Louisiana needs to reform its stringent occupational licensing system to improve economic mobility for low- and moderate-income residents and expand job opportunities, according to a new Pelican Institute for Public Policy report.
Louisiana’s rules for licensing occupations such as florists, interior designers and massage therapists are the most stringent in the nation, the report states, leading to excessive barriers to employment and lost economic opportunities. Well over one-fifth of workers in the state have to earn a license to work in their field – the highest rate among all Southern states, according to the Pelican Institution.
“As of 2017, Louisiana licensed 77 of the 102 low- and moderate-income professions … tied for the largest number of this category of licensed professions in the U.S.,” the report, titled “When the Entrepreneurs Go Marching Out,” says.
A spokesman for the policy institute said state lawmakers should take up the issue of reforming occupational licensing laws as soon as possible.
““We believe now is the time to address these government-induced barriers to opportunity,” Ryan Roberts said in an email to the Louisiana Record. “Coming out of the COVID-19 pandemic, it is clear that the state should be doing everything possible for Louisianans to find work and provide for their families. We have seen one of the slowest recoveries from the pandemic, and addressing our burdensome occupational licensure requirements is a key step in restoring people's right to earn a living."
Any Louisiana licensing reforms should place the burden of proof about why licensing is needed on the state, the report says, adding that the reasoning needs to focus on public health, safety or welfare concerns.
In addition, the state needs to recognize the legality of out-of-state licenses as a way to attract skilled workers to Louisiana, according to the institute’s report. And formerly incarcerated residents should not be denied opportunities from state licensing boards, so long as their past convictions don’t relate to their chosen occupations, the report says.
“We require years of training and hundreds of dollars just for people to be able to get a job and put food on the table,” Daniel Erspamer, the institute’s CEO, said in a prepared statement. “Louisiana is one of the poorest states, and our job growth is stagnant. Now is the time for reform to allow people to find work and begin to build a better future for their families.”