What college students should know about labor unions in the U.S. and abroad

More and more college graduates are looking to begin their careers outside of the United States upon graduation, mainly due to study abroad opportunities or international internships they held during their undergraduate years.

Additionally, the majority of international students who study at American universities end up leaving the country after their studies are complete. Less than one-fifth of international bachelor’s degree recipients ultimately stay and join the U.S. workforce, according to an Economic Innovation Group analysis.

H-1B visas, which allow U.S. employers to hire skilled foreign workers temporarily, are in limited supply. As a result, many international students leave the U.S. after studying in American colleges and universities rather than competing for the scarce opportunities available to stay. The number of H-1B visas available to the private sector has not increased since 2006, despite the national economy growing by more than 30%.

Though participation in labor unions in the U.S. has increased over the last two years — 16.2 million U.S. workers were represented by a union in 2023, a rise of 191,000 from 2022 — the U.S. is far behind other nations in the percentage of union members in the total workforce. Stronger unions, and therefore greater voice in wages, benefits, and working conditions, may provide another reason for graduates to take their skills to labor markets abroad.

Here’s what you need to know about labor union participation in five countries that are likely to be on the short list among graduates of U.S. colleges and universities considering relocation.

United Kingdom

In the United Kingdom, labor unions are called trade unions, which is the British English term for a group of workers who band together to improve their working conditions through collective bargaining. Nearly 7 million workers in the United Kingdom belong to a trade union, which is 22.4% of all employees.

Over the last decade, the rate of union membership among United Kingdom employees with a college degree or equivalent, or with another type of higher education qualification, has been higher than the rate of union membership among all employees, according to data from the Department for Business and Trade.

Though trade union membership has been declining over time, political leaders are increasingly advocating for workers’ rights. “We are now dealing with a trade union movement on which Britain depends for its prosperity,” Richard Balfe, a member of the House of Lords of the United Kingdom, said in a parliamentary debate last June. “The people who look after the skies, fly the planes, run the National Air Traffic Service, keep our nuclear power plants going and manage our railways are highly skilled people who are in trade unions because they see a trade union as being a way of defending their interests.”

The median annual earnings for full-time employees in the UK have steadily increased since 1999, according to a Statista study. In 2023, the median annual earning was $34,963 pounds, which is equivalent to $45,390 American dollars. On average, UK trade union members earned 4.2% more than the average worker in 2023.

Canada

Of Canada’s total workforce, nearly 30% belong to a labor union.

Unions in Canada are required by law to be democratic and financially accountable to their members. There are more than 100 unions throughout Canada, but the United Food and Commercial Workers Union is by far the largest. UFCW International represents more than 250,000 Canadians and roughly 1.3 million members across North America. UFCW members work in a variety of industry sectors, including agriculture, restaurant and food services, warehouse and distribution, pharmaceuticals, and packinghouses, to name a few.

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Canada’s workforce has strong ties to the United States, with trade between the nations boosting Canada’s economy to its spot as the 10th largest in the world. Union members also earn significantly higher wages than non-union workers — $7 more an hour, or 28% more — according to the Canadian Labour Congress. 

Germany

Germany is home to Europe’s largest economy and the world’s third-largest economy. Germany’s union membership density is also much larger than that of the United States. Half of German workers are covered by a collective bargaining agreement compared to 11.2% of private sector American workers. 

The German Trade Union Confederation brings together several of Germany’s largest trade unions. The confederation gained about 437,000 new members across its eight trade unions in 2023, a rise in membership that hasn’t been seen in years. Germany also boasts a system of statutorily mandated “works councils” that give workers a direct voice in their employers’ decision-making that supplements collective bargaining between unions and employers.

Australia

Though Australia is a popular study-abroad destination, it may not be the best place for college graduates looking for economic security in a labor union. Between 1992 and 2022, the proportion of employees who were trade union members decreased from 41.1% to 12.5%. Only 5% of workers aged 20 to 24 are members of trade unions.

This collapse in union membership can be partially explained by labor laws that have made it more difficult for unions to organize and bargain. The country’s overall economic shift from manufacturing to services has also contributed to the decline.

The education and training industry employs the largest number of employees who are members of a labor union, with public administration and safety following close behind.

France

France’s economics are largely determined by its immense appeal to tourists, explaining its position as the world’s leading tourist destination and the world’s seventh richest economy. However, union membership in France has been on a steady decline since its peak of 30% in 1949. Membership has stabilized at around 10% since 1990.

Political unrest in recent years has prompted a strong response from labor unions despite their smaller numbers. Just before the Paris Olympics, the General Confederation of Labour, France’s largest trade union confederation, called for mass demonstrations to pressure President Emmanuel Macron into allowing a left-wing coalition to form a new government. This effort included railway workers who rallied near the National Assembly in Paris.

Now what?

Many American college students and foreign students studying in the U.S. will end up working in economies where unions play an even larger role than they play in the U.S.

In some countries, unions play a huge political role either from inside a political party, like in the United Kingdom, or as outside protesters, like in France. In other countries, like Germany, unions play a central economic role. 

When college graduates make their decisions about where to begin working, unions may very well be a factor in that choice. Understanding the value different countries place on union membership is important, especially if union members earn higher wages than non-union employees.