Published
March 26, 2025
The economic impact of strikes manifests itself in various forms, ranging from decreasing productivity due to the temporary halt in operations to severe strains on supply chains.
For workers, strikes can often lead to reduced income and the curtailment —or sometimes—the elimination of their benefits. Thus, workers’ financial difficulties spur broader economic harm as they spend less in businesses throughout the economy.
To better understand these effects, consider the economic consequences of four major strikes in 2024. Each demonstrates how work stoppages impact employment, GDP, and income while posing challenges for businesses and workers alike.
Boeing Strike: September 13–November 4, 2024
The strike at Boeing facilities was one of the most significant labor actions of the year. Production halted for approximately two months, and when workers downed their tools, the effects cascaded across supply chains, contractors, support businesses, and the regional economy.
Local Economic Impact
- Total Jobs Lost (Direct + Indirect): 20,872
- Lost Economic Output (GDP): $5.7 billion
- Income Lost: $2.5 billion
- Labor Force Participation Decrease: 4,222 individuals
This strike impacted the company’s productivity and contributed to a measurable dip in the national labor force participation rate. Supply chains slowed, leaving businesses grappling with the fallout.
Port Workers Strike: October 1–3, 2024
Taking place over just three days, the port workers' strike managed to disrupt vital economic activity. With ports acting as the lifeline of supply chains, even a brief work stoppage affected industries across the nation.
Economic Impact
- Total Jobs Lost: 3,387
- Lost Economic Output (GDP): $442.1 million
- Income Lost: $250.7 million
Ships lined up outside the ports as the strike prevented unloading, threatening shortages of items ranging from bananas to auto parts. More than 120 container ships were in route, impacting the economy for weeks.
San Francisco Hotel Workers Strike: September–December 2024
The hospitality sector was hit hard by this strike, particularly in the San Francisco metropolitan area. For months, hospitality workers walked out, straining the tourism industry as well as local businesses that depend on it.
National Economic Impact
- Total Jobs Lost: 3,496
- Lost Economic Output (GDP): $700.9 million
- Income Lost: $378.2 million
Local Economic Impact
- Total Jobs Lost: 1,587
- Lost Economic Output (GDP): $430.2 million
- Income Lost: $212.3 million
Prolonged strikes disrupt tourism and business travel. For hotel guests, depending on staffing, the hotel had to shut down restaurants and bars and may not have received daily housekeeping.
Las Vegas Culinary Strike: November 15, 2024–January 24, 2025
The Las Vegas Culinary Strike may have been smaller in scale than other strikes, but it still left its mark. From casino workers to restaurant staff, labor disruptions added pressure to an already competitive service industry.
Local Economic Impact
- Total Jobs Lost: 271
- Lost Economic Output (GDP): $26.4 million
- Income Lost: $17.3 million
While the direct economic impact was more contained, this strike highlighted the vulnerability of sectors to modest disruptions.
Bottom Line
Strikes can often lead to lost jobs, lost income, and a decline in GDP, which affects companies, families, small businesses, and workers. By focusing on solutions that meet the needs of both workers and businesses, we can mitigate the economic impact of strikes.
About the authors
Michael Billet
Michael Billet, director of policy research for Employment Policy at the U.S. Chamber of Commerce, keeps members and internal Chamber policy staff abreast of pending labor, immigration, and health care legislation, as well as federal regulatory and subregulatory activities. He is also responsible for planning the Chamber’s annual workplace and community wellness forum.
