Union Membership Hits 16-Year High as Employers Battle Rising Costs

Union membership reached 16.5 million U.S. workers in 2025, an 11.2% share of the workforce and a 16-year high that reverses decades of decline. Unions added roughly 463,000 members since 2024, driven by growing interest among younger and minority workers, according to the analysis. For employers already absorbing six years of rising expenses, the trend signals new pressure on the cost of labor — and the prices consumers pay.

The arithmetic matters for any business owner. Public sector union membership stood at roughly 38% of employees at the end of 2025, compared with a far lower share in the private sector, where blue-collar and frontline workers dominate the rolls. The long historical arc is steep: union membership peaked in the 1950s at about 35% of the American workforce, fell to around 20% by 1983, and dropped to just under 12% by the early 2000s.

Organized labor has new targets

Several sectors show where the growth is heading.

At Starbucks, about 4% of employees are union members. According to National Labor Relations Board (NLRB) statistics, the Service Employees International Union (SEIU) has won 125 union elections at Starbucks locations nationwide, covering 667 locations and approximately 14,500 workers. Starbucks corporate remains resistant and has not signed a collective bargaining agreement. When employees in Buffalo, New York, unionized and sought $17 per hour, many saw their hours reduced, which affected their eligibility for company health insurance.

Rideshare drivers are also moving toward organization. According to the Los Angeles Times, drivers for Uber and Lyft are closer to unionizing in California after state regulators certified their right to do so, concluding a decade-long process. With support from the California Gig Workers Union and the SEIU, the state Assembly approved legislation last year granting rideshare drivers the right to unionize — a shift from prior rules under which gig workers could not unionize because they were not classified as employees. If implemented, drivers would pursue collective bargaining for higher pay and improved working conditions, though the author notes it is unclear how conditions could improve given that drivers use their own vehicles and set their own schedules and service areas.

College sports is the newest frontier. The Stanford University football team voted to become the first Division I NCAA program to join the College Football Players Association (CFBPA). College athletes are not currently considered employees of their schools or athletic conferences; when the Northwestern football team attempted to organize several years ago, the NLRB found no basis to grant union representation. Insiders predict the CFBPA will focus on organizing other teams in the Atlantic Coast Conference (ACC), with the goal of securing employee status for college athletes.

Headwinds for organizers

The growth spurt faces structural limits. Right-to-work laws, the decline in manufacturing jobs and opposition from large businesses present significant obstacles, the analysis notes. The gig economy has let companies shift labor costs from full-time employees to contract or part-time roles, making it harder for unions to find new growth opportunities.

The historical record explains both the resilience and the ceiling. Organized labor in the U.S. dates to 1794, when the Federal Society of Journeymen Cordwainers formed in Philadelphia. An 1842 Massachusetts court ruling affirmed the right of workers to organize. The American Federation of Labor (AFL) formed in 1886, merged with the Congress of Industrial Organizations (CIO) in 1955, and produced figures such as Jimmy Hoffa. Unions built their early success on workplace safety — Northeastern steel workers and West Virginia coal miners sought representation when conditions became untenable.

The employer playbook

The author's assessment of future membership is measured: based on historical trends, union membership will either decline slightly or remain steady in the coming years. Employers are offering higher wages at every level to attract talent, and expanded remote opportunities in fields such as IT and creative services have made positions more attractive — improved working conditions being a hallmark of early union success that reduces the need for unions, especially in white-collar roles.

For entrepreneurs who want to keep organized labor out, the recommendations are threefold: offer competitive pay and benefits; create an environment where workers feel valued, safe and productive; and communicate company goals and objectives clearly, because informed employees feel their work matters.

The stakes extend beyond unionized workplaces themselves. Union growth in other sectors could raise the costs of goods and services that businesses frequently use — a point the author illustrates with Starbucks baristas in Nashville, Tennessee, who skipped shifts on a recent Friday to support union representation. If a Grande drip coffee already feels expensive, the implicit question is what it would cost with a fully unionized barista workforce. Employers who invest in wages, safety and engagement now are, in effect, buying down that risk before organizers price it in.