Illinois is in trouble. For years, our state has been saddled with one of the highest unemployment rates in the nation – currently sitting at 5.3% or the second worst in the nation. While joblessness affects everyone, it disproportionately harms minorities and the poor – those who need opportunities the most.
Rather than improving this, the state has made it worse.
Illinoisans often feel trapped, with little room to climb the economic ladder. According to a report from the Archbridge Institute, Illinois ranks dead last in the Midwest for social mobility, and 40th in the nation. If we’re serious about creating opportunities for more of our neighbors, it’s time we tackle one of the key drivers behind this stagnation: our outdated and excessive occupational licensing laws.
Occupational licensing is when the government requires a license to work in a certain field. In some professions, like medicine, this makes sense. We all want doctors and nurses who meet a high standard of care. But Illinois goes too far, demanding licenses for jobs like barbers, community association management and even cemetery customer service.
In fact, nearly 25% of Illinois’ workforce – about 1.6 million people – need a government-issued permission slip to work. Another 5%, or 326,000 Illinoisans, must get certified just to do their jobs. These barriers not only limit job opportunities but also hurt workers’ wallets by imposing costly and time-consuming educational requirements.
This burden falls hardest on minority communities. Research from the Federal Reserve Bank of Minneapolis shows that occupational licensing disproportionately impacts Asian, Black, American Indian, and Latino workers, making them less likely to hold licenses than their white counterparts. This leads to fewer opportunities for communities already struggling with systemic disadvantages.
In Illinois, we license 41 low-income professions. This costs workers an average of 234 days of lost wages while they complete mandatory training. For example, while it’s already expensive to attend cosmetology school in the U.S., the average tuition is even higher in Illinois at $17,658. These are real barriers that keep people from earning a living.
The economic damage doesn’t stop there. Licensing laws in Illinois have resulted in approximately 135,000 lost jobs and cost the state over $15 billion in misallocated resources. This excessive regulation makes it harder for people to switch jobs, move across state lines, or simply pursue new opportunities. All of this happens without any evidence that these licenses improve job performance or public safety.
Thankfully, there’s momentum for reform. In 2024, the Illinois legislature passed bills that reduced licensing burdens for military families, aspiring nurses, dentists, pharmacy clerks, and counselors. These reforms are a step in the right direction, but we can and must do more.
In a recent report, I outlined a five-part plan to reform occupational licensing and open doors for all Illinoisans:
Sunset Review Process: We need an effective process to regularly review existing licensing laws to make sure they aren’t more burdensome than necessary. Illinois has had a law for this on the books since 1979, but it’s been largely ignored. The Governor’s Office of Management and Budget needs to conduct more rigorous reviews.
Eliminate Unnecessary Licenses: Illinois should remove licenses for professions that are practiced safely in at least 10 other states without regulation. For example, Illinois is one of just 17 states that licenses hair braiding and one of only 12 that licenses locksmiths. This is unnecessary red tape.
Expand Apprenticeships: Illinois should allow people to earn a license through apprenticeships instead of costly, for-profit schools. We also need to expand secondary school apprenticeship programs for fields like cosmetology, so students can earn their licenses while still in school.
Online Learning: We should allow online self-paced education options for people who can’t take months or years of work to attend training programs. This would help working adults gain the skills they need to advance their careers.
Universal Licensing Recognition: Illinois should recognize licenses issued in other states. This would remove a huge barrier for people moving into Illinois, allowing them to start working immediately if they’re already licensed elsewhere. Twenty-six states have adopted some form of this reform, and Illinois should follow suit.
The recent reforms show that Illinois is ready to make a change, but we must keep the momentum going. By implementing these additional reforms, we can break down barriers and create real opportunities for all Illinoisans. It’s time to unlock the potential in our workforce and give people the freedom to pursue their dreams without unnecessary government interference.
