One in Five U.S. Jobs Still Require Government Licenses, New Report Shows

According to the Archbridge Institute's 2026 State Occupational Licensing Index, 22 % of employed Americans hold a government-issued license, spanning fields from physical therapy to cosmetology. The analysis points out that licensing requirements have largely plateaued, with few states moving to eliminate them, but many are beginning to accept out-of-state credentials. States such as Oregon, Texas, Tennessee, Arkansas and New Jersey rank among the most restrictive, whereas Missouri, Kansas, New York, Indiana and Colorado are comparatively permissive.

Researchers argue that licensing does not yield measurable public-health benefits and can raise costs for consumers while reducing job opportunities, particularly for immigrants. The report also documents uneven licensing across occupations, noting that doctors and nail technicians are licensed nationwide, while many other trades are regulated only in select states. Universal license recognition now exists in 28 states, with 11 earning a gold medal for unrestricted acceptance. Nonetheless, the authors contend that broader reforms are needed to lower barriers to work and enhance labor mobility.