Kentucky’s labor market continues to struggle compared to neighboring states and the national average with an unemployment rate of 4.7% – significantly higher than the national average of 4.3%. In contrast, states like Indiana and Virginia boast unemployment rates of 3.6%; Arkansas and West Virginia stand at 3.8%.
A significant factor holding Kentucky back is its occupational licensing system – one of the nation’s most restrictive – which creates unnecessary barriers to employment. Occupational licensing requires individuals to meet state-mandated requirements, including education, training, exams and fees, before they can legally work in certain professions.
While licensing is universal for some occupations like physicians and lawyers, Kentucky goes further, licensing 177 of the 254 occupations studied in a national report I coauthored for the Archbridge Institute. This makes Kentucky the fourth-most burdensome state, just behind Oregon which licenses 182 occupations. By comparison, Kansas – the least restrictive state – licenses only 122 and Indiana 134.
This excessive licensing stifles Kentucky’s workforce. Research shows that occupational licensing reduces employment by up to 27%.
Kentucky policymakers should consider two common-sense reforms that would open up its labor market.
Continue reading at Kentucky Today.
Edward Timmons, PhD, is Vice President of Policy at the Archbridge Institute. He leads the institute's economic policy strategy, identifying focus areas and disseminating work to key stakeholders and policymakers. His own research focuses on labor economics and regulatory policy; he is regularly asked to provide expert testimony to U.S. states on occupational licensing reform and the practice authority of nurse practitioners. Dr. Timmons received his Ph.D. in economics from Lehigh University and his B.A. in economics and actuarial science from Lebanon Valley College. He publishes a weekly newsletter on Substack with the latest research and policy insights surrounding occupational licensing.
Economics of Flourishing
Kentucky’s labor market continues to struggle compared to neighboring states and the national average with an unemployment rate of 4.7% – significantly higher than the national average of 4.3%. In contrast, states like Indiana and Virginia boast unemployment rates of 3.6%; Arkansas and West Virginia stand at 3.8%.
A significant factor holding Kentucky back is its occupational licensing system – one of the nation’s most restrictive – which creates unnecessary barriers to employment. Occupational licensing requires individuals to meet state-mandated requirements, including education, training, exams and fees, before they can legally work in certain professions.
While licensing is universal for some occupations like physicians and lawyers, Kentucky goes further, licensing 177 of the 254 occupations studied in a national report I coauthored for the Archbridge Institute. This makes Kentucky the fourth-most burdensome state, just behind Oregon which licenses 182 occupations. By comparison, Kansas – the least restrictive state – licenses only 122 and Indiana 134.
This excessive licensing stifles Kentucky’s workforce. Research shows that occupational licensing reduces employment by up to 27%.
Kentucky policymakers should consider two common-sense reforms that would open up its labor market.
Continue reading at Kentucky Today.
Edward Timmons
Edward Timmons, PhD, is Vice President of Policy at the Archbridge Institute. He leads the institute's economic policy strategy, identifying focus areas and disseminating work to key stakeholders and policymakers. His own research focuses on labor economics and regulatory policy; he is regularly asked to provide expert testimony to U.S. states on occupational licensing reform and the practice authority of nurse practitioners. Dr. Timmons received his Ph.D. in economics from Lehigh University and his B.A. in economics and actuarial science from Lebanon Valley College. He publishes a weekly newsletter on Substack with the latest research and policy insights surrounding occupational licensing.
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