Legislators and experts alike agree that human resource development will be one of the key issues at the Georgia General Assembly at this session, and that reform can’t come soon enough.
Despite being the number one state for business, the Peach State has historically made it difficult to get a job and fill labor shortages.
One of the most onerous government barriers to employment are work permits, which are essentially permits you must obtain from the government to work in many jobs. Although ostensibly to protect the public, they often limit competition within industries and can benefit industry insiders more than consumers.
About 30 percent of workers require a work permit, and obtaining one can be difficult. Potential employees often have to pay fees, take courses and pass state-approved tests. Of course, this has an impact on the overall economy.
Studies have shown that licensing requirements can result in three million fewer jobs across the country, cost Americans hundreds of billions of extra dollars a year, and may not serve the public as much as one would hope. A report by President Barack Obama’s administration noted, “Most empirical evidence does not show that tighter licensing requirements improve quality, public safety, or health.”
While some professional licenses – for example for doctors – are essential and serve a purpose, license conditions should be reasonable.
According to the Institute of Justice, Georgia has the 12th most burdensome professional licensing regulations for low-income professions. The state charges, on average, more than “$185 in fees, 464 days of education and experience, and about two exams,” IJ noted. Additionally, in most cases, Georgia refuses to recognize foreign licenses from people moving here, forcing them to start the expensive and time-consuming licensing process all over again.
Meanwhile, the state faces a serious labor shortage. Some sectors are particularly affected – first responders and healthcare professionals. This is especially true for Georgia, which has some of the worst nurses per capita and doctor-to-patient ratios.
A 2018 report found that 64 counties did not have a single pediatrician, 79 had no obstetricians/gynecologists, and nine counties had no physicians. Since then, the situation does not appear to have improved significantly. “About a third of Georgians, or 3.3 million, live in an area with a lack of primary care,” writes the WUGA.
Similarly, the National Police Foundation announced that 86 percent of the country’s police departments are understaffed. Many of these departments are right here in Georgia, from Chatham County to Atlanta to Gainesville. In addition, Georgia communities are struggling to fill their ranks of firefighters and EMTs.
These labor shortages are at the expense of Georgia’s public health and safety. Closing these gaps has proven to be a tough proposition considering there is only a limited pool of potential workers. The Peach State’s unemployment rate is a low three percent, and “before COVID, there were three open positions for every person looking for a job in our state,” according to a 2022 report by the Georgia Chamber of Commerce. Now, as the economy has largely recovered from the COVID-19 shutdowns, we are likely facing a similar situation.
Given these realities, one of the surest ways to address Georgia’s labor shortage is to encourage experienced first responders and medical professionals from other states to relocate here. This is not easy, especially when they understand that their spouses will struggle to find employment due to unnecessarily burdensome and duplicate professional licensing requirements.
In response, Rep. Chuck Martin, R-Alpharetta, introduced legislation to ensure many of those who move here, particularly spouses of first responders and medical workers, can more easily obtain government work permits. The measure would direct licensing boards to offer them a license by endorsement if they meet certain criteria, including possession of an out-of-state license in good standing substantially similar in scope and qualifications to Georgia’s.
Ultimately, this will make it easier for families of first responders and healthcare professionals to relocate to the Peach State – greatly benefiting Georgians and addressing labor shortages. However, this will not solve many of the broader problems with professional licensing, but lawmakers have recognized the need to do more.
Sen. Larry Walker, R-Perry, introduced SR 85 to establish the Senate Professional Licensing Study Committee. If approved, its members would explore how to safely and responsibly reduce the burden of licensing to practice – an important step in fixing the current system.
These laws are very similar to measures pushed for by former senator-turned-labor commissioner Bruce Thompson over the past year, and both have enjoyed widespread support. Indeed, Thompson’s SB 352, which mirrors Rep. Martin’s bill, passed both chambers unanimously but ultimately failed to become law due to procedural quirks and political magnanimity.
With the well-being of Georgians at stake and facing rampant labor shortages, the legislature must act quickly and decisively this year.
Marc Hyden is Director of State Affairs at the R Street Institute. You can follow him on Twitter at @marc_hyden.
