The need for more qualified workers is a bipartisan issue in Iowa. Regardless of a rural or urban setting, workforce is still a concern for many employers and communities. State policymakers have been responsive to this concern, and they have actively been easing regulatory burdens in recent years. This includes reducing barriers to employment and ensuring that unnecessary roadblocks do not deter individuals from securing meaningful work.

In 2020, Iowa passed landmark occupational licensing reform, which universally recognizes out-of-state licenses. This reform is crucial, because now those who relocate to Iowa can immediately begin to work and not go through the “bureaucratic” process of obtaining a new license. Between 2023 and 2025, Iowa expedited over 4,570 licenses.

State government itself, particularly the agencies and departments within the executive branch, has undergone significant reform, streamlining, and consolidation. The number of cabinet-level agencies was reduced from 37 to 16, with licensing functions consolidated into a single department to improve efficiency and accountability.

During the 2025 legislative session, lawmakers approved a reform to modernize Iowa’s licensing system for barbers and cosmetologists. The bipartisan measure was signed into law, creating new flexibility for workers entering the profession, allowing “barbers and cosmetologists to work without an occupational license, as long as they operate in a state-approved barbershop or salon under the supervision of a licensed practitioner.”

Although Iowa has made important progress in reducing barriers to employment, more reform is needed. The Archbridge Institute’s State Occupational Licensing Index 2025 ranks Iowa 19th in the nation. Regionally, Iowa has some of the highest barriers with 165.

How can Iowa continue to make progress on removing needless barriers to work?

First, Iowa could strengthen its universal recognition program by requiring licensing boards to better track all individuals who take advantage of the program. As we indicated, Iowa has had success in attracting new workers, but better benchmarking would help maximize effectiveness and also encourage continued compliance with the law. This way, contractors based in Omaha, Sioux Falls, or other border communities could more easily provide their services to Iowa residents. This would give Iowa consumers more choice and give Iowa employers more options for licensed and qualified workers.

Second, legislators should consider additional independent review of Iowa’s occupational licensing restrictions. Bordering Nebraska passed a similar reform eight years ago. Every year, the legislature reviews 20% of the state’s occupational licensing restrictions. This review process has improved licensing regulations in the state- Nebraska ranks 35th nationally and licensed 10 fewer occupations than Iowa.

Finally, legislators in Iowa should prioritize the right for workers to earn a living in the state. Whenever new licensing is considered or existing licensing laws are reviewed, legislators should default to the least burdensome regulation that protects consumers but does not create unnecessary barriers to entering the labor market. Regulation and licensing are not synonymous. Instead, licensing is the most burdensome form of regulation – making it a crime to begin working before obtaining a permission slip from Des Moines.

Iowa already defaults to the least burdensome regulation for professions in the restaurant and auto repair industries. Chefs and wait staff, for instance, are not licensed. Instead, restaurants are subject to random inspection and are also disciplined by the market if they provide poor service or low-quality food. Auto mechanics can obtain voluntary private certification and are subject to market discipline. Both markets work very well, and licensing is not needed to protect consumers.

Iowa’s leaders should be applauded for making important strides on improving labor market access in the state. Lawmakers should remain aggressive, however, as much more work remains to improve Iowa’s competitiveness and best position the state for prosperity.

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John Hendrickson is policy director for Tax Education Foundation of Iowa, a public policy think tank. Edward J. Timmons, Ph.D., is vice president of policy at the Archbridge Institute.