Final answer:
The decrease in bargaining power of labor in the U.S. can be attributed to worker-friendly legislation reducing the perceived need for unionization.
Step-by-step explanation:
According to Financial Time's article written by Larry Summers, another reason that has decreased the bargaining power of labor in the U.S. is that the passage of worker-friendly legislation has made many workers feel less need for unions. This ironic twist arises because unions have historically advocated for these laws aimed at protecting workers, such as those regulating work conditions, overtime, parental leave, and pensions. However, as these laws are enacted, workers perceive a reduced need to belong to unions, thus decreasing the proportion of union workers over time.