Labor Organizing Spurs Pay Increases, Outpacing Inflation and Boosting Worker Compensation

Union workers, particularly those in service and manufacturing roles, are experiencing a surge in wage growth, narrowing the gap with nonunion workers. While compensation for union workers has only increased by 11% since Q1 2020 compared to 14.6% for nonunion workers, wages for union workers grew by 4.6% in Q2 2023. This increase is attributed to significant labor action and a series of labor deals resulting in higher pay. Despite the catch-up, cumulative wage growth is still faster for nonunionized workers, but the gap is closing. Unionized workers are encouraged to organize during new contracting periods to negotiate better wages.