Final answer:
By the 1880s, labor unions like the National Labor Union advocated for improvements such as an eight-hour workday, while the emergence of the AFL marked a significant step for skilled laborers seeking wage increases through collective bargaining.
Step-by-step explanation:
The state of labor unions by the 1880s was characterized by the growth in awareness and active pursuit of better work conditions. Notably, the National Labor Union (NLU) had become influential, championing for the eight-hour workday and managing to get it established for federal employees. This period also saw the emergence of significant labor organizations like the Knights of Labor and the American Federation of Labor (AFL), the latter being founded by Samuel Gompers in 1886. While the NLU and the Knights of Labor included more inclusive membership, advocating for the rights of women and minorities, the AFL was primarily for skilled workers and focused on wage increases through collective bargaining.