OECD report urges regulatory reform to boost growth and mobility
An OECD report argues that reforms to professional licensing systems could boost economic growth, increase labor mobility, and improve workforce participation by reducing unnecessary barriers to entry while preserving public protection. The analysis finds that overly restrictive licensing requirements can limit competition, raise costs for consumers, and make it more difficult for workers to move between regions or occupations, particularly when credential recognition processes are fragmented or inconsistent. The OECD highlights reforms such as streamlining licensing requirements, improving recognition of qualifications across jurisdictions, expanding mutual recognition agreements, and regularly reviewing regulatory requirements to ensure they remain proportionate to actual risks. At the same time, the report emphasizes that licensing continues to play an important role in protecting health, safety, and consumer interests, and recommends evidence-based approaches that balance public protection with workforce flexibility. For regulatory organizations, the findings reinforce ongoing international discussions about modernizing licensing frameworks to support economic opportunity, address labor shortages, and facilitate mobility in increasingly interconnected labor markets.