Last week, the pro-worker think tank National Institute for Labor Relations Research (NILRR) released a Fact Sheet entitled “Negative Employment Growth Since November 2001” that details how highly-unionized states are suffering a "lost decade" in terms of private-sector job growth, while the least-unionized states have benefited from a nearly 1.5 million private-sector job growth:
As of 2001, the year of the last national recession prior to the current one, 9.7% of private-sector employees nationwide were under “exclusive” union representation. But in 16 states – Alaska, Hawaii, Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, New Jersey, Nevada, New York, Ohio, Pennsylvania,. Washington, West Virginia and Wisconsin – 11.0% or more of private-sector workers were unionized.
From November 2001, the trough of the last recession, through June 2009, the most recent month for which non-preliminary, state-by-state payroll jobs data are available at this writing, these 16 heavily unionized states suffered an aggregate private-sector job loss of 990,000 – or 2.2% of their November 2001 total. Ten of the 16 states, or nearly two-thirds, had fewer private-sector jobs in June 2009 than they had had nearly eight years earlier.
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The overall job losses in states with average private-sector unionization were far smaller than in heavily unionized states, and the 16 states which had private-sector unionization of 6.0% or less in 2001 actually gained jobs.
These low union-density states are: Arizona, Arkansas, Florida, Georgia, Louisiana, New Hampshire, New Mexico, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, Utah and Virginia. They gained an aggregate of nearly 1.5 million private-sector jobs from November 2001 through June 2009. That constitutes a 4.5% increase.
Even with recent setbacks taken into account, fifteen of the 16, or 94%, of the lowest union-density states have experienced net job gains since November 2001.
Putting aside the inherent abuse of workers’ rights, the data clearly indicates that job growth is negatively impacted by Big Labor’s government-granted monopoly bargaining special privileges. Yet NILRR’s findings should come to no surprise to regular Freedom@Work readers, as we reported recently:
NILRR recently found an especially strong correlation between a state’s Right to Work status and its job growth, while employees in Right to Work states are benefiting from faster job growth and higher real purchasing power than their compulsory unionism counterparts.
History clearly demonstrates how union monopolists have hindered the creation of new jobs with costly operating procedures and wasteful work rules, especially during times of financial hardship. Meanwhile, union bosses use their monopoly bargaining and other special forced-dues privileges to fill their political coffers while proliferating Big Government-mandated regulations on job providers and higher taxes on employers and employees alike.
