members and, more generally, by mobilizing and building grassroots coalitions and acting as one of the main countervailing forces against rising corporate concentration, unions act as a channel for producing and cementing positive economic, health, and democratic outcomes in the communities in which they are active. The ripple effect, in which employers give nonmandated raises to maintain a similar wage structure after a change in the wage floor (through minimum wage legislation, for example), also has an outsized impact on workers (Wicks-Lim 2006). A recent report by the National Employment Law Project estimated that since 2012, Fight for $15 has helped raise wages for nearly 26 million workers, winning over $150 billion in additional income (Lathrop, Lester, and Wilson 2021). Almost all union workers (94%) have access to health insurance, compared with just 67% of nonunion workers (Gould 2020b). Flexible Wages, Bargaining, and the Gender Gap. Quarterly Journal of Economics. Higher incomes allow workers and their families to be less dependent on government benefits, and unions also help workers win benefits such as health insurance from their employers. Labor unions continue to play a major role in workers' rights and the economy of the United States. Figure B depicts the geographic variation of union density and 2021 state minimum wages. 2021). In this report, we document the correlation between higher levels of unionization in states and a range of economic, personal, and democratic well-being measures. Says Floridas Unemployment System Was Designed to Create Pointless Roadblocks. National Public Radio (NPR), August 6, 2020. The second category of well-being we examine is personal well-being, which we define as an individuals physical and mental health. We use a simple average of UI recipiency rates within the high-, medium-, and low-union-density state groupings. We look at the relationship between union density and three indicators related to economic security and stability: the minimum wage, median income, and the unemployment insurance (UI) recipiency rate. See Table 1 for more detail about these groupings. Union Coverage (data set). Critics argue, among other things, that unions are anti-employer and that union contracts make it more difficult for companies to fire unproductive employees. Sources:EPI analysis of 20152019 Current Population Survey Outgoing Rotation Group (CPS-ORG) microdata for all workers ages 16 and older; Keisler-Starkey and Bunch, Health Insurance Coverage in the United States, U.S. Census Bureau, September 2020. A labor union is an association of workers formed to negotiate collectively with an employer to protect and further workers' rights and interests. When union density is high, nonunion workers benefit, too, because unions effectively set broader standardsincluding higher wageswhich nonunion employers must meet to attract and retain the workers they need (Rosenfeld, Denice, and Laird 2016; Mishel 2021). The national median income was $69,720 in 2019. The authors thank William E. Spriggs, whose research inspired this report; John Schmitt for his thoughtful input; and Daniel Perez for his research assistance. Economic Policy Institute, September 2021. Photo by - slideserve.com. Key Facts About the Uninsured Population. "Union Members Summary. ", U.S. Bureau of Labor Statistics. Robert Kelly is managing director of XTS Energy LLC, and has more than three decades of experience as a business executive. See Table 1 for more detail about these groupings. Labor unions benefit their members by negotiating better pay, benefits, and working conditions. February 10, 2020. State minimum wages establish a wage floor for the minimum hourly wage employers must pay workers in that state. U.S. Census Bureau. Council Passes One of the Nations Most Generous Paid Family Leave Bills. PBS NewsHour, December 20, 2016. When comparing the failures of labor unions in the past to the present day, some of the same risks present themselves. Sojourner and Pacas (2018) also find that unionized workers use fewer public benefits. In 2019 in the U.S., about two-thirds of the population had health insurance coverage through private sources, including employer-based (Keisler-Starkey and Bunch 2020, Table HIC-4_ACS). Unions enable workers to come together as a powerful, collective voice to communicate with management about their working terms and conditions - and to push for safe, fair and decent work. This is due in part to workers seeking better pay and conditions in the wake of the pandemic, a tight labor market, and younger generations embracing union membership. More than nine in 10 unionized workers have access to employer-sponsored health benefits, compared with just 68% of nonunion workers, and union employers contribute more to their employees health care benefits (EPI 2021d). Research has found that Medicaid expansion has improved access to health care; improved health outcomes, including fewer premature deaths; lowered uncompensated costs; bolstered financial security; boosted economic mobility; and more (CBPP 2020). Recent research has found that unionized workers are 19 percentage points more likely to apply for and receive benefits than nonunionized workers after accounting for worker, job, and state characteristics (Hertel-Fernandez and Gould-Werth 2020). Notes: Idaho, Kentucky, Maine, and Montana expanded Medicaid in 2019 and so are listed under the Expanded Medicaid category. Sources: EPI analysis of 20152019 Current Population Survey Outgoing Rotation Group (CPS-ORG) microdata for all workers ages 16 and older; Kaiser Family Fund, Status of State Medicaid Expansion Decisions: Interactive Map, September 8, 2021. Medium-union-density states are the 17 states (including D.C.) in the middle of the union-density rankings (with union densities ranging from 8.3% to 13.3%). Labor unions have a long and colorful history in the United States. However, union density levels across the country are not as high as they could be. The average minimum wage in the high-union-density states is $3.31 higheror more than 40% higherthan in the low-union-density states. The Service Employees International Union (SEIU), for example, has had a crucial role in the successful national Fight for $15 campaign (Greenhouse 2015). As with the unemployment insurance system, the Medicaid program has broad federal guidelines but is administered by states, with a 2012 Supreme Court decision ruling that Medicaid eligibility and expansion could be decided by states. In 2021, non-union workers had median weekly earnings that were 83% of earnings for workers who were union members, according to research from the Bureau of Labor Statistics. 25313, November 2018. https://doi.org/10.3386/w25313. The labor movement in the United States grew out of the need to protect the common interest of workers. We know that unions promote economic equality and build worker power, helping workers to win increases in pay, better benefits, and safer working conditions. 2018. Since relative pay plays an important role in wage setting, minimum wages also have an indirect effect on wages above the minimum, by raising the base of comparison for higher earners (Spriggs and Klein 1994). Evidence from Correlates of State Legislatures Occupational Shares. IZA Discussion Paper no. A Winning Idea: Medicaid Expansion Prevails in Idaho, Nebraska, and Utah. NPRs All Things Considered, November 7, 2018. See Table 1 for more detail about these groupings. Brown, Jenny. Overview Labor unions arose in the nineteenth century as increasing numbers of Americans took jobs in factories, mines, and mills in the growing industrial economy. Investopedia requires writers to use primary sources to support their work. For example, many claim that unions are responsible for the decline of the U.S. auto industry. Some unions have not been above using strong-arm tactics to protect their territories. Yet many states continue to take actions that disproportionately disenfranchise people of color (Johnson and Feldman 2020). The right to vote is a core tenet of our democracy, won and enshrined after years of sustained protest and activism. Gould, Elise. 2020. Banks, Nina. Union density is defined as the share of workers in the state who are represented by a union, including union members and other workers who are covered by a union contract, based on the variable union from EPI extracts of CPS-ORG microdata. In the same way unions give workers a voice at work, with a direct impact on wages and working conditions, the data suggest that unions also give workers a voice in shaping their communities. Hersh, Adam S. 2021. Many states and localities are beginning to address this inequity by passing laws requiring employers to provide paid sick leave. High-union-density states are the 17 states with the highest average union densities from 20152019 (greater than or equal to 13.5%). Derenoncourt, Ellora, and Claire Montialoux. Sources: EPI analysis of 20152019 Current Population Survey Outgoing Rotation Group (CPS-ORG) microdata for all workers ages 16 and older; U.S. Census Bureau, Historical Income Tables: Households, Table H-8, accessed August 2021. Minimum Wages and Racial Inequality. Quarterly Journal of Economics 136, no. The United States Department of Labor released a report last week that chronicled the continued decline of the American labor movement in 2019. We do not include data beyond 2019 in our averages, to avoid any potential distortions related to the 20202021 COVID-19 pandemic and ensuing recession. High-union-density states are the 17 states with the highest average union densities from 20152019 (greater than or equal to 13.5%). 2020. 2015). Increased government revenue and decreased government spending. As Figure D shows, high-union-density states had an average median income about $6,000 higher than the national average. Figure A depicts the data from Table 1 in map form. Interactive tools and videos bringing clarity to the national dialogue on economic inequality. Updated February 2021. (Note that D.C.which is part of the medium-union-density group in other chartsis not included in the voter restrictions data.) In this report, we categorize union density as the share of workers in a state who are members of a union or covered by a collective bargaining agreement. 2021. The American Unemployment System Is Broken by Design. Vox, May 13, 2020. Labor Organizations and Unemployment Insurance: A Virtuous Circle Supporting U.S. Workers Voices and Reducing Disparities in Benefits. Much of their equality-promoting influence occurs through their ability to reduce class-based inequity in politics and public policy. Buchmueller, Thomas C., and John DiNardo. Sustained trade union . Union members have better job safety protections and better paid leave than non-union workers, and are more secure exercising their rights in the workplace. https://doi.org/10.1093/qje/qjab026. High-union-density states are the 17 states with the highest average union densities from 20152019 (greater than or equal to 13.5%). We average union density data across 2015 to 2019 for each state to give a more accurate estimate of states typical unionization rates over time. Proponents maintain that unions result in better wages, benefits and working conditions for workers. 2021e. 4: 957979. This analysis looks at restrictions passed by states from 2011 to 2019. In March 2021, after Georgia passed voter suppression bill SB 202, AFL-CIO President Richard Trumka wrote that voter suppression laws were aimed at silencing working people of color across the state (AFL-CIO 2021). (Note that we are intentionally analyzing only 2019 data to avoid distortions due to the pandemic economy and legislative changes, most notablythe creation of several temporary, pandemic-related federal enhancements to the UI system. Labor unions benefit their members by negotiating better pay, benefits, and working conditions. Notes: Union density is defined as the share of workers in the state who are represented by a union, including union members and other workers who are covered by a union contract, based on the variable union from EPI extracts of CPS-ORG microdata. Hoffas son and namesake, James Hoffa, served as general president of the Teamsters from 1998 to 2022. This wage advantage is known as the union wage premium. But unions dont just help union workersthey help all workers (Bivens et al. But unions are complicated, multifaceted organizations straddling markets and politics. Sojourner and Pacas (2018) find that union membership yields a positive net fiscal impactor, to put it simply, unionized workers have more income and therefore pay more taxes. Notes: Union density is defined as the share of workers in the state who are represented by a union, including union members and other workers who are covered by a union contract, based on the variable union from EPI extracts of CPS-ORG microdata. Voter restriction bills are more likely to pass in low-union-density states than in high-union-density states, Number of high-, medium-, and low-union-density states that have passed restrictive voting laws, 20112019, Program on Race, Ethnicity, and the Economy, Economic Analysis and Research Network (EARN), Health Insurance Coverage in the United States, Status of State Medicaid Expansion Decisions, Status of State Medicaid Expansion Decisions: Interactive Map. See related work on Program on Race, Ethnicity and the Economy (PREE), Health, Unions and Labor Standards, and Wages, Incomes, and Wealth. Moore, Kyle K. 2021. Notes: Minimum wage data are current as of 2021. States Made It Harder to Get Jobless Benefits. High-union-density states are the 17 states with the highest average union densities from 20152019 (greater than or equal to 13.5%). Over 70% of the low-union-density states have not expanded Medicaid. Unions have, both historically and in the present, been central to the fight to protect voting rights. 2012. The percentage of union workers, both public and private . Building union density is not just a worker or workplace issue, but it is also a mechanism to uplift families and communities. Medium-union-density states are the 17 states (including D.C.) in the middle of the union-density rankings (with union densities ranging from 8.3% to 13.3%). Bipartisan Policy Center (BPC). 3: 13251385. We end at 2019 to avoid any potential distortions related to the 20202021 COVID-19 pandemic and ensuing recession. The Future. Nonprofit Professional Employees Union. Collective bargaining is among the methods labor unions use to advance the interests of their members. Union density by state, 20152019 average, Average state minimum wage is 40% higher in high-union-density states than in low-union-density states, Average minimum wages in high-, medium-, and low-union-density states, Median household incomes in high-union-density states are more than $12,000 higher, on average, than median incomes in low-union-density states, Average median household income (2019) in high-, medium-, and low-union-density states, Unemployed workers are twice as likely to receive unemployment benefits if they live in high-union-density states than if they live in low-union-density states, AverageUIrecipiencyrate(2019) in high-, medium-, and low-union-density states, Residents of high-union-density states are more likely to have health insurance, Averageuninsured rate(2019) in high-, medium-, and low-union-density states, 2019, The 17 highest-union-density states have all adopted the Affordable Care Acts Medicaid expansion, Number of high-, medium-, and low-union-density states that had adopted the Medicaid expansion as of 2019, High-union-density states are more likely to have passed paid leave laws, Number of high-, medium-, and low-union-density states with paid leave laws, 2019.