The landscape of organized labour in Canada is undergoing a significant transformation, marked by a pronounced and growing divide between the public and private sectors. According to a recent analysis, the traditional trade union model is facing sustained pressure from technological change, shifting employment patterns, and evolving workplace demographics.
A Steady Decline in Union Coverage
Data from the Organisation for Economic Co-operation and Development (OECD) paints a clear picture of a long-term trend: union coverage, which measures the proportion of workers under a collective agreement, has been declining across most advanced economies for decades. Since 1985, the share of unionized workers has fallen by approximately half globally. Canada has followed this pattern, with national union density dropping from 38% in 1981 to roughly 30% in the years following the COVID-19 pandemic.
The core of this decline is centred in the private sector. As of 2024, only 15% of private-sector employees in Canada held union membership. This stands in stark contrast to the public sector, where between 60% and 80% of workers in government, education, healthcare, and social services are unionized. This means public sector workers are five times more likely to belong to a union than their counterparts in private industry.
Forces Reshaping the Labour Market
Several interconnected factors are driving this divergence. A primary cause is the shift in where jobs are being created. Net employment growth has been concentrated in private-service industries such as retail, finance, information technology, and professional services—sectors that have historically had below-average unionization rates.
Concurrently, the rise of the "knowledge worker"—highly educated professionals in fields like tech and scientific services—has presented a challenge for unions. These workers often pursue flexible career paths and continuous skill development, and unions have had limited success organizing them outside of government.
The Rise of Non-Traditional Work
The very nature of work is changing, further complicating union organizing efforts. Compared to thirty years ago, a larger share of employment is now part-time, involves "gig" economy positions, or is based on self-employed contracting. The increase in remote work also alters traditional workplace dynamics. These developments create less stable environments for collective bargaining.
Furthermore, heightened global competition and technology-driven business practices have constrained unions' ability to secure wage increases that outpace productivity gains.
The analysis concludes that while unions are firmly entrenched in Canada's public sector, they continue to lose ground in the dynamic private economy. This pattern, shaped by deep structural forces, is expected to persist in the coming years. The data underscores a fundamental split in the Canadian labour experience, divided along sectoral lines.
