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Labor unions are growing, but where depends on state politics

Members of Virginia Professional Firefighters association hold signs during their biannual convention in May to protest Democratic Gov. Abigail Spanberger’s veto of collective bargaining legislation. New research found a significant spike in labor union membership, but growth is highly dependent upon state politics. (Photo by Charlotte Rene Woods/Virginia Mercury)

Members of Virginia Professional Firefighters association hold signs during their biannual convention in May to protest Democratic Gov. Abigail Spanberger’s veto of collective bargaining legislation. New research found a significant spike in labor union membership, but growth is highly dependent upon state politics. (Photo by Charlotte Rene Woods/Virginia Mercury)

Labor union membership continues to climb in the United States, though the increase remains sharply divided by the politics of individual states.

Last year, the nation added more than 411,000 union members — the largest annual growth since 2008, according to a study published just ahead of the Labor Day holiday by the Illinois Economic Policy Institute and the Project for Middle Class Renewal at the University of Illinois at Urbana-Champaign. 

At the end of last year, more than 14.6 million American workers belonged to a union — about 10% of the workforce, the study said. 

While union membership grew across the country, the State of the Unions report found that states that have sought to protect or strengthen collective bargaining rights added three times as many union members as so-called right-to-work states, which prohibit mandatory union membership or dues as conditions of employment.

“What seems to be the number one driver is the state of the state,” said one of the study authors, Robert Bruno, who leads the labor education program at the University of Illinois at Urbana-Champaign. “If the policy is anti-union, it suppresses worker will. Where the law allows worker will to flourish, as I would argue it should, then you see higher numbers. So you can’t ignore politics. You can’t ignore policy.” 

State governments are nearly evenly divided on labor policy, with 26 states having right-to-work laws. Union membership rates sit at about 14% in collective bargaining states and 5% in right-to-work states, the study found.

The study shows that workers in collective bargaining states earn significantly more than those in other states. After adjusting for cost of living variances, the report calculated average hourly earnings of $34.16 in right-to-work states and $37.24 in collective bargaining states.

Union density is nowhere close to its record high. In 1954, more than a third of American workers belonged to unions. Today, that rate is about 10%.  And unions face major policy headwinds at the state and federal levels. In recent years, Southern states have passed new laws aimed at curbing union expansion. And President Donald Trump has sought to strip collective bargaining rights from more than 1 million federal workers. 

Researchers said it’s unclear how federal actions will affect union membership figures. Many of the president’s moves are being litigated in courts and more federal workers have sought to unionize under this administration. 

But public support for labor unions is growing among Republicans and Democrats, Gallup polling shows

“More Americans are turning to unions as a bulwark against the rising cost of living, and more public sector workers turned towards unions last year in the wake of some federal actions and federal headwinds,” said State of the Unions coauthor Frank Manzo IV, an economist at the left-leaning Illinois Economic Policy Institute. 

Conservatives have long argued that unions’ benefit on wage growth has been overstated by pro-labor interests. 

In a 2025 review of 147 studies, researchers at the free-market think tank Mercatus Center concluded that powerful labor unions can lead to slower job growth and fewer jobs for unionized workers, reduce company investments in research and development, and increase the likelihood of company closures. 

Researchers at the George Mason University think tank said the difference between the wages of unionized workers and nonunionized workers has declined in recent years and may even be negligible. 

“When powerful and adversarial unions operate with government-granted monopoly privileges and press for unsustainable terms, it can backfire and result in lost jobs and fewer opportunities for workers,” that report said.

This year, state lawmakers passed dozens of bills seeking to boost worker protections across 19 states, according to tracking by State Futures, a nonprofit coordinating hundreds of Democratic lawmakers across the states.

Those measures included three bills aimed at expanding collective bargaining.

Illinois lawmakers granted rideshare and gig drivers the right to organize and to bargain collectively. Washington state extended collective bargaining rights to certain university student employees.

And Virginia lawmakers approved a measure to repeal the state’s longstanding ban on public-sector collective bargaining. That would have expanded the possibility of union membership to half a million public employees in the commonwealth. But Democratic Gov. Abigail Spanberger vetoed that measure in May. 

The governor said she agreed with the goal of expanding collective bargaining rights. But she urged the legislature to adopt specific amendments, including delaying provisions of the bill until 2030 and shifting authority over how the system operates to a state board. 

“While preserving the enrolled bill’s focus on allowing public employees to achieve collective bargaining, my amendments would have also provided additional flexibility for public employers to take into account existing local budget timelines and processes,” Spanberger wrote in her veto message. “However, the General Assembly rejected these amendments.”

Stateline reporter Kevin Hardy can be reached at khardy@stateline.org

This story was originally produced by Stateline, which is part of States Newsroom, a nonprofit news network which includes Wisconsin Examiner, and is supported by grants and a coalition of donors as a 501c(3) public charity.

Labor Day report has good news and bad news about Wisconsin workers

By: Erik Gunn

A construction worker on a road project. Photo courtesy High Road Strategy Center, from the State of Working Wisconsin Report

Wage gains for lower-paid Wisconsin workers have continued in 2026, but a halt in job creation suggests that might not last, says the author of a new report released ahead of Labor Day.

“The State of Working Wisconsin 2026” tells a good news-bad news story for Wisconsin’s workforce, but one that could become less favorable under current conditions.

“For working people in Wisconsin, the Labor Day 2026 picture is mixed,” the report states. “While overall unemployment remains low, the state isn’t adding jobs and Black unemployment is growing. While the median wage has reached an all-time high, surging inflation in 2026 means that wage growth is likely coming to an end.”

The report is a product of the High Road Strategy Center, based at the University of Wisconsin. It was written by Laura Dresser, the center’s associate director, along with Joel Rogers, the director, and Leslie Vasquez. The center was founded 30 years ago as the Center on Wisconsin Strategies (COWS).

The report’s best news is the continued wage growth, particularly for lower-wage workers, Dresser said in an interview. That has been consistent since about 2018, she said.

Except for a period early in the COVID-19 pandemic, when many businesses cut back and there was a brief, sharp increase in layoffs, the unemployment rate has also been consistently low, and employers have complained about the difficulty in filling jobs.

“Workers have more bargaining power, and they’ve managed to turn that into wage increases,” Dresser said. “That’s much more true in the lower-wage jobs than it is in the higher wage jobs.”

The lowest-paid 20% of workers have made the strongest wage gains, while the wage increases have been the smallest for the workers whose pay puts them in the 80th percentile —those who earn more than 80% of the workforce — she said.

Job growth, however, has slowed down in the last year and a half.

Chart from State of Working Wisconsin 2026 report

“Since late 2024, Wisconsin’s job market has gone flat,” the report states. From 2020 through most of 2024, Wisconsin’s economy was steadily adding jobs, setting new records.

In November 2024, the state hit a record high of 3,051,000 jobs, according to the report. Since then the total number of jobs has diminished, marking 3,042,900 jobs in July.

“We are not seeing increasing numbers of jobs over the last year and a half,” Dresser said — which, she observed, is parallel to a national trend of “anemic” job growth.

The construction industry remains particularly strong in Wisconsin job growth, according to the report, with jobs growing at twice the rate for construction jobs nationwide in the last six years, according to the report.

Wisconsin leisure and hospital jobs grew 1.6% in that period, while nationally they “barely grew at all,” according to the report. And manufacturing jobs are 4% below what they were in February 2020, prior to the COVID-19 pandemic shutdowns.

“Wisconsin is losing manufacturing jobs and losing them much more rapidly than the national decline,” the report states.

Tariff policies have shifted unpredictably since President Donald Trump returned to the White House in January 2025 owing both to shifting policies in the administration as well as court cases that have overturned some of the administration’s tariffs.

The report cites research from the Economic Policy Institute in Washington, D.C., that concludes the tariff policies have done little to change the nation’s balance of trade with other countries, while reducing both imports and exports.

Wage growth could be coming to an end as well. If unemployment increases, workers may feel less able to seek better pay and working conditions, according to the report.

In 2026, inflation has driven up costs particularly for energy, fuel and utilities. “And national evidence is that inflation is growing faster than wage growth this year — that’s a big warning light that we’ll get thrown off that wage trend we’ve been on,” Dresser said.

While wage gains have been especially strong for Black workers over the last six years in Wisconsin — increasing 17% for Black women and 14% for Black men — the report also sees a persistent inequality along racial lines.

“Unemployment has stayed really low, but in the last year Black unemployment has gone up by a full percentage point while white unemployment has held steady,” Dresser said.

The failure of Wisconsin to raise the state minimum wage — which remains at $7.25 an hour — and the persistence of state laws enacted in the last decade weakening unions for public employees as well as in the private sector are also making it more difficult for workers, according to the report.

“Unions, made up of working people, help increase the power and standards of living of working people,” the report states. And they have been actively organizing in Wisconsin, although the renewed enthusiasm for unions hasn’t yet produced broad gains in membership, which has diminished to 5% of the private sector workforce.

Affordability has become a widespread buzzword in political campaigns for 2026, and the report suggests that can be viewed in more than one way.

“While the question of affordability is generally framed as a problem of the cost of living, the problem is equally or even better understood as a problem of suppressed pay,” the report states. “Raising the minimum wage and making it easier to join a union would both increase paychecks.”

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