There are several factors that cause employment gains and losses across states, regions, as well as nations.
Political climates, tax and regulatory burdens, as well as union density are among the factors that can affect a state’s employment.
Whether or not a state has laws that prohibit unions from requiring union fees as a condition of employment (aka Right-to-Work laws) appears to be another factor that impacts job growth (or decline) in the manufacturing sector, according to the National Right to Work Committee.
Citing data from the U.S. Commerce Department’s Bureau of Economic Analysis (BEA), the NRWC notes that “a record 47.6% of the entire U.S. manufacturing output last year occurred in states that had prohibited compulsory union dues and fees.”
The contrast between becomes more apparent when one looks at the states with the worst records on manufacturing growth—nine of the bottom ten states are not Right-to-Work states.
Total 2003-2013 GDP growth in the 22 states that had Right to Work laws on the books throughout the period was 21.5%, significantly greater than the national average and 6.8 percentage points greater than the average for states lacking Right to Work protections throughout the period.
In the manufacturing sector, Right to Work states’ growth advantage was even wider.From 2003 to 2013, Right to Work states’ real manufacturing GDP increased by 26.1% — or almost double the forced-unionism average.
Nine of the 10 states showing the greatest declines in manufacturing GDP lack Right to Work laws. But nine of the 12 states with the greatest manufacturing GDP gains are Right to Work. [Emphasis added.]
As much as union bosses hate Right-to-Work states, the fact remains that, in terms of job growth or decline, it matters.