A recently released report by the Center for American Progress (CAP) finds that working-class Americans who are union members hold nearly four times more wealth than non-union households.
The analysis, "Unions Build Wealth for the American Working Class," released May 3, found that "being part of a union increases wealth for working-class families—defined as households without a four-year college degree—especially working-class families of color," CAP states in its news release.
"Unions’ efforts to help more workers earn higher wages, have job stability, secure better benefits, and access training opportunities for workers are essential components contributing to working-class families building wealth," CAP states in the release.
The report's key finding is that working-class union households have approximately $201,240 in median wealth, nearly four times more than working-class nonunion households' $52,221 in median wealth.
"Wealth is the difference between what people own and what they owe in debt," the report states, "and building and maintaining wealth is crucial for families. Wealth allows workers to cover expenses during emergencies or periods of joblessness; put money toward purchasing a home or raising children; and fund a comfortable retirement."
Other findings show union memberships close the wealth gap between working-class and college-educated households, as well as the racial wealth gap, with Black union households holding four times the wealth as nonunion households; for nonwhite Hispanics, the difference is five times, according to the report. Homeownership is also higher for union working-class households of all races or ethnicities, the report found.
“Union support is at the highest it has been in decades, and it’s no secret as to why," David Madland, CAP senior fellow and co-author of the report, said in the news release.
Madland said the majority of U.S. workers do not have a four-year college degree and comprise the working class.
"The union wealth effect has the potential to increase wealth for millions of working-class Americans,” Madland said in the release. “Unions are taking a giant step toward narrowing the racial wealth gap.”
Aurelia Glass and Christian Weller co-authored the report with Madland, according to CAP.
