Alberta requires licences for more jobs than any other province, Fraser Institute index finds
A new index shows Alberta requires licences for 73 job categories, more than any other province, raising questions about the need for such rules.
Alberta requires a government licence for more jobs than any other province, including appliance repairmen, barbers and motorcycle mechanics, according to a new index published by the Fraser Institute.
The institute’s researchers analyzed licensing statutes for 158 job categories across all 10 provinces and found Alberta requires a licence for 73 of them.
Quebec, with 67 licensed jobs, and Ontario, with 62, were close behind.
READ MORE: Alberta suspends fuel tax for three months as rebate program falters
READ MORE: Canadians say grocery benefit payments are too small to ease cost pressures
At the other end of the spectrum, Prince Edward Island requires a licence for only 41 jobs, slightly fewer than Newfoundland and Labrador (43) and Manitoba (48).
“The case for occupational licensing is weak. And the costs, for workers and consumers, can be steep,” said Matthew D. Mitchell, an economist at the Fraser Institute, in an essay for the Prosperity’s Path series.
To become a barber in Alberta, for example, a person must finish 1,450 hours in an apprenticeship, spend 10 weeks in a classroom at a cost of about $2,000, complete an exam and pay about $300 in fees.
If an apprentice cannot find a barber to train with, they must pay about $10,000 to obtain the required hours at a beauty school.
Barbers are licensed in four provinces, Alberta, Manitoba, Ontario and Nova Scotia.
Mitchell argues licensing purportedly protects the public from incompetent providers, but evidence refutes that claim.
According to an analysis of 45 studies assembled by Mitchell, only four studies found that licensing improves service quality, while 20 found it leads to lower quality.
He said this is likely because licensure reduces employment in licensed fields and limits competition, which tends to promote quality.
The index identified 26 jobs that are licensed in only one province, including tile setters in Quebec, social workers in Ontario and estheticians in Manitoba.
Meanwhile, air-conditioner mechanics are licensed in six provinces.
“These patterns are consistent with research that finds licensing has more to do with the political organization of a profession’s insiders than any threat to public safety posed by unlicensed workers,” Mitchell wrote.
He said certain ethnic minorities, non-native speakers, those with less education and those who frequently move are more likely to be stymied by licensure.
Licensure can also limit opportunities for self-employment and increase income inequality, he added.
The Fraser Institute recommends provincial governments eliminate unnecessary licensure requirements.
Mitchell acknowledged licensing regimes are notoriously difficult to eliminate because incumbent businesses that benefit from the barriers are often well-organized and able to apply more pressure on politicians.
Some provinces have enacted reforms, such as the New West Partnership between B.C., Alberta, Saskatchewan and Manitoba, which allows licensed professionals in one of those provinces to move to another and start work without obtaining a local licence.
Mitchell called these welcome steps but said they are workarounds, not fixes.
A patchwork of side agreements still requires each pair of provinces to negotiate mutual recognition one deal at a time, he noted.
With files from The Globe and Mail