From 1978 through 2000, RTW states had lower average annual
unemployment rates for all but 5 of 23 years. Right-to-work
states also weathered the 1990-91 recession better, with
unemployment rising only 0.43 percent (from 1990-91) compared to
a 1.13 percent rise for non-RTW states. The unemployment gap
between RTW and non-RTW states dissipated during the 1990s,
reflecting a national trend toward tighter labor markets (and
full employment) in most states. This phenomenon produced labor
shortages which were more acute in RTW states. Michigan's
unemployment rate averaged 8.1 percent from 1970-2000,
significantly higher than the 5.8 and 6.3 percent average for
RTW and non-RTW states, respectively. While Michigan's average
rate did fall below the national average during much of the
1990s, this was more a consequence of slower growth in
Michigan's workforce (i.e., fewer eligible workers), not faster
employment growth. See Chart 8.