The U.S. Department of Labor said its Employee Benefits Security Administration has issued a report to Congress detailing continued growth in employee ownership and outlining work to promote worker-owned businesses. The report covers employee stock ownership plans, worker cooperatives and employee ownership trusts, according to the provided news release.
The department said employee ownership has expanded over the past 10 years. ESOP participation increased by 8%, while the number of worker cooperatives more than doubled. Employee ownership trusts have also gained popularity since the first one was established in the United States in 2014, according to the release.
Assistant Secretary of Labor for Employee Benefits Security Daniel Aronowitz framed ESOPs as a way to turn workers into stakeholders. He said he was proud of the department’s work, along with efforts by states and community stakeholders, to make employee ownership an option for more American workers. His comments place the report within a broader policy push to connect employee ownership with financial security and workplace participation.
The report also updates Congress on EBSA’s Division of Employee Ownership, which was created in 2023. The division was established to support the creation and expansion of worker-owned businesses. Its early work includes outreach, education and stakeholder relations tied to the Employee Ownership Initiative, as well as support for new and existing state employee ownership programs.
Technical assistance is another part of the division’s work. The release says EBSA is providing early-stage help for employers and employees with questions about employee ownership. That support is intended to make the model easier to understand for businesses considering a transition and workers trying to understand what ownership could mean in practice.
The department has also expanded its Employee Ownership Initiative website. The release describes the site as a central location for resources offering simple, clear guidance on employee ownership for American businesses and workers. It also catalogs state employee ownership programs already operating in California, Colorado, Iowa, Massachusetts, Michigan and other states mentioned in the source material.
The report’s focus reflects growing interest in employee ownership as a business succession, wealth-building and workplace participation strategy. ESOPs allow employees to hold company stock through a retirement plan structure. Worker cooperatives give workers ownership and democratic control. Employee ownership trusts hold company ownership through a trust for the benefit of employees. Each model differs, but all are grouped in the release as forms of worker ownership.
The figures cited by the department give the announcement its clearest news value. An 8% increase in ESOP participants over a decade suggests gradual growth in a mature structure. Worker cooperatives more than doubling points to faster expansion from a smaller base. The rise of employee ownership trusts since 2014 shows that newer models are gaining attention alongside more established ESOPs.
The release does not provide the full underlying dataset in the pasted material, so it is not possible here to evaluate the scale of growth by sector, region or company size. It also does not specify the exact number of ESOP participants, worker cooperatives or employee ownership trusts. Those details would be important for a deeper assessment of how broadly employee ownership is spreading.
Still, the report signals that the Department of Labor is treating employee ownership as an active policy area. By building a dedicated division, expanding guidance and working with state programs, EBSA is seeking to make the ownership transition process more accessible. The central question for businesses and workers will be how those efforts translate into durable companies, meaningful employee benefits and stronger financial security.