(The Center Square) – While Arkansas may have more professions that require a license to work than seen nationally, a recent report on occupational licensing in America shows the burdens placed on workers, meaning the time and money spent to obtain a work permit in the Natural State, has declined.
The Institute of Justice recently released its third edition of License to Work: A National Study of Burdens from Occupational Licensing, providing an updated look at the effects of occupational licensing requirements and changes in America since 2017.
The report analyzes the burdens occupational license has on workers in the U.S. in more than 100 low-income professions and ranks states and the District of Columbia on its findings. The study focuses on burden risks for workers related to the median cost it takes to obtain and/or maintain a certification or license, the average amount “days lost” to education and experience, and the percentage of occupations that require a license.
Arkansas ranked the 9th most burdensome state in the nation by IJ, mainly because of its high percentage of licensed occupations. According to the study, of the 102 professions surveyed, Arkansas requires 71% of the occupations, or 72 professions, to obtain licensure to work in the state. The national average is only 53%.
The burden rank of Arkansas – which focuses on just the time and money aspect – put the state at 29th in the nation, which was an improvement since the state was last evaluated by IOJ in its 2017 study.
“Burden rank improved 22 spots and combined rank improved 6 spots [for Arkansas] largely because of experience reductions for contractors,” the report states.
The data indicates that the amount of days and money spent on occupational licensing is slightly below the national average. Arkansans can expect to spend an average of 282 days learning their skilled trade, which is 68 days less than the national average of 350. Fees in Arkansas are around $267 per license, which is also lower than the collective national average of $284 per license.
Since 2017, the number of days spent on education in Arkansas has declined while fees continue to rise. Five years ago, the state required an estimated average of 642 days, indicating that the state has shaved a considerable amount of time from its licensing requirements. In contrast, fees for Arkansas in 2017 were listed as $246, indicating that licenses now cost an average of $21 more to get licensed.
“Fees changed most often and usually increased,” the study states. “[In Arkansas], experience decreased for 18 occupations, mostly contractor trades, while education and experience requirements were eliminated for shampooer. However, education for four other occupations rose.”
Arkansas’s overall licensing burdens trends, with the state driving up fees and reducing educational and experience requirements, are in line with national trends seen since 2017.
“Across all the licenses present in both the second and third editions of License to Work, average fees rose 3.5% from 2017 to 2022, but average days lost fell by nearly 6%, by far the largest change across our five burden categories,” the study states. “Occupational licensing burdens remain widespread and burdensome, albeit a little less so than a few years ago.”
