Co-authored by Kyle Doran, a Director at Social Finance.
In any given state across the country, individuals trying to improve their own economic wellbeing face a complex workforce training and licensure system. Imagine Andy, a person who wants to become a licensed heating, ventilation and air-conditioning (HVAC) contractor, for example. Based on an average of the requirements across 35 states, in order to work as an HVAC contractor, he must first gain over 1,000 cumulative days of experience and training, pay almost $400 in fees and pass two exams. This is a busy time for Andy, and in part due to his participation in this HVAC training, his income is much lower than prior to the program. Without full-time employment and the wages that come with it, transportation, childcare and other expenses become even more of a hardship, and he’s faced with the difficult decision of weighing the cost of a training program and expenses for these core necessities against the ultimate benefit of a more promising career.
Postsecondary institutions, job training programs and employers in the U.S. offer over 950,000 different kinds of credential opportunities, including professional licenses, according to Credential Engine. With this number of offered credentials, it can be difficult to determine which education and training programs will make workers competitive for employment. Moreover, it can be difficult for employers to know if a worker’s credential gives them the necessary skill set for a job.
Solutions to these realities involve making data on credentials, competencies and occupational skills fully transparent, including data on skills in greatest demand and where such skills are being taught. As more and more states work to build back a more inclusive and equitable workforce, credential transparency has come to the forefront. Particularly for licensed professions, credential transparency can provide clearer information for practitioners working to earn their license and for those already licensed professionals upskilling.
Veterans and military spouses are two groups that often face barriers to obtaining and keeping employments. Veterans often have difficulties marketing their skills for the civilian workforce as well as in translating their skills, training, education, and experience into a new field. On the other hand, military spouses have trouble with the frequent movies that are common with military families. With the increasing numbers of jobs that require an occupational licensure, it is important to lower any barriers to licensure that might further hinder these two groups from employment. Occupational licensing regulations that do not account for veterans’ skills and experiences can cause them to pay additional fees for education and training necessary for licensure that they might already have gained in the military. For military spouses, the frequent moves can make it more difficult for them to transfer their professional licenses across state lines, possibly needing to gain additional experience or pay extra fees to practice in a new state. Both instances can discourage these groups from entering the labor market, and states have been working to mitigate these effects.
Interstate compacts have a long history in licensing portability policy. These multi-state agreements provide shortened routes to licensing for professionals approved for practice in one state but who seek to work in another.
More recently, Universal License Recognition (ULR) — laws requiring licensing bodies to grant a license to a practitioner certified in another state — have been passed in 12 states. This trend in licensing policy represents a broader goal of states to lower barriers for professionals to enter a state’s workforce, while continuing to protect public health and safety. In that effort to expand eligibility to work, the implementation of ULR, as well as interstate compacts, must address the differences among states in licensing requirements for those with past criminal convictions. There are important variations in the crafting of these licensing laws that can have a significant impact on certain practitioners looking to move into a state with a universal license recognition law.
Since 2019, 14 states have either established or revised universal license recognition (ULR) laws. These statutes define a framework where a state determines its unique process to grant an occupational license to an individual who already holds a license in another state or U.S. territory. ULR laws generally set less restrictive and more uniform license portability standards across most or all licensed occupations in a state. However, such laws do not offer true reciprocity (instantaneous recognition of a license from another state) or the mutual recognition found in most interstate licensing compacts. While ULR laws may require an application process and discretion by the licensing board, they have the intended effect of lowering the threshold for license portability in a state and reducing time to licensure.
Immigrants comprise approximately one in six workers in the United States. Many states, including California and Missouri, provide avenues for immigrants to earn occupational licenses. These avenues allow states to fill labor shortages in certain occupations and keep skilled in-state workers. However, many immigrants still face barriers to licensure that may prevent them from entering the workforce. Some immigrants may face a barrier understanding unfamiliar technical language in the licensing process. Immigrants also are more likely to face financial barriers that make it more difficult to complete the licensing process, which usually involves several fees.
A majority of people in the United States support transitioning from fossil fuels to renewable energy, though the desired approach varies wildly. However, beyond a transition to renewables, there has been a steep decline in the use of coal fired power plants since in recent years with the rapid increase in natural gas use due to the popularization of hydraulic fracturing, more commonly known as fracking. From 2011 to 2019, coal production employment fell 42%, with the steepest decline occurring in the Appalachian region.
During the pandemic, many state occupational licensing bodies encountered barriers to their regular licensing processes. Issues with mailing delays, in-person training, exams, and fee collection prompted many executive orders and regulatory and legislative actions to waive some requirements for licensure. This has been especially important for meeting workforce shortages in healthcare and providing new ways to deliver and receive services, such as the expansion of telehealth practice. Outside of healthcare, the increasing number of jobs that require a professional license and the dramatic shift to a remote workforce has presented similar challenges and made clear the need for a more streamlined licensing process.
Because occupational licensure is largely created and implemented at the state level, there exists a patchwork of different policies and requirements for professional practice. This creates a consistent trend of veterans and military spouses having a greater barrier to licensed professions due to frequent moves and unrecognized training. Approaches to easing these challenges vary as state legislatures and governors have taken steps to do so. One example of attempting to remedy this problem is the formation of the Washington State Military and Readiness Transition Council (WSMTRC).
Founded in 2013, the WSMTRC is a joint project between a variety of executive agencies as part of the broader mission of veteran assistance in Executive Order 13-01. Since that time, the WSMTRC has consistently updated its goals and strategies with stakeholder input to better serve veterans and military spouses at key career transition points. With a new executive order (19-01) released in 2019, Washington further expanded the responsibility of state licensing agencies to assist veterans in their transition to civilian life.
Apprenticeships, an “earn while you learn” program with on-the-job training for future practitioners of a trade or profession, are an increasingly available pathway toward licensure in several states. According to DOL statistics, 94% of those who complete an apprenticeship program maintain employment and earn an average salary of $70,000. With such success stories, there has been a 128% increase in new apprenticeships since 2009 and 12,300 new apprenticeship programs created in the last five years. In 2021, numerous bills about apprenticeships and apprenticeship programs have been introduced in state legislatures across the country.