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Private Sector Unionization

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Private Sector Unionization
Private sector unionization as a share of employment has declined from more than thirty percent in the 1950s to only about seven percent. This is not the result of a decline in our country’s manufacturing base, as many have claimed, but rather reflects large declines in unionization rates in almost all private industries. In fact, unionization within manufacturing has declined from around forty percent in the early 1970s to about fifteen percent recently (forbes.com, 2011).

Private sector unionization has declined because unionization by its very nature stifles competition in the workplace, which in turn raises costs and destroys jobs. The unions of yesteryear were able to raise wages substantially and enforce strong work rules that reduced

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