Tripling US Union Membership Would Shift $1.2tn to Workers

Tripling union membership in the United States would result in a 14.5% raise for the median worker, transferring $1.2 trillion annually to workers and substantially reducing racial wage disparities, according to a report released on Wednesday. The Economic Policy Institute (EPI) report highlights that union density, or the proportion of the workforce belonging to unions, was historically three times higher than current levels. In the 1950s, union density exceeded 30%, but it began a decline in the 1960s. By the 1980s, density had fallen to 22.2%, and it continued to decrease to 10% in 2025.

The EPI analysis suggests that a significant increase in union density would not only boost worker earnings but also address wealth inequality. The report posits a direct correlation between declining union density and surges in wealth inequality. Conversely, a rise in union membership is linked to a narrowing of racial pay gaps, indicating a more equitable distribution of economic gains across different demographic groups.

The report references historical data on union density, noting figures from the 1950s and subsequent decades to illustrate the trend of decline. This historical context underscores the potential impact of reversing this trend. The EPI's findings are based on economic modeling that projects the effects of increased unionization on wages and income distribution across the American workforce.