Independent study commissioned by the Virginia Chamber shows law supports economic prosperity across Commonwealth

Richmond, Va. – A new report from Mangum Economics commissioned by the Virginia Chamber of Commerce finds that repealing Virginia’s Right-to-Work law would have long-term negative consequences for Virginia’s economy.

The report examines the economic performance of Right-to-Work states compared to non-Right-to-Work states over the last twenty-four years and finds that Right-to-Work states out-performed non-Right-to-Work states across a broad range of economic metrics. Among those were growth in new businesses, private employment, and average annual private wages.

Projecting those trends forward, the report finds that over ten years repeal of Virginia’s long-standing Right-to-Work law could depress growth in:

• Gross State Product by $36.8 billion
• Personal Income by $25.8 billion
• New Businesses by nearly 30,000 companies
• Total Private Employment by more than 180,000 jobs

The report also found that individuals make relocation decisions based on economic conditions, and Right-to-Work states have been remarkably successful at attracting residents seeking greater economic opportunity. Over the last fourteen years, Right-to-Work states experienced a net in-migration of 7.2 million residents, while non-Right-to-Work states saw a net out-migration of 7.1 million residents.

“For decades, Right-to-Work has helped make Virginia a place where businesses want to invest and people want to work,” said Keith Martin, interim president and CEO of the Virginia Chamber of Commerce. “The findings in this report support why maintaining the Commonwealth’s Right-to-Work law is important for Virginia’s long-term position as a top state for business.”

Additionally, the study determined that average wages for workers, including those in manufacturing and construction, would be negatively impacted. Based on national trends, without Right-to-Work, average annual wages are estimated to be more than $3,000 lower per worker, with manufacturing wage growth depressed by approximately $3,000 and construction wages by more than $5,000 per year.

To read the full report, click here.

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About the Virginia Chamber of Commerce:

The Virginia Chamber of Commerce is the largest business advocacy organization in the Commonwealth, with more than 30,000 members. The Virginia Chamber is a non-partisan organization that champions the interests of the business community in the legislative, regulatory, and political arenas to serve as the catalyst for positive change in all areas of economic development and competitiveness for Virginia. Learn more at www.vachamber.com

About Mangum Economics:

Mangum Economics is a Glen Allen, Virginia based firm that was founded in 2003. Mangum Economics specializes in producing objective and actionable quantitative economic research in support of strategic decision making.