Deregulation and Anti-Union Attacks Are Actively Destroying the American Middle Class

US job openings dip to 7.19M, signaling a cooling market. Strong worker protections, not deregulation, are key to fair wages and job security.

Deregulation and anti-union attacks are actively destroying the American middle class FactArrow

Published: April 29, 2025

Written by Ramón Gilbert

A Labor Market at a Crossroads

The latest snapshot of America’s labor market landed with a quiet thud. Job openings in March 2025 plummeted to 7.19 million, down 288,000 from the prior month, marking the lowest level in nearly four years. For workers, this drop signals a cooling economy, one that still hums with opportunity but whispers warnings of fragility. Beneath the numbers lies a deeper truth: the labor market’s resilience hinges on the strength of its workers, not the whims of deregulation or corporate largesse.

This moment feels like a pivot point. The unemployment rate, now at 4.2%, remains historically low, and hires ticked up to 5.41 million. Yet, the steady quits rate of 2.0% tells us workers are holding fast, cautiously optimistic about their prospects. But optimism alone won’t secure a future where every American can thrive. The labor market’s health depends on policies that empower workers, not ones that strip away their protections in the name of flexibility.

For too long, the narrative around job growth has celebrated raw numbers while ignoring who benefits. Healthcare and social assistance, sectors dominated by women and people of color, drive nearly 40% of new jobs, yet these workers often face low pay and grueling conditions. Meanwhile, white-collar sectors stagnate, and federal government jobs, once a bastion of stability, face cuts under President Trump’s hiring freezes. The labor market isn’t just cooling; it’s splitting, leaving too many behind.

Advocates for working families see a clear path forward: strengthen unions, raise wages, and protect the laws that shield workers from exploitation. Without these, the promise of a robust labor market risks becoming a mirage, dazzling from afar but crumbling up close.

The False Promise of Deregulation

Some policymakers, particularly those aligned with President Trump’s agenda, argue that slashing regulations and weakening unions will unleash job creation. Their vision, outlined in initiatives like Project 2025, calls for states to sidestep federal labor laws, gutting protections like overtime pay and collective bargaining rights. They claim this will free businesses to hire and innovate. But history tells a different story.

Since the late 1970s, waves of deregulation and anti-union policies have eroded worker bargaining power, fueling income inequality while productivity soared. Wages for low- and middle-income workers stagnated, even as corporate profits ballooned. The decline in unionization, from 20% of workers in 1983 to just 10% today, correlates with a 50% drop in the share of income going to the middle class. Deregulation didn’t deliver broad prosperity; it concentrated wealth at the top.

The current push to restrict immigration and impose tariffs, championed by the same voices, threatens to tighten the labor market further. Sectors like healthcare and transportation, already stretched thin, rely heavily on immigrant workers. Cutting their numbers may raise wages for some, but it will also leave millions of jobs unfilled, driving up costs and choking economic growth. Workers don’t win when employers are starved of labor; they face burnout and instability instead.

Contrast this with the vision of worker advocates: a federal minimum wage that keeps pace with living costs, expanded union rights through measures like card check, and robust enforcement of labor standards. These policies don’t stifle growth; they ensure it benefits everyone, not just the C-suite.

Building a Labor Market for All

The labor market’s bifurcation demands urgent action. Workers without college degrees, particularly in healthcare and hospitality, face a tight market with more jobs than candidates. Yet, these roles often come with meager wages and little security. College-educated workers, meanwhile, struggle to find roles matching their skills, especially in tech and white-collar sectors hit by efficiency drives. This divide isn’t natural; it’s the result of policy choices that prioritize corporate interests over human needs.

Raising the federal minimum wage would directly lift millions of frontline workers, who are disproportionately women and people of color. Expanding paid leave and ensuring access to benefits like health insurance and retirement savings would stabilize lives and boost productivity. Strengthening unions, which have historically narrowed racial and gender wage gaps, would give workers the power to demand fair treatment. These aren’t radical ideas; they’re proven solutions rooted in decades of evidence.

The New Deal era showed what’s possible when government prioritizes workers. Policies like the Fair Labor Standards Act and the National Labor Relations Act built a middle class that powered America’s prosperity. Today, as job openings dwindle and economic headwinds like tariffs loom, we need that boldness again. Workers can’t afford a labor market that leaves them scrambling for scraps while corporations hoard the feast.

A Call to Protect the Future

The March 2025 job numbers aren’t just data; they’re a warning. A labor market cooling under the weight of tariffs, federal cuts, and demographic shifts demands policies that put workers first. Advocates for fair wages and strong unions offer a vision of an economy where growth lifts every American, not just the privileged few. Ignoring their call risks a future where job openings vanish, wages stagnate, and inequality festers.

America’s workers built this nation’s prosperity, and they deserve a labor market that honors their contributions. By rejecting deregulation and embracing policies that empower workers, we can ensure that the next chapter of our economy is one of shared success, not fractured dreams.