Everyone should have the right to earn an honest living. So why are there so many barriers to entry for those looking to join the workforce?

Good evening,  Everyone should have the right to earn an honest living. So why are there so many barriers to entry for those looking to join the workforce? Like employers in most other states, North Carolina businesses are facing significant labor market challenges. As of December 2024, North Carolina’s labor force participation rate (59.9%) is 2.6% lower than the national average (62.5%). The U.S. Chamber of Commerce currently ranks North Carolina’s worker shortage as “more severe.”  A lack of workers prevents businesses from expanding, limiting both production and innovation, choice for consumers, and new, better opportunities for existing workers.  So, why is North Carolina facing these labor market challenges? Although many factors contribute to existing challenges in North Carolina’s labor market, excessive regulation is a huge contributing factor, the most stringent and pervasive of which is occupational licensing.    While occupational licensing isn’t as well known as other labor issues, like unionization or the minimum wage, it is equally costly and harmful — and directly affects many workers.  Thankfully, other states already provide a roadmap for licensing reform. A roadmap that would free the North Carolina economy and make it easier for residents to earn a living.  We recently published a report, by scholars from the Knee Regulatory Research Center at West Virginia University, on occupational licensing reform for North Carolina. We highlight specific cases where North Carolina is particularly stringent and offer several recommendations to eliminate unnecessary barriers to work.  It's past time to lower barriers to entry for NC workers and unleash the Tar Heel State’s economy.  You can read more about regulations affecting NC workers here, here, and here.  Esse quam videri, Donald Bryson   Watch our latest Video! More from Locke 1) 🏡🏡🏡 Will North Carolina finally undertake eminent domain reform? “Eminent domain” refers to the government’s power to take private property without the owner’s consent In the landmark 2005 U.S. Supreme Court case Kelo v. City of New London, the Court ruled that federal courts would grant broad latitude to state and local governments to determine the justifiable use of eminent domain Since then, most states, especially those in the Southeast, have implemented protections against eminent domain abuse, but North Carolina has not Florida and Virginia are considered to have the most effective protections in the country A new bill, HB 310, introduced in the General Assembly, aims to address this gap in protection It proposes amending the state constitution to restrict eminent domain to “public use” (not “public use or benefit”) and ensure jury determination of “just compensation” However, the bill's “public use” definition is still vague, risking broad interpretation, as seen in Kelo Additionally, the bill does not include an explicit prohibition of eminent domain for the express purpose of economic development An even better bill would include some recommendations from Locke’s “Policy Solutions” guide bill, such as: Clearly defining “public use” within the state constitution to explicitly exclude the taking of private property for economic development purposes Limiting private property transfers to essential public services or imminent safety threats A stipulation that courts independently assess “public use” without deferring to any other authority  And a definition of “just compensation” that covers all losses and costs The members of the N.C. House who have been working so long and so diligently to protect us from eminent domain abuse deserve our gratitude. Let us hope they finally succeed in putting effective protections in place. Read the full article here.  2) 🎓🎓🎓 New Opportunity Scholarship numbers show sustained demand Over 40,000 new Opportunity Scholarship applications were submitted during the priority application period this year, according to new data In 2023, the NC General Assembly expanded eligibility to all NC families, regardless of income In 2024, the OSP received increased funding to address a backlog of approximately 55,000 waitlisted applications from the previous year's surge The data demonstrates not only that there is sustained demand for the program, but also that lower-income families still are prioritized For the OSP, families are classified in a tier system based on income level, ranging from Tier 1 (lowest-income) to Tier 4 (highest-income) Tier 1 families were awarded the highest number of scholarships at 29.7% Tier 2 families - 27.8% of scholarships Tier 3 families - 28.1% of scholarships And Tier 4 families - just 14.3% of scholarships While the priority application winder may be closed currently, the portal is still accepting applications if there is leftover funding available You can read more here. 3) 🏛️🏛️🏛️ A bill to REIN in red tape in NC House Bill 402, also known as the REINS Act, was recently filed in the North Carolina House If passed, the REINS Act would require that any new proposed agency rules with “significant economic impact” be approved by the General Assembly “Significant economic impact” is defined as at least $1 million in costs over 12 months, affecting all impacted persons This would prevent unelected bureaucrats from wielding unchecked regulatory power without legislative oversight Locke has long advocated for a North Carolina REINS Act, and this would be big step towards curbing bloated state agencies, excessive red tape, and power-tripping bureaucrats You can learn more here.   Donate Want to change how you receive these emails? 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