Employment trends in the US economy

Surname 1
The effect of Union membership decline in the US on;
The decline of unions has resulted in reduced pay for employees. Unions advocate for the
rights of employees, ensuring that their pay and working conditions are good. A study research
conducted by the Economic Policy Institute indicated that the decline in union membership had
resulted in the drop of weekly wages of nonunion employees by $14 to $52. In addition to that,
the decline in union membership has led to the reduction of weekly wages for nonunion workers
who have high school education by $13 to $61 (Boeri et al. 2015). The decrease of the wages can
be attributed to the fact that unions tend to restore demand to the economy. As such, when the
demand of the economy reduces, purchasing power reduces, and wages reduce for not only union
members but non-union members as well.
The AFL-CIO federation, which is one of the leading labor unions, was responsible for
the enactment of the Family and Medical Leave Act. The law stipulated that all government
institutions and private companies that employed more than fifty employees had to ensure that
their employees were granted up to twelve weeks of job-protected unpaid leave every year (Boeri
et al. 2015). The leave period was for the employee to look after their children and newborn and
Surname 2
take care of their families. Reduction in the rate of union membership has resulted in the
scraping off of some of these benefits (such as higher wages and pensions)
Working conditions
In the 1930s, there was a meteoric rise of unions in the US that resulted in the expansion
of health care for the workers. Unions ensured that all employees had health coverage plans and
were insured. The decline in union membership has resulted in the reduction of employer-based
health coverage practices. Exploitation of workers is also likely to increase due to the declining
union membership.
Job stability
Union membership decline has resulted in declining rates of job stability and security.
Most people join unions because one of the major benefits they provide is job security. Unions
champion for the rights of their members, ensuring that even in tough economic situations, these
workers are not laid off (Boeri et al. 2015). Additionally, unions provide excludable employment
security to their respective members through ensuring that the cost of firing these works is high.
T. Boeri, A. Brugiavini, and L. Calmfors. The Role of Unions in the Twenty-First Century: A
Report for the Fondazione Rodolfo Debenedetti. Oxford University Press, 2015.

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