Occupational licensure – when the government mandates training, tests, and fees before someone can legally perform certain jobs – has a larger effect on the Michigan economy than any other labor issue. The state requiring this permission to work costs jobs and income and causes higher prices for consumers.
The state of Michigan requires occupational licenses for hundreds of jobs equaling more than one out of every five workers. These regulations have grown exponentially and are shown to kill jobs and harm returning citizens trying to rehabilitate themselves through work. The Michigan Legislature is tackling this problem through Senate Bill 40, which requires the state to review all licenses to make sure they are focused strictly on public health and safety.
By Jarrett Skorup
Licensing laws in Michigan raise prices for consumer by up to 30 percent, costs the state 125,480 jobs, and ensures citizens pay $10.4 billion annually in higher prices (or about $2,700 annually per household). The state also spends more than $150 million directly on licensing individual occupations.
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Raises prices for consumers by In 1950, less than 5 percent of workers were licensed; now about 30 percent of workers are. Almost every state licenses doctors, lawyers, dentists, opticians and other technical and specialized occupations and many of these requirements are similar across the states. But many states also require licenses for a range of other jobs, including auctioneers, court clerks, fishermen, floor sanders, painters, interior designers and tree trimmers. Altogether, Michigan licenses about 160 occupations.
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