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Labor unions, or trade unions as they are known in Europe, are organizations formed by workers in order to represent their collective interests, particularly in relation to wages and working conditions. Historically, labor unions emerged during the industrial revolution of the nineteenth century to represent the interests of industrial workers, who flocked to work in factories, mines, and other growing manufacturing enterprises. In most high-income countries, labor unions reached their peak during the , when governments mediated between the interests of labor unions and the owners of capital. With the , however, the labor movement suffered historic defeats in Europe and North America, with union density declining rapidly in many countries due to a host of pro-market and anti-union policies which have come to be referred to as 'neoliberalism'.

Labor unions today

In the twenty-first century, labor unions have retreated from their key role in national economic decisions in many countries, as has lowered barriers to movement of labor, enabled 'off-shoring' jobs to lower wage countries, and promoted the lowering of labor standards in order to pursue cost competitiveness. In spite of this trend, certain regions still showcase high levels of union density and retain their traditions of unions being involved in determining economic policy. Notably, the Nordic countries make up five of the top six most unionized countries, with Iceland in first place being followed by Denmark, Sweden, Finland, and then Norway.

Other notable trends among the top placed countries are states which have had a historical relationship with communism (often a key driver of the labor movement), such as Cuba, Vietnam, China, and Kazakhstan. In the wake of the , labor unions and the wider labor movement has become more prominent, as workers have sought to fight for health & safety conditions in the workplace, as well as to combat related to the pandemic.