Better for Public Budgets & Economy
Minnesota’s unionized construction is not only good for workers and cost competitive—it strengthens public budgets and our economy.
According to University of Minnesota economists, “union members contribute approximately $1,110 more in taxes and receive about $180 less in social safety net benefits, on average, than nonunion workers—positively impacting public budgets by $1,290 per member.”
In Minnesota’s construction industry, the effects are even more pronounced, with union construction workers contribute nearly 50% more in state and federal taxes on average, while being 13% less likely to rely on publicly funded assistance programs like Food Stamps and Earned income tax credits.
Local businesses and communities can also benefit. Research has found that strong labor standards, such as those negotiated through collective bargaining agreements, can increase the share of construction bids being awarded to Minnesota-based firms by as much as 10%.”
More broadly, the income earned and spent by union workers in Minnesota translates to jobs and growth across other parts of the economy. It is estimated that annual consumer spending by Minnesota’s 41,000 unionized construction workers supports nearly 16,000 additional jobs in healthcare, transportation, business services, retail and other sectors, growing the state’s annual economic output by nearly $2.7 billion.