Breaking down barriers to occupational licensure and its benefits

If you work in education, health care, construction, or another skilled labor field, it is possible you will need an occupational license at some point to progress in your career. Occupational licensing is a form of industry regulation requiring a license to pursue a particular profession or vocation for compensation.  Nationally, more than 20 percent of workers hold an occupational license. Compared to their unlicensed counterparts who work in the same field, licensed workers hold jobs longer, have fewer part-time jobs, and are less likely to be unemployed.

The median wage of a licensed worker in the United States is $25/hour, compared to $18.80/hour for an unlicensed worker. Earning an occupational license provides a demonstrable advantage in the labor market, but according to a new report by the Brookings Institution, occupational licensing is a bit of a double-edged sword.

Occupational licenses can be difficult to obtain. Fees and required training can cost thousands of dollars, creating a barrier to entry for someone who is already struggling to earn a living wage. Such barriers can contribute to labor market dynamics that restrict the supply of workers in that occupation. The more difficult it is to obtain a license, the more licensed workers have a competitive edge. This is to the detriment of unlicensed workers who must crowd to lesser-paying entry-level jobs with fewer barriers to entry.

Many of the job training programs in which Partner4Work invests are working to ease the burden of obtaining an occupational license for people determined to advance their careers and improve their earnings, but who don’t have access to the opportunity. Job seekers can earn a license or credentials counting toward a license through short-term credentialing programs like QuickTrain, TechHire Pittsburgh, and a Microcredentialing program in partnership with Community College of Allegheny County. Job seekers can also access a number of resources through PA CareerLink®, including funding support for training and occupational licensing fees.    

Partner4Work and our partner organizations are committed to helping all individuals find opportunities for employment, including affordable access to education and training. Earning an occupational license in a high-demand occupation can be a game changer for one’s economic mobility, so working to break down these barriers is an obvious benefit for job seekers.

Author: Matt Aelmore, Ph.D., Program Evaluation Manager with Partner4Work