Labor Secretary Alexander Acosta calls for occupational licensing reform
by Sean Higgins | Jul 21, 2017
Labor Secretary Alexander Acosta called Friday for federal reform of occupational licensing laws, the rules that prohibit people from working in certain fields without a government entity's permission.
He argued that the rules often unnecessarily restrict people from entering numerous professions, which hurts the economy.
"Granted, many licenses have valid reasons, particularly when they focus on health and safety. Certifying skills and specialized knowledge helps consumers. That is far different, however, from using licensing to limit competition, bar entry, or create a privileged class. Excess licensing hinders the American workforce," Acosta said in a speech Friday to the American Legislative Exchange Council in Denver.
Acosta said the "cost and complexity" of licensing hurts Americans looking for employment, poorer ones in particular because it makes it harder for them to land better-paying jobs. It also prevents many people from moving to another state since licenses often don't carry over from one jurisdiction to another.
The labor secretary noted that in 1950 only about 5 percent of jobs required workers to get some form of license. That has risen to more than 25 percent.
Critics have argued that in many cases the need for the license doesn't exist. In many states, for example, beauticians must be licensed.
A 2015 study by the Brookings Institution found there were "far more cases" in which licensing reduced employment than ones where it improved the quality and safety of services. The restrictions have resulted in 2.8 million fewer jobs nationally and raised consumer costs by $203 billion annually, Brookings found.
"Taking up this issue is one way that you, as legislators, can have immediate, consequential, and measurable impact. You have a tremendous opportunity to help create millions of jobs, without spending a dime. The Trump administration is committed to working with you to strengthen our economy and empower the American workforce," Acosta told the audience, which included state lawmakers.
It is a bipartisan issue. The Obama administration endorsed occupational licensing reform as well. Former President Barack Obama's 2015 budget request for the Labor Department included $15 million to "help a consortia of states identify, explore, and address areas where licensing requirements create barriers to labor market entry." The budget proposal noted that licenses often involve "unnecessary training and high fees" that create a "barrier to labor market entry or labor mobility."
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Originally Posted by TheCount
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