This article originally appeared in The Detroit News March 18, 3025.

Voters, economists and even many lawmakers agree that excessive regulations stifle job growth. But ask politicians, “Which regulations would you cut?” and they may struggle to provide a single example.

Gov. Gretchen Whitmer, however, offered an excellent idea in her February State of the State address.

Specifically, Whitmer called for reforms to Michigan’s occupational licensing rules. These are the requirements that people undergo training and pay fees before they can work in a certain field. Whitmer told a story about a painter who moved to Michigan from Ohio. The painter was fined for working here, even though he had an Ohio license. Whitmer called this “ridiculous.” She’s right, but this is a common barrier for workers in Michigan.

The governor directed the Department of Licensing and Regulatory Affairs (LARA) to review Michigan’s licensing rules and find redundancies. She invited the Legislature to work with her to streamline job requirements.

For a governor hoping to boost her state’s job growth, occupational licensing is a good area to prioritize. Michigan licenses 180 occupations. One in five workers in the state is in a licensed occupation. Licensing requirements are costly and time-consuming, especially for someone entering a new field. Licensing also increases costs for consumers and restricts job growth. The state spends $150 million a year on its licensing bureaucracy.

Add to that the state’s head-scratching approach on which occupations it licenses and what requirements a job-seeker must satisfy. A childcare license requires six hours of training. Excavators, roofers and swimming pool installers need 60 hours. An emergency medical technician must complete 194 hours of training. Manicurists need 400 hours; cosmetologists need 1,500 hours and barbers must complete 1,800 hours.

Whitmer deserves credit for her past efforts, such as signing legislation that eased licensing requirements for members of the military and their spouses. But Whitmer’s decision to highlight licensing reform in her speech elevates the issue. It’s the first time she has mentioned licensing reform in a State of the State address.

Whitmer joins a bipartisan group of elected leaders interested in mitigating the burdens of licensing. Presidents Barack Obama, Donald Trump and Joe Biden all highlighted the issue, as did Whitmer’s predecessor Gov. Rick Snyder.

Whitmer asked the state licensing agency to “reduce barriers to professional licensure, to identify regulatory requirements that could be amended or eliminated, and to cut unnecessary red tape.” In February, LARA published “Cutting Red Tape: Recommendation to Protect People and Promote Business.”

The agency offered nearly 80 recommendations to simplify and streamline its licensing processes. My colleague Jarrett Skorup has flagged LARA’s best recommendations, including offering more frequent exams in more locations and reducing the training hours for particular licenses.

One of LARA’s “Cutting Red Tape” recommendations made me chuckle. LARA recommends creating an “honorary retiree license” to allow people to retain their license when their careers are over. When you’re a hammer, everything looks like a nail — and when you’re a licensing agency, everything needs a license. Now even retirement might require government paperwork!

For the broadest reform, Whitmer and the Legislature should focus on three major tasks: first, annually review the licenses Michigan requires; second, repeal unnecessary and duplicative licenses; and third, adopt universal reciprocity for occupational licenses — if someone is doing the work legally in another state, we should encourage them to do it here.

Given the governor’s call to action and the bipartisan interest in the issue, it’s a great opportunity for reform.

Permission to reprint this blog post in whole or in part is hereby granted, provided that the author (or authors) and the Mackinac Center for Public Policy are properly cited.