Does the dryer shrink your clothes?

As a follow up to the "do you iron your clothes" question, does anyone else experience significant clothes shrinkage (particularly for t shirts) when they put clothes in the dryer? This never used to be a problem, but no matter what settings I use, it always seems to shrink them now!

Anyone got any advice? I am currently hanging my best clothes to avoid shrinkage, but a better solution would be preferred.