01
Jun

Declining union membership levels could have a substantial impact on workers and firms in a number of industries.

The private sector, in particular, has seen waning union participation, with only 6.9 percent of workers possessing membership. This is down from about one-third of private-sector employees belonging to unions in the 1950s, according to the Bureau of Labor Statistics. This change is associated with other developments that are occurring in the employment market, according to Human Resource Executive Online.

Wharton management professor Matthew Bidwell has conducted research indicating that employee turnover is increasing, but it remains unclear what this means. One possibility is that workers are moving to better jobs and opportunities, while another is that they are finding fewer opportunities to advance over time. Higher turnover may also impact employee benefit plan administration, particularly for 401(k) and retirement systems that require time to serve their purpose.

The trend may diminish worker understanding of laws like the Family and Medical Leave Act or the Americans with Disabilities Act. Employers who want their workers to be more fully aware of their policies and compliance issues may need to undertake educational efforts themselves.