The prospect of a significant surge in US union membership is sending ripples across the Atlantic, with potential economic implications for British workers too. A new report from the Economic Policy Institute suggests that tripling union density in the United States could lead to substantial pay increases and a shift of $1.2 trillion annually to workers. If achieved, this would translate to an average annual rise of £6,500 (approximately) per worker, based on current exchange rates.
Historically, US union density was three times higher than it is today – 30% in the 1950s compared to around 10% now. The decline began in the 1960s and accelerated in the 1980s, with subsequent decades seeing a continued fall. Public approval for labour unions remains robust, however, with over 68% of Americans holding favourable views in 2025.
The institute's report points to aggressive anti-union tactics by corporations and new legislation as contributing factors to the decline in union density. This downward trend has led to significant wealth and income inequality. Since 1979, worker productivity in the US has grown 2.7 times faster than worker pay, a disparity that former US Secretary of Labour Robert Reich links to the erosion of the middle class as wealth accumulates among the rich. In fact, the wealthiest 0.1% of Americans now own more than five times the combined wealth of the entire bottom half of the country.
The report highlights not only wage increases but also the broader impact of collective bargaining agreements on non-union workers. Wage premiums associated with union membership typically range between 15% and 20%, though these figures may be underestimated due to current low union density. Liz Shuler, president of the AFL-CIO, underscores the everyday struggles of workers, citing rising rents and grocery costs that outpace stagnant paycheques.
To increase union membership, the report proposes a 'roadmap' that includes legislative changes such as passing the Protecting the Right to Organize Act and the Public Service Freedom to Negotiate Act. Other proposals include ensuring annual raises for newly unionised workers and mandating collective bargaining in companies where the CEO-to-worker pay ratio exceeds 100:1. Revoking 'right to work' laws and restrictions on public sector bargaining alone could increase US union density from 9.9% to 14.4%, according to the report.