The Case for a Living Wage

The Labor Movement: How Workers Won, What's Left

Short answer: The labor movement built the basic terms of modern work — the eight-hour day, the weekend, the end of child labor, and the federal minimum wage itself, set at 25 cents in 1938 under the Fair Labor Standards Act. None were granted voluntarily. Each was won by organized workers, and union membership has since fallen from a mid-century peak near one in three to about 10% today (BLS).

Almost everything you take for granted about a job was once illegal to demand. A weekend. A capped workday. A wage floor. Safety rules that keep you alive. The labor movement is the reason those exist, and the reason most Americans have forgotten they were ever in doubt. The conveniences feel like the natural state of work. They were extracted, fight by fight, often against violent resistance.

That history matters now because the affordability crisis didn't arrive in a vacuum. It tracks closely with the weakening of the same movement that built the floor in the first place.

What did the labor movement actually win?

The list is longer than most people realize. Through the late 1800s and early 1900s, organized workers pushed for and eventually secured the eight-hour day, the five-day week, the abolition of most child labor, employer liability for injuries, and the right to bargain collectively. The 1938 Fair Labor Standards Act bundled several of these into federal law: it created the federal minimum wage at 25 cents an hour, established overtime pay, and restricted child labor nationally.

That 25 cents was the founding statement of a simple idea — that there should be a legal limit to how little a hour of work could pay. Everything in the federal minimum wage explained descends from that 1938 decision.

Union membership share of U.S. workers (directional)

Mid-1950s peak
~1 in 3
1983
~20%
2024
~10%

Source: U.S. Bureau of Labor Statistics union membership data.

Why did the movement weaken?

Union membership has fallen from roughly one in three private-sector workers at the mid-century peak to about 10% of all workers in 2024, per the Bureau of Labor Statistics. Several forces drove the decline at once. Manufacturing — historically the union stronghold — shrank as production moved overseas. Legal changes made organizing harder and gave employers more tools to resist it. And many companies invested heavily in keeping workplaces non-union.

The timing isn't a coincidence. The same decades that saw union density collapse also saw the productivity-pay gap explode, the split documented in wage stagnation. Economists don't claim unions are the whole story, but the Economic Policy Institute and others identify their decline as a meaningful driver of why typical wages stopped tracking the economy.

1938The year the Fair Labor Standards Act created the federal minimum wage at 25 cents an hour — a direct win of the labor movement (U.S. Dept. of Labor).

Do unions still raise pay?

They do. Union members earn meaningfully more on average than comparable non-union workers in the same fields, a gap the BLS reports each year and EPI analyzes in detail. The "union premium" shows up in wages, but also in benefits — health coverage and retirement plans are more common in union jobs. When the share of workers covered by that bargaining fell, so did the wage-setting pressure that pulled pay upward across whole industries.

This is the through-line connecting the historical fights to the present one. The case in why we should raise the minimum wage is, in a sense, a continuation of the 1938 argument: if collective bargaining can't reach every workplace, a strong legal floor has to do more of the work.

What's left to win?

Plenty. The minimum wage created in 1938 sits frozen at $7.25 since 2009. The eight-hour day exists on paper but bleeds into unpaid availability for many salaried and gig workers. Paid family leave, which most wealthy nations guarantee, still isn't federal law in the U.S. And the basic deal the movement secured — that full-time work should support a stable life — has quietly broken for tens of millions, the reality mapped across the American dream and felt directly by anyone living paycheck to paycheck.

Why this history is the answer to "it's hopeless"

The most useful thing the labor movement proves is that conditions which feel permanent are not. There was a time when a six-day week and child labor were simply how the economy worked — until enough people organized to make them illegal. The affordability crisis can feel like weather, something that just happens. It isn't. It's the product of policy choices, and policy choices have been reversed before.

The fight for a living wage is the same fight, picked up again. The floor was built once. It can be raised again. What that takes is what it always took: enough people deciding the current arrangement is not acceptable, and refusing to treat it as the natural order of things.

Frequently asked questions

What did the labor movement actually achieve?
The eight-hour workday, the weekend, the end of most child labor, workplace safety rules, and the federal minimum wage itself — codified in the Fair Labor Standards Act of 1938. These weren't gifts from employers; organized workers fought for each one over decades.
When did the federal minimum wage start?
1938, under the Fair Labor Standards Act, at 25 cents an hour. It was a direct product of the labor movement and New Deal politics, and it set the principle that there should be a legal floor under wages at all.
Why is union membership lower now?
U.S. union membership has fallen from roughly one in three private-sector workers at its mid-century peak to about 10% of all workers today (Bureau of Labor Statistics, 2024). Legal changes, deindustrialization, and organized employer resistance all contributed.
Do unions still raise wages?
Yes. Union workers earn meaningfully more on average than comparable non-union workers, a gap the Bureau of Labor Statistics and EPI both document. The decline of unions is one factor economists link to decades of wage stagnation.

Fight For A Living Wage is a nonpartisan 501(c)(3). Figures are sourced inline from primary data (BLS, U.S. Census, Federal Reserve, KFF, and similar). See our full stats page →