Federal data show Right-to-Work states are more economically prosperous

January 28, 2015

States with right-to-work laws have higher employment growth, higher GDP and higher wage growth than states without RTW-laws such as Illinois

CHICAGO (Jan. 28, 2015) – On Tuesday, Illinois Gov. Bruce Rauner proposed that individual communities be allowed to establish “right to work zones.” A new analysis by the nonpartisan Illinois Policy Institute finds that Illinois could see an economic boom if the state implements a Right-to-Work law.

Currently in Illinois, employees of a unionized workplace must pay money to a union as a condition of keeping their jobs because Illinois does not have a right-to-work law. This means teachers and employees of state government must pay money to a union whether they want to or not. But in states or communities with Right-to-Work laws, employees would have the power to choose whether they want to belong to a union and whether they want to pay money to a union. 

The Illinois Policy Institute reviewed data from the federal Bureau of Labor Statistics, and found that states with Right-to-Work laws have a tremendous economic advantage. The analysis of federal data found that states with Right-to-Work laws have: 

  • Higher employment growth than states without Right-to-Work laws, including the state of Illinois
  • Higher wage growth than states without Right-to-Work laws, including the state of Illinois
  • Higher GDP growth than in states without Right-to-Work laws, including Illinois

“No one should be forced to pay money to a union just to keep their job,” said John Tillman, CEO of the Illinois Policy Institute. “Just because you want to be a teacher or serve in state government doesn’t mean you should be forced to fill the coffers of powerful government unions. Not only is implementing a Right-to-Work law the moral thing to do; it’s also economically smart. People living in states with Right-to-Work laws make more money. These states have higher GDP growth and wages grow faster. Passing a Right-to-Work law is a critical part of turning around Illinois’ suffering economy.”

The Institute’s new report, “An economic profile of Right-to-Work states” is available online. 

For interviews or bookings: Nathaniel Hamilton or Diana Rickert (312) 607-4977.