The percentage of workers who belong to unions in the U.S. notched down to a record-low 10.0% in 2023, from 10.1% in 2022.
The peak for unionization in the U.S. was about 35% in the mid-1950s.
Even more noteworthy is the shrinking gap between union and nonunion wages, which fell to a record-low of 15.0% in 2023. That’s roughly half the peak of 29.3% as recently as 2007.
Among private sector workers, the decline is wage differences is even more stark. The gap between union and nonunion wages fell by two-thirds between 2007 and 2023, from 24.9% to 8.4%.
Historically, union wages have been significantly higher than nonunion wages. That’s because unions function like cartels to drive up wages for the workers they represent, which restricts the number of workers companies can employ and creates upward pressure on company prices.
Selection bias, such a union’s…
