How do labor unions affect the economy

Labor unions can affect the economy by possibly providing higher wages for its workers, but it will simultaneously lower the profits made by the company, and create fewer jobs. This is because labor unions encourage the benefit of the workers (as the workers join together to fight for better treatment), but it will discourage other companies/businesses from investing in the company. So although it benefits the workers morally, it can negatively affect the success of businesses in the economy.