The Implications of the Great Recession of 2008 on U.S. Unionization Essay

The Implications of the Great Recession of 2008 on U.S. Unionization - Essay Example In other words, banks issued too much loans directed in real estate and as a consequence, prices were pushed up. In addition, Hetzel (2012) notes that debts grew faster than income and in the long run more people were unable to service their loans. This followed a financial crisis as the situation pushed banks to near bankruptcy and closure. One of the areas in the economy greatly affected by the recession of 2008 was employment sector. In light of the fact that a huge percentage of workers is presented by unions, this discussion elucidates the implications of the great recession of 2008 on U.S. unionization. To understand the implications of the 2008 great recession on U.S. unionization, it would be of significance to first describe unionization prior to the recession. According to the Bureau of Labor Statistics, the percentage of workers represented by unions was at the highest level in the 1950s at 35 percent of the entire workforce (Hetzel, 2010). In 1983, figures from the Bureau of Labor Statistics shows that 17.7 million workers were unionized (Hetzel, 2010). This figure represented 20.1 percent of the total workforce in the U.S. In 2009, Hetzel (2010) notes that the figure had dropped to 12.3 percent of the total workforce. Though the number of union members was reducing from the 1950s, the rate was stringent in 2009 and 2010 after the great recession of 2008. In 2010 for instance, approximately 612,000 union memberships were lost (Tilly, 2010). Before explicating the implications of the 2008 recession on U.S. unionization, it would also be important to demonstrate its impact on the rate of unemployment. Tilly (2010), in a documented material directed to the Global Labor University Conference in Berlin in 2010, asserted that the rate of unemployment peaked in the period following the great recession of 2008. In fact, Tilly (2010) notes that unemployment rate rose to