For many jobs in Virginia, workers are required to get a license. But what’s the cost of all those licenses?
One out of five workers in Virginia need an occupational license. That’s a licensing system that creates losses to the Virginia economy of $173 million a year. That’s according to a new report from the Institute for Justice.
Lee McGrath is senior legislative counsel for the institute, and he says people can’t use their talents the right way so they end up doing something suboptimal. Meanwhile, the cost of services is inflated. He estimates that cost at $5.5 billion a year.
“So this is truly reflective of what happens when the state intervenes in labor markets and denies opportunities for people who want to work, makes it difficult for employers to hire people and causes consumers to have fewer choices.”
Every year in Richmond, lawmakers consider adding or removing licenses. Last year, for example, Delegate Mark Keam of Fairfax created a new license for people who do laser hair removal. This year, he took away a licensing requirement for people who blow-dry hair
“You’re got people who are using very intense electrical equipment to affect people’s body hair. On something like this, the reverse is we have people that are literally blow drying your hair, and there’s no health and safety aspect of that.”
McGrath suggests lawmakers should consider sun setting occupational licenses, making sure they are reviewed every five years or so to make sure licenses are really needed, and not just allowing people who have them to charge more money for their services.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
