Although policymakers of all stripes discuss the importance of “job creation” in the states, it is often government restrictions put in place by those very same policymakers in the form of occupational licenses that hinder employment opportunities. And the sad reality is that these restrictions often fall hardest on military members and their families who must frequently relocate on military orders. Or who, upon exiting the military, encounter difficulties receiving state recognition of the skills they have learned in the armed forces as they seek to apply those skills to civilian trades. Rather than exacerbate the problems that arise from high mobility rates for military families by erecting onerous occupational licensing requirements, states should seek to reduce or eliminate those barriers.
An occupational license is a government permission slip to work in one’s chosen field. Occupational licenses have been required for some professions, such as doctors and lawyers, for many decades. The historical justification for requiring government permission before engaging in such occupations is that government regulators can protect the public from harm or fraud by requiring that certain standards be met prior to engaging in dangerous or risky professions. Increasingly, however, there has been a growing trend toward prohibiting people from working or starting a business without first asking permission from government – even if they aren’t posing any health or safety threat to the public.
In the 1950s, only five percent of jobs required an occupational license. Today, roughly one in four jobs requires government permission.1 While fewer than 30 occupations are licensed in all 50 states (most of which are in the medical, dental, and mental health professions), over half of all state-licensed occupations are licensed in only one state—occupations including graphic designers, audio engineers, braille instructors, and travel agents.2 States require occupational licenses for professions as innocuous as chimney sweepers (in Vermont),3 bed salespeople (in West Virginia),4 or florists (In Louisiana).5
And each state has its own licensing requirements which often differ – sometimes significantly – from state to state. For example, Florida charges auctioneers $1,000 for a license and requires 19 days of training.6 Hawaii, by contrast, charges would-be auctioneers $15 and has no training or education requirements.7 These different requirements apply across professions and trades. So, a person can be a licensed real estate broker, or nurse, or barber in one state, but once that person crosses state lines cannot practice his or her profession, regardless of how long he or she may have been doing it.
These restrictions are often difficult enough for in-state residents to navigate. But when a highly mobile population – such as military families – must frequently traverse these barriers in several new states, problems abound, including unemployment.
Military members and their families move every two to three years while on active duty. According to a survey conducted by the U.S. Chamber of Commerce, 34% of military spouses surveyed reported moving four or more times, and more than 50% at least three times.8 That reality makes it exceptionally difficult for military spouses and other military family members to find stable employment and climb the career ladder.
As a result, while the unemployment rate in this country, at approximately 3.8%, is at historic lows, military spouses face an unemployment rate of 24%.9 And many more work only part-time jobs when they would prefer full-time employment: 32% of military spouses working part-time have reported that they would prefer full-time employment.10
These staggering unemployment rates exist despite high education attainment among military spouses. The U.S. Department of Labor reports that 30% of military spouses have a four-year degree, while 15% have an advanced degree.11 These education levels exceed those of the general population, of which, approximately 21% have a bachelor’s degree and 11% an advanced degree.12 What’s more, because of the frequent moves and necessity to independently manage a family’s affairs when military members are deployed or away at training, military spouses tend to be flexible and highly adaptable, character traits in high demand among employers.
Veterans also encounter difficulties from occupational licensing regimes as they transition from military service to civilian employment. The Department of Defense trains our servicemembers in a wide range of professions and occupations. As of 2017, 30,322 active-duty enlisted personnel received training in construction, 68,365 in health care, 129,209 in electronic and electrical equipment repair, 161,571 as engineers, and 160,690 as mechanics.13 Other military professions that translate seamlessly into the civilian workforce including police officers and firefighters. Yet despite military professionals being highly trained in their respective fields, often with vast experience in those fields, many states do not recognize military training and experience, or put up other occupational licensing barriers that are expensive or difficult for veterans to navigate.14 These restrictions make it more difficult for those exiting the military to find meaningful employment at home.
The reality of these state licensing laws is that they are making it more difficult for military members and their families to find stable employment, even though these population of workers are highly educated and well trained.