July 30, 2009

Unemployment and Unionization

Economists often talk about unionization, wages, and unemployment. Well, I decided to test it myself. So, here are the numbers (Unionization rates from fiscalpolicy.org):


Top Ten State Unemployment Rates, June 2009 / Unionization Rates

Michigan 15.2% / 21.3%
Rhode Island 12.4% / 16.4%
Oregon 12.2% / 15.6%
South Carolina 12.1% / 4.4%
Nevada 12.0% / 16.1%
California 11.6% / 17.6%
Ohio 11.1% / 16.1%
North Carolina 11.0% / 3.9%
Kentucky 10.9% / 11.2%
Tennessee 10.8% / 6.9%

Lowest Ten State Unemployment Rates, June 2009 / Unionization Rates

North Dakota 4.2% / 8.4%
Nebraska 5.0% / 9.7%
South Dakota 5.1% / 7.7%
Utah 5.7% / 6.4%
Wyoming 5.9% / 9.7%
Iowa 6.2% / 13.4%
Oklahoma 6.3% / 7.5%
Montana 6.4% / 13.5%
LA, NH, NM (tie) 6.8% / 7.6%, 11.3%, 10.7%


Clearly, the high union states have higher unemployment (There are only 5 exceptions on these lists -- SC, NC, TN, IA, and MT). Labor's defenders would have you believe the unionization follows unemplyment, but I doubt it. How could you get so many people to join a union if they are not working. Isn't that, uuuhhhh, a prerequisite???

Unionization is supposed to make it more difficult for companies to fire workers. However, don't you think that companies know this? So how do they react?? By not hiring in the first place. Especially at so-called prevailing wages.

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