Opinion Editorial

Monday, February 23, 1998  

Union Membership Declines

Recently, the Bureau of Labor Statistics (BLS) released the latest data on union membership (available at http://www.stats.bls.gov/newsrels.htm). Once again, they show a decline in union membership, a trend that has been almost continuous since the early 1950s.

  • In 1997, just 14.1 percent of wage and salary workers were members of a union, down from 14.5 percent in 1996 and 20.1 percent in 1983 (see figure).

  • The number of union members fell by 159,000 last year, even as total jobs rose by 2.6 million.

  • Since 1983, union membership has declined by 1.6 million, while total employment has risen by more than 26 million.

There are many explanations for the decline of unionization, including the decline of employment in industries, such as autos, where unions traditionally have been strong; growing employment in services, such as retail trade, where unions tend to be weak; and increasing internationalization of the economy, which has made it harder for unions to maintain a wage premium. Thus in 1983, union workers made 38.2 percent more than comparable nonunion workers, but in 1997 they only made 33.9 percent more.

The decline of unionization is a phenomenon that is not unique to the U.S. Virtually every major country has experienced the same trend. For example, according to the Paris-based Organization for Economic Cooperation and Development (OECD), unionization has fallen from 36 percent of the labor force in Germany in 1980 to 29 percent in 1994. In Great Britain, unionization has fallen from 50 percent to 34 percent, and in France has fallen from 18 percent to just 9 percent over the same period. The unweighted average for all OECD countries has fallen from 46 percent in 1980 to 40 percent in 1994.

However, even as unions decline in economic importance, they remain strong politically. Indeed, their position in the Democratic Party has risen even as their numbers have fallen. According to the Federal Election Commission, union political action committees provided 47.6 percent of all contributions to Democratic candidates for Congress in 1996, up from 33.9 percent in 1992. This is a major explanation for the defeat of fast-track trade authority last year, a key issue opposed by the unions.

The growing importance of labor unions in the Democratic Party may have important implications for the 2000 presidential race. It suggests that labor's current candidate, House Democratic Leader Dick Gephardt, may have an edge over Vice President Al Gore. However, Gore may benefit from the growing importance of government employees within the union movement. In 1997, such workers represented 36.7 percent of all union members, compared to 16.3 percent for manufacturing workers. Assuming that the former are more likely to support Gore and the latter to support Gephardt, Gore may still end up being labor's choice.

Source: Bruce Bartlett (senior fellow, National Center for Policy Analysis), February 18, 1998.


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