Occupational Licenses

Occupational licenses, a barrier to individual prosperity

Occupational licensing - state regulation of particular jobs - presents barriers to the economic freedom of individuals. Over time, the state has increased regulation of occupations, thereby increasing labor costs and subsistence, and limiting opportunities for access to jobs and trades. This has raised concerns for individuals, legislators and multi-sector leaders who seek to reform the sector to promote freedoms, including economic freedom, and economic growth.

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Milton J. Quiles
April 7, 2023

Occupational licensing undermines some of the value of technological innovation

One particularly prevalent and pernicious form of regulation is occupational licensing. Occupational licensing is essentially a government issued permission slip required to enter certain regulated occupations. The share of U.S. workers required to hold an occupational license has exploded from around 5% in 1950 to 25% in 2020. Many occupations within the home services industry––which employs nearly six million American workers––require an occupational license, but states vary widely in which occupations they license.

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Vittorio Nastasi
December 21, 2022
Occupational licensing undermines some of the value of technological innovation

Supply crunch should spur states to pursue licensing reform

In today’s difficult labor market, it’s important that we remove unnecessary red tape. State legislatures may have good intentions when they pass licensing laws, but they make it more difficult for people to enter professions or start businesses. State governments shouldn’t be making matters worse with unnecessary barriers to opportunity.

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Conor Norris
April 19, 2022
Supply crunch should spur states to pursue licensing reform
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