MIDLAND, Mich. — A new report from the Mackinac Center for Public Policy highlights a reform that would boost economic growth and workforce expansion in Michigan. The policy brief “Work Without Walls: The Benefits of Universal Licensing Reciprocity for Michigan” shows how Michigan’s burdensome licensing laws discourage workers from moving to the state. The solution is universal licensing reciprocity.

Everyone agrees that the state needs to grow its population. Recognizing the occupational licenses earned in other states would help Michigan attract skilled workers and entrepreneurs. Universal licensing reciprocity ensures that professionals with valid licenses from other states can start working in Michigan without having to jump through hoops or endure redundant testing and training.

“Michigan should be a place where there are no barriers for people who want to move here and contribute to the economy,” said Jarrett Skorup, vice president for marketing and communications at the Mackinac Center and author of the report. “More than half the states in the country, including neighboring Indiana and Ohio, have already adopted near-universal licensing reciprocity, and Michigan should follow suit.”

The report highlights key findings:

• Twenty-six states have passed laws almost universally recognizing out-of-state occupational licenses.

• Michigan spends over $500 million annually administering its licensing regulations. This reform would save time and money.

• The state licenses around 180 occupations, some of which recognize out-of-state licenses but often in an inconsistent way and with arbitrary requirements.

• Reciprocity laws increase interstate migration, helping states attract skilled professionals.

Michigan currently allows some forms of reciprocity, but they are limited. The state provides automatic recognition for military veterans and their families, as well as most lawyers, doctors and a few other professions. However, other licensed professionals — such as nurses, dentists, social workers and more — face more extensive hurdles to obtain Michigan credentials.

Gov. Whitmer's Growing Michigan Together Council recently recommended reviewing and streamlining Michigan’s occupational licensing laws. The council also suggested making it easier for licensed or certified workers to work in Michigan in order to grow the state’s population.

“Michigan’s licensing system is slowing down the economy and keeping people out of jobs,” Skorup said. “Adopting universal recognition would make it simple for people to come here and work without unnecessary paperwork or training, and show we are open for business.”

The report cites real-world cases of professionals who have struggled with Michigan’s licensing bureaucracy. One psychotherapist with two decades of experience waited over a year for her license to be approved after moving back to Michigan. Such delays reduce access to essential services and discourage skilled workers from relocating to the state.

By passing universal licensing reciprocity, Michigan would eliminate unnecessary red tape, lower consumer costs and address labor shortages in critical industries. Policymakers from both sides of the aisle have supported similar reforms in other states, making this a bipartisan solution for Michigan’s economic future.

Read the full report here: https://www.mackinac.org/archives/2025/s2025-01.pdf