AWF Fact of the Day #2: Unionization Leads to Higher Unemployment

Tuesday, July 21, 2009 5:18 pm

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AWF Labor Fact of the Day #2: Unionization Leads to Higher Unemployment

AWF raises awareness about the relationship between labor laws & the economy

WASHINGTON, D.C. — The Alliance for Worker Freedom (AWF), an organization established in 2003 to combat anti-worker legislation and promote free and open labor markets, is releasing labor facts to help raise awareness about the relationship between labor laws and economic performance.

Fact: Four out of the five states with the highest unemployment rate are at least 33% more unionized than the national average.

The Bureau of Statistics released its most recent state unemployment figures last month.. In descending order, the states with the five highest unemployment rates are: Michigan, Rhode Island, Nevada, South Carolina, and Oregon, with unemployment figures ranging from 15.2 to 12%. All of these states, except South Carolina, are significantly more unionized than the rest of the U.S., where only 12% of people are unionized. 

“There is a clear correlation between state unemployment and unionization percentages," said Brian Johnson, Executive Director for Alliance for Worker Freedom. “Unions stifle competition which results in less innovation, and ultimately fewer jobs. It is amazing that politicians even consider legislation that encourages unionization, ignoring its direct, negative effect on employment.”

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