Research Report

April 22, 2014

THE STATE OF THE UNIONS 2014

A Profile of Unionization in Chicago, in Illinois, and in America
By Frank Manzo IV, M.P.P., Robert Bruno, Ph.D., and Virginia Parks, Ph.D. REPORT SUMMARY
Since 2003, unionization has declined in Illinois, in the Chicago region, and in America. There are approximately 116,000 fewer union members in Illinois today than there were in 2003, contributing to the 1.26 million drop in union workers across the nation over that time. Declining union membership has primarily been the result of decreases in male unionization, white non-Latino unionization, and private sector unionization. Despite the long-term downward trends, however, both the unionization rate and total union membership increased in Illinois last year. The unionization rate increased from 14.6 percent in 2012 to 15.7 percent in 2013; Union members increased from 800,000 to about 850,000; This uptick was driven by increases in unionization of Chicago area workers, female workers, African-American workers, public sector workers, and older workers. Over half of all public sector workers are unionized in both Illinois and the Chicago metropolitan area (about two-thirds of public sector workers are unionized in the City of Chicago proper). Meanwhile, slightly more than a third of all public sector workers are unionized across the nation. In comparison, one-in-ten Illinois and Chicago area workers in the private sector are union members while less than seven percent of private sector American workers are unionized. Policies that increase union membership in Illinois are those which tend to: grow employment in utilities and construction through infrastructure investment, reduce rural living and raise the attractiveness of urban life, increase public sector employment and size, decrease high school dropout rates, expand citizenship to immigrant populations, and bring more African-Americans into the workforce. Lastly, labor unions increase individual incomes by lifting hourly wages and by raising the number of hours that employed persons work each week. In Illinois, the usual workweek of union workers is 4.8 hours longer on average than the usual workweek of nonunion employees. Additionally, unions raise worker wages by an average of 21.4 percent (and by a median of 20.3 percent) in Illinois. The states union wage effect exceeds the national average of 16.7 percent and is the 8th-highest in the nation. Ultimately, despite the long-term gradual decline in union membership, labor unions continue to play a vital role in the direction of the economy and in the creation of public policy in Illinois. For more, the full report is available online at: www.illinoisepi.org/policy-briefs-countryside.

ILINOIS ECONOMIC POLICY INSTITUTE A Higher Road for a Better Tomorrow P.O. Box 298 La Grange, Illinois 60525 Phone: 708-375-1002 www.illinoisepi.org

UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN Labor Education Program School of Labor and Employment Relations 815 W. Van Buren Street, Suite 110 Chicago, Illinois 60607 Phone: 312-996-2624 www.illinoislabored.org

THE UNIVERSITY OF CHICAGO School of Social Service Administration 969 E. 60th Street Chicago, Illinois 60637 Phone: 773-702-1250 www.ssa.uchicago.edu

The State of the Unions: Construction Industry in Illinois

Illinois Union Members by Industry

11.7%
Construction Manufacturing Retail Trade Finance Professional, Science, Management Education, Health, Social Services Food Services Other Services Public Administration Accommodation Arts, Entertainment, Recreation All Other Industries

Variable Employed In Labor Force Unemployment Rate Unionization Rate Variable Estimated Workers Hourly Wage Union Wage Premium, $ Union Wage Premium, % Usual Hours Worked Age Lives in the Chicago MSA

Construction 82.60% 97.09% 14.93% 37.81% Union 89,000 $32.36 Nonunion 145,000 $21.97

+$10.39 +47.28% 39.3 42.4 73.8% 36.5 38.3 75.7%

Workforce Education
100%
0.2% 1.2% 9.8% 11.1% 21.5% 0.2% 2.3% 15.7% 10.7% 18.4% Masters Bachelors Associates 37.0% Some College, No Degree High School 12.7% 15.7% Less than High School Professional or Doctorate

50%
43.5%

0%
Union Nonunion

Data from the Bureau of Labor Statistics suggest that union workers in Illinois construction industry: Are 37.8 percent of the industry; Comprise 11.7 percent of the states union membership; Face a 14.3 percent unemployment rate; Are more male and more white nonLatino Disproportionately live outside of the Chicago MSA; Have slightly lower educational attainment levels; Work more hours per week; and Experience a 47.3 percent union wage premium, although this could be the result of a host of other factors, such as different occupations and risk hazards compared to nonunion workers.

Gender of Workforce
100% 80% 60% 40% 20% 0%
Union
Male
14.9% 4.5% 5.1% 95.5% 85.1%

Union Workforce
0.5% 19.3% 27.5%

Nonunion Workforce
2.3% White African-American Latino/a Other Races

Nonunion
Female
75.1%

2.0%

68.2%

*NOTE: The 2013 CPS-ORG sample size for construction industry workers in Illinois is 222, including 85 union and 136 nonunion workers. Be careful to consider the statistics true and definitive representations of the industry. Estimates are weighted to match the Illinois population.