A new report from the Economic Policy Institute suggests that increasing union membership could result in a 14.5% wage boost for workers, addressing income disparities.
Washington DC, United States Jul 16, 2026 ALN: In 2025, the number of American workers represented by a union climbed to 16.5 million, marking the highest share of unionized workers in 16 years. This resurgence occurs against a backdrop of declining union membership that has characterized the American labor landscape for several decades. Despite this increase, the number of workers who express a desire to be part of a union is significantly higher—exceeding 50 million. This discrepancy highlights a growing demand among the workforce for union representation, driven by a desire for better wages, working conditions, and job security.
The renewed interest in unionization is underscored by a new report from the Economic Policy Institute (EPI), which suggests that tripling union membership could dramatically improve the economic circumstances of workers. The report posits that such a shift in union representation could lead to wage growth reminiscent of the post-World War II era, which was characterized by a thriving middle class bolstered by strong labor unions.
EPI President Heidi Shierholz articulated the connection between union membership and wage growth during a press conference, stating, “Right now, almost every conversation about affordability focuses entirely on prices, as if the only way to make life more affordable is to make things cheaper—but affordability depends on both prices and pay. There is one institution that has consistently proven capable of raising pay, and that is unions.” This assertion is supported by historical data showing that unionized workers typically earn higher wages than their non-union counterparts.
If union membership were to rise to 30% of the labor force, the EPI estimates that the median worker could expect a 14.5% increase in wages. This translates to an annual pay increase of more than $7,700, amounting to nearly $270,000 over a 35-year career. Cumulatively, this surge in unionization could inject an additional $1.2 trillion into the economy annually, significantly enhancing the purchasing power of American workers.
The report emphasizes that this projection may be conservative, given the current low density of union membership in the U.S. Research indicates that as union density increases, wage growth tends to accelerate even further. Furthermore, unions have a tendency to elevate wages across the entire labor market, as they create a competitive pressure on employers to maintain attractive compensation packages for non-union workers to prevent them from seeking union representation.
Beyond wage increases, broader unionization could address systemic disparities in wage distribution that have persisted over time. For instance, the EPI report notes that unionization could reduce the racial wage gap by more than a third, disproportionately benefiting Black and Hispanic workers. This would represent a significant step toward economic equity, as these groups have historically faced wage stagnation and discrimination in the labor market. Additionally, union representation could help align wage growth with productivity increases, which have outpaced wage growth for the last four decades, resulting in a growing chasm between worker contributions and compensation.
Public sentiment appears to favor unionization, with data revealing that 43% of workers in the U.S. express a desire to unionize, far exceeding the EPI's goal of tripling union membership. Furthermore, support for unions is even higher among the general populace, with 71% of Americans expressing favorable views towards labor unions. Liz Shuler, President of the AFL-CIO, highlighted this widespread support during the press conference, stating, “At this moment where trust and support in our institutions is underwater and the country is so polarized, there’s one thing that workers actually agree on.” This level of public backing suggests that there may be a fertile ground for increasing union membership and influence in the future.
However, significant obstacles remain in the path toward boosting union membership. Employers often resist unionization efforts, employing various strategies to deter workers from organizing. Additionally, loopholes in U.S. labor law can hinder the formation of unions, making it challenging for workers to secure contracts even when there is substantial interest. Recent organizing campaigns at large companies have experienced setbacks, illustrating the difficulties faced by workers seeking to unionize.
The EPI report suggests several potential solutions to these challenges, including the passage of the Protecting the Right to Organize Act (PRO Act), which aims to expand collective bargaining rights and strengthen protections for workers seeking to unionize. The PRO Act has been a focal point of labor advocacy, as it would address many of the barriers that currently impede unionization efforts.
In addition to traditional legislative solutions, the EPI also proposes innovative ideas to facilitate unionization. For example, it recommends introducing a binding arbitration process to expedite contract negotiations, as many workers face prolonged periods without a contract after successfully voting to unionize. Furthermore, the EPI suggests including guaranteed cost-of-living raises in initial contracts, ensuring that workers' wages keep pace with inflation and living expenses.
Another noteworthy recommendation is to require employers with a high CEO-to-worker pay ratio to engage in collective bargaining. This proposal aims to empower workers by giving them a platform to negotiate better compensation and working conditions, thereby addressing the growing income inequality that has become a hallmark of the modern economy.
Shierholz emphasized the historical context of union membership in the U.S., noting that before decades of sustained attacks on workers' rights, more than one in three American workers were union members. She asserted that restoring union density to 30% is achievable, but cautioned that it will necessitate comprehensive labor law reform to effectively protect workers' rights to organize and engage in collective bargaining. The challenges posed by decades of opposition to labor rights underscore the need for a concerted effort to revitalize the labor movement and enhance the bargaining power of workers.
In conclusion, the potential for tripling union membership in the United States presents a significant opportunity for economic transformation. By empowering workers through union representation, the country could witness substantial wage increases, a reduction in income inequality, and a revitalization of the middle class. However, achieving this vision will require overcoming formidable obstacles and enacting meaningful reforms to protect workers' rights. As the conversation around labor rights continues to evolve, the implications of increased union membership could resonate across the economy, shaping the future of work in America.
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