America’s job-quality crisis and how to revive workers’ pay, dignity, job advancement, and economic well-being
Blog MAY 13, 2025
By: Erin Kelly
MAY 1, 2026
On May 1, much of the world—though not the United States—celebrates International Workers Day (opens in a new tab) to honor the social and economic contributions of workers and labor unions. The May Day holiday began in large part to mark the anniversary of the 1886 Haymarket rebellion in Chicago, the bloody culmination of a general strike in the United States in which a bomb explosion and ensuing gunfire killed several police officers and civilians. The subsequent crackdown on union activity resulted in dozens of union leaders being arrested, as well as some employers reneging (opens in a new tab) on agreements they had made to shorten work hours.
While the U.S. labor movement today does not face nearly the level of violent suppression it did generations ago, unions and workers still face incredible headwinds. Anti-union activity by employers (opens in a new tab) and governments (opens in a new tab) has pushed the union coverage rate (opens in a new tab) down to 10 percent overall and just 5.9 percent in the private sector, despite historically high popular support (opens in a new tab) for unions. This is down from unionization’s peak at nearly 35 percent of the U.S. workforce in 1945 (opens in a new tab). The proliferation of so-called right-to-work laws (opens in a new tab)—allowing workers to opt out of paying dues or agency fees while still enjoying the benefits of union representation—has drained unions of members and funding, while trade shocks (opens in a new tab) and automation pressures (opens in a new tab) have whittled away at employment levels in traditional union strongholds (opens in a new tab) in the manufacturing sector.
Many unions also have sounded the alarm over the threat of artificial intelligence (opens in a new tab) to workers and labor markets, and one recent Equitable Growth study finds that unionized workers are better protected against potential threats from AI than nonunionized workers. Other research produced by Equitable Growth scholars over the past year has highlighted these challenges and opportunities facing workers and the labor movement, including the ability to dampen support for right-wing populism, which we will turn to first.
In 2025, Equitable Growth published a series of essays exploring the political economy of right-wing populism. Several papers in that series touched on the power and potential of unions to counter populism’s rise by shaping economic and social outcomes for workers, raising wages, and improving job quality.
George Washington University’s Adam Dean and Jamie McCallum of Middlebury College explained how the decline in U.S. job quality, in large part due to the deterioration of unions’ bargaining power, is associated with political alienation among workers and increased support for right-wing populist policies and candidates. Dean and McCallum noted the benefits that unions accrue to members, including lower injury rates and higher salaries by an average of more than 11 percent compared to nonunion workers in the same industry. Improved material conditions and the inclusion of “workers’ lives in a collective social fabric” erects barriers to the alienation driving many workers toward right-wing populism.
A related essay from Erin Kelly of the Massachusetts Institute of Technology further highlighted the material benefits of unions, including workers’ improved physical health, a narrower racial wealth gap, and an average of $1.3 million in additional lifetime earnings for union workers compared to their nonunion counterparts. Kelly argued that worker voice on the job should be considered an aspect of job quality that improves workers’ social standing by affirming perceived “dignity and worth” among union members.
Unions not only directly benefit members, but also can engage in “bargaining for the common good” that supports broader community goals around housing, climate, and education, Kelly continued. Altogether, the social and economic benefits of unions to workers and their communities can foster solidarity between people from different backgrounds and buffer the move toward right-wing populism. Importantly, Kelly proposed greater innovation in state and local labor policies to strengthen the ability of unions to bargain—particularly through sectorwide standard-setting, in contrast to the fragmented worksite-by-worksite approach currently enshrined in U.S. labor law.
Another essay in the series focused on a novel arena for collective bargaining: tenant unions. Jamila Michener of Cornell University echoed the arguments made by other authors in the series that collective action “confronts and diffuses cleavages” along racial and social lines, disrupting the alienation that produces support for right-wing populism. Tenant organizing, similar to traditional workplace organizing, improves material conditions for people “within the context of a community that makes those wins more legible and politically meaningful.”
University of Massachusetts Amherst’s Lenore Palladino connected the decline of labor union bargaining power with increased shareholder power in corporate decision-making. The policy prescriptions suggested by Palladino—curbing stock buybacks and excessive executive compensation, including worker voice in corporate leadership, and reorienting financial services away from extraction and toward productivity—would improve worker bargaining power and represent areas of opportunity for unions to flex their policy-influencing muscle. Such policies would improve job quality and inject democratic principles into the workplace, helping mitigate the drift toward right-wing populism among disaffected workers.
Lastly, MIT’s David Autor, David Dorn of the University of Zurich, and Gordon Hanson at Harvard University discussed the impact of the China trade shock of the early 2000s on U.S. workers, showing how incumbent workers in manufacturing communities suffered widespread job loss, eroding incomes and producing social alienation among the largely White male workforce. The essay cited research showing growth in support for right-wing populist policies and politicians in the areas most harmed by the trade shock and suggested place-based policies to temper the impacts of economic dislocation. While Autor and his co-authors did not explicitly address the labor movement, the implications are clear: The shock to traditional union strongholds in the manufacturing sector has doubly harmed workers through trade-related job loss and the erosion of the manufacturing unions best equipped to help displaced workers.
Equitable Growth’s broad body of work (opens in a new tab) holds important implications for unions and the labor movement. In the past year alone, Equitable Growth scholars have produced several valuable lessons from union-related research. Unions improve material conditions for members and their communities, foster a sense of belonging and solidarity across social divisions, and reduce economic gaps along lines of gender, race, and geography. And unions are instrumental in managing economic disruptions to workers and communities, playing a pioneering role in the development, adoption, and response to technological change in the workplace.
Yet union participation has been declining in recent years in the United States, despite unions being broadly popular among Americans and despite the strong evidence of their benefits for workers. Rebuilding the labor movement would mean not only improved material conditions for union members but also a more resilient economy for all. At the same time, labor law is often stacked against workers—for example, blocking union rights for millions of misclassified workers in sectors from construction (opens in a new tab) to ride-hailing (opens in a new tab).
Significant legal reform, including through the PRO Act (opens in a new tab) and sectoral bargaining approaches (opens in a new tab), could free unions to capitalize on the potential for new organizing in historically nonunion industries. Revitalizing the labor movement would benefit workers and the economy in normal times and is an imperative in the face of current economic and political turmoil.
Blog MAY 13, 2025
By: Erin Kelly
Blog FEB 19, 2025
By: Virginia Doellgast, Nell Geiser
Essays SEP 11, 2025
By: Lenore Palladino
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