Unionism and Economic Performance
by Peter Hall-Jones
  

How do union membership levels affect a country's economic competitiveness? Is there a general pattern? We have compared data from the World Economic Forum's last two Global Competitiveness Reports* alongside data on global union membership density. The results for both years told the same story. The higher a country's union membership is, the more economically competitive it is likely to be.

For 2007 we had union membership data for 47 of the 50 most competitive economies (according to the GCR ranking). The top 5 economies have an average union membership density of 43%. Now watch what happens... The top 10 have an average of 38%. The top 20 have an average of 34%. The top 30 average is 31%. The top 40 average is 30%. The top 50 have an average of 29%. The pattern could hardly be clearer, could it?

For 2006 we found that the top 10 had an average of 37.9%. The top 20 had an average of 37.8%. The top 30 rate was 33%. And the top 40 had an average of 27.3. The pattern is tighter, but it tells essentially the same story.

Details are set out below. Density figures are clickable, and will take you to the most recent publicly-accessible source we have been able to find. A spreadsheet you can play with is available here. Please note that some of our membership density figures have been updated since the 2006 ranking, and so you will not be able to replicate our conclusions without reference to our earlier data set. This is available on request.

This is an open-source project, and we welcome your help in adding to, or correcting, the data on membership density. All we need is a reliable and publicly-accessible source (please see beneath the table for some additional notes). You can use this form, or email us here.

You will note that there are still many countries for which we do not have density figures. This is because we have decided to only use data from after 2000. Those already familiar with our work will understand why. To put it simply, the general view that unionism is internationally declining is false. In fact the global trend has been one of membership increase since about 2000 (if not before). Using data from before 2000 is likely to lead to a false result. Also, the competitiveness index of countries change fairly regularly. To try and associate this with out-of-date union membership figures would only be a waste of time.

Unfortunately quantitative work on union membership has radically declined in recent years. National statistical digests have generally ceased to include it. International institutions have put it in their "too hard basket", and many governments have reduced their analysis to the point where it is simply insufficient to get a meaningful picture. The media are thus free to run their own narrative, which is inevitably the pre-2000 one of union decline. As an example of how misleading this is, in the U.S. union membership is now disallowed for a full 25% of workers. This figure has been rising rapidly over recent years. Various other factors have also combined to artificially lower membership numbers. But the ubiquitous message does not consider this. Unions are portrayed as ailing and failing, with workers "voting with their feet" and leaving them behind.

The lack of reliable information is allowing the public to be misinformed.

Notes

* The Global Competitiveness figure takes into account: Institutions, Infrastructure, Macroeconomy, Health and primary education, Higher education and training, Market efficiency, Technological readiness, Business sophistication and Innovation. Details from the 2007 Global Competitiveness Report are available here. The 2006 Global Competitiveness Report (and earlier ones) are available here. New Unionism makes no comment on the views expressed or the methodology used.

** Union density is generally taken to mean unionised workers as a percentage of the workforce. However there are many shades of grey, if not a widespread psychedelia, in the way details are derived and combined. At times we have also had to guess at the exact year for a figure, based on publication date, other references cited, and context. Building this data set will be an ongoing job.
Where the link takes you to http://www.ilo.org/public/english/support/lib/resource/subject/labourstat.htm, this is so that you can request a copy of the ILO Bureau of Statistics Union Membership spreadsheet, as noted on that page. This document cites hard copy references, most of which are from statistical yearbooks.