Late last month, Federal Trade Commission (FTC) Chairman Andrew Ferguson issued a directive forming a joint labor task force to investigate harms to workers from occupational licensing. In a new insight, Director of Competition Policy Fred Ashton and Savanna Scott explain how the task force plans to suggest state-based reforms to occupational licensing regimes and study how professional associations heighten barriers to entry through increased occupational licensing requirements.

They conclude:

FTC Chairman Ferguson’s directive shows the agency will continue to prioritize labor markets in competition enforcement. Occupational licenses, particularly those advanced by professional associations, are a likely target of future enforcement actions.

The FTC should take advantage of the reform movement currently underway at the state level by continuing to advocate for changes to occupational licensing regimes. Moreover, the agency should study how professional associations heighten barriers to entry through increased occupational licensing requirements.

Read the analysis.