What do the 10 best states for business (TX, FL, NC, TN, IN, AZ, VA, SC, NV, GA) have in common? They are all right-to-work states. What do the 10 worst states for business (MD, PA, HI, MI, CT, NJ, MA, IL, NY, CA) have in common? All but one are forced-unionism states. The one exception, Michigan, became a right-to-work state in December 2012. ‘Right-to-Work’ Economics explains what these laws mean for workers and businesses.
While right-to-work critics argue that the laws lead to lower wages, economists say when cost of living is taken into account, wages in union and right-to-work states are the same, or even higher in right-to-work states.
Since 2009, private sector employment has grown 4.9% in right-to-work states and 3.9% in other states. Notably, manufacturing employment has grown 4.1% in right-to-work states since 2009, versus less than 3% in other states.
Businesses are drawn to right-to-work states, as the laws make doing business less expensive. Editor in chief of Site Selection, a corporate real-estate magazine, Mark Arend explained that companies are more interested in right-to-work states and union states close to right-to-work states become much less appealing.