Unemployment rates are lower and wages are higher in right-to-work states

Map of right-to-work states: Michigan is #24
Map of right-to-work states: Michigan is #24

Previously, we saw that unemployment rates in right-to-work states were MUCH lower than in states that force workers to join unions and pay union dues in order to work.

Curtis sent me this article from Investors Business Daily, which looks at whether wages are lower in states that have right-to-work laws.

Excerpt:

The president says right-to-work laws mean “the right to work for less money.” So how does he explain the fact that incomes are up in RTW states while forced unionism is a proven job killer?

Campaigning Monday in Michigan as it stood poised to become the nation’s 24th right-to-work state, President Obama spoke the exact opposite of the truth to union workers at a Daimler Detroit Diesel plant in the birthplace of organized labor.

Is Obama telling the truth?

Let’s see:

According to Michigan’s Mackinac Center, using data taken from the Bureau of Economic Analysis and Bureau of Labor Statistics, private-sector, inflation-adjusted employee compensation in right-to-work states increased by 12% between 2001 and 2011 compared with just 3% over the same period in forced-unionization states.

These good wages came from good jobs. Employment in right-to-work states expanded 2.4% over the same stretch vs. a 3.4% decline in non-right-to-work states. Ironically, Obama is taking credit for jobs created in RTW states.

According to the National Institute for Labor Relations Research, right-to-work states (excluding Indiana, which passed a RTW law in early 2012) “were responsible for 72% of all net household job growth across the U.S. from June 2009 through September 2012.”

This is why people vote with their feet and move to these states. RTW states experienced large population gains of 15.3% from 2000 to 2010, compared to 5.9% in non-RTW states.

Obama did get one thing right, though, when he said the bills that passed both houses of the Michigan legislature “don’t have to do with economics. They have everything to do with politics.”

The president who fought Boeing’s expansion in RTW South Carolina knows it’s all about his keeping union dues flowing into Democratic coffers and maintaining the plush lifestyles of the union leaders who support him.

The right thing for Republicans to do when they get elected is to cut off all sources of funding for the Democrat Party. Right-to-work laws and school choice promote freedom and diminish the amount of power that left-wing, pro-abortion, pro-gay-marriage labor unions can exert. They will have less money, and with less money, they will have less influence on elections. Let the people decide, not the powerful, corrupt labor unions.

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5 thoughts on “Unemployment rates are lower and wages are higher in right-to-work states”

  1. Author completely misunderstood the very article he cited. The article states that wage growth in right-to-work states is higher than non right-to-work states. That does not imply that wages are higher on an absolute level.

      1. Yes, that’s what I said. The issue I’m pointing out is that the title of the article implies that absolute wages are higher.

        1. That’s more likely to be determined by the type of work being down. The main thing that we care about is that if you pass right-to-work laws, then the wages go UP. The right-to-work laws change things for the better.

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