Final answer:
The growth in part-time employment does not have a positive impact on union density and is actually associated with a decline in union membership. Temporary agencies have reduced unemployment but not contributed to union density. Additionally, higher union density does not necessarily correlate with lower productivity growth in countries.
Step-by-step explanation:
The statement that the growth in part-time employment has a small, but significant, positive impact on union density is false. The increase in part-time and contract labor, characterized by the rise of the temporary worker industry, has not led to an increase in union membership. In fact, with the shift from manufacturing to service sectors and the prevalence of low-paying service jobs not eligible for benefits, union membership has declined. Temp agencies, by providing jobs for workers looking for permanent work, have helped reduce the natural rate of unemployment and frictional unemployment, without necessarily increasing union density.
Furthermore, when examining the relationship between union density and productivity, it's noted that there is no clear evidence suggesting that countries with a higher percentage of unionized workers have less growth in productivity. In fact, it is suggested that the social benefits of unions and the associated costs tend to counterbalance each other, not significantly affecting the overall economic growth rate of a country.