(The Center Square) – A new labor policy report has ranked Arizona as the top state for worker freedom and pro-growth labor reforms.
The American Legislative Exchange Council published its third edition of “States That Work: A Labor Policy Roadmap Across America”. This report details the states where workers have the most economic freedom.
Arizona did much better than the Southwestern states of California, Colorado and Nevada in the report, which was released Tuesday.
ALEC CEO Lisa B. Nelson said some states are “embracing reforms” while others continue to use “outdated mandates that drive prosperity away.”
“This is more than a ranking. It’s a wake-up call for lawmakers who want their state to thrive in today’s economy,” she said.
Alan Jernigan, manager of the ALEC Commerce, Insurance and Economic Development Task Force, said Arizona has “emerged as the model for what labor policy can look like in a free and prosperous society.”
When a state removes artificial barriers such as licensing red tape or union release time, “it invites growth, innovation and mobility,” Jernigan said.
“That’s why more than 600,000 Americans packed up and moved to the Grand Canyon State in the last decade. They’re not just moving. They’re choosing freedom,” Jernigan explained.
The report said Arizona received the highest ranking due to creating universal recognition of occupational licenses, eliminating union release time, having the eighth lowest percentage of state government jobs and maintaining its Right-to-Work laws.
As a result of all these policies, the state positioned itself “as a destination for talent, entrepreneurship, and economic growth.”
Elsewhere in the Southwest, ALEC ranked Colorado at 29th, Nevada at 25th and California at 39th.
Colorado “talks a good game, but struggles to deliver,” Jerningan said. He pointed out it “has the potential” to improve its ranking due to its laws regarding licensing.
However, Jerningan said without Right-to-Work laws and clearer worker standards, “too many workers are left waiting for the promise of reform that never arrives.”
As for Nevada, the ALEC manager explained it “gets a lot right.” He said the state has Right-to-Work, strong license recognition and a small government sector.
Jerningan said Nevada “makes it attractive for mobile workers and growing businesses.”
Even with this, he said the state needs to “double down on worker freedom if it wants to sustain long-term growth and dynamism.”
At 17.72%, California showed a lower growth rate from 2014 to 2024 for private sector employment than Arizona in the report. Arizona’s growth during the same period was 31.36%.
Besides Arizona, the neighboring state of Utah did well in the report, ranking second in the nation. The report, which discussed the challenges posed by government regulations, noted Utah, Arizona and Colorado made significant progress in reducing licensing barriers and creating new pathways for businesses.
