(The Center Square) – Virginia ranks 17th and Maryland 44th in a new national labor policy report evaluating state laws that, according to its authors, shape job access, worker mobility and economic opportunity.
The report, released by the American Legislative Exchange Council, or ALEC, scores states across 10 policy areas, including licensing rules, union regulations, minimum wage levels and public-sector job reliance.
ALEC, which promotes limited government and market-oriented policies, ranks states higher when they adopt what it calls pro-worker reforms that encourage employment growth and reduce regulatory barriers.
ALEC credited Virginia with 3.5 out of 10 stars. It highlighted the commonwealth’s adoption of a universal licensing law, which allows professionals moving into the state to continue working without reapplying for licenses.
The report also noted Virginia’s right-to-work law and low union membership rates. Just over 11% of the state’s public-sector workforce belonged to a union in 2023, and 2.4% of private-sector workers were union members, placing Virginia in the top five for lowest unionization.
Maryland received just one star, with the report citing stricter licensing rules, a higher minimum wage, and a larger government workforce. Maryland’s minimum wage was $15 as of January 2025, and 26% of public employees were union members. Both factors were cited as contributing to its lower ranking.
Virginia and Maryland, which share a border and a large regional workforce around the Washington, D.C. metro area, are frequently compared in national rankings.
Both states face similar demographic and economic conditions but take different approaches to labor policy.
Alan Jernigan, manager of ALEC’s Commerce, Insurance and Economic Development Task Force, said Maryland is “caught in the grip of California-style policymaking, and it’s showing.” He pointed to “high minimum wages, heavy government job reliance, and limited licensing reforms” as barriers to opportunity.
He added that Virginia “has an opportunity to lead the next generation of labor policy” by building on reforms already in place. “The foundation is there; what’s needed now is a commitment to bold, common-sense action that clears the way for innovation, entrepreneurship, and upward mobility,” he said.
The report also weighed the share of government jobs in each state. Public-sector jobs made up 17.5% of Virginia’s nonfarm employment in July 2024, ranking 36th out of 50 states in this category.
Maryland ranked lower, at 43rd, with nearly 20% of its workforce in government roles. ALEC favors states with smaller public workforces, viewing them as more flexible and market-driven.
Private-sector job growth over the past decade was another major factor. Virginia ranked 19th nationally with 13.6% growth between 2014 and 2024. Maryland’s private-sector employment grew by just 4.9% over the same period, ranking 41st.
The report also considers how states handle occupational licensing barriers for people with criminal records. ALEC’s model policy encourages review processes that allow individuals with past convictions to pursue careers unless the offense is directly related to the job.
Maryland does not have a petition process for this, while Virginia earned partial credit for including broader review language in its licensing law.
