OPINION:
Jumping ship has become the only viable financial life raft for workers. In 2026, worker mobility is not just a career choice; it is the only real inflation hedge left.
According to the latest labor market report, average hourly earnings have increased by 3% over the past 12 months. This is not keeping pace with the annual inflation rate of 3.7%.
One silver lining is that workers who change jobs fare significantly better. The pay increase associated with a job switch has reached its highest level in three years, according to a recent Bank of America report, which notes that job switchers experienced a 15% pay increase — far better than the 3.5% average bump workers have received.
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As advances in artificial intelligence continue to change the work environment, adaptability and flexibility will become more important. Workers in today’s economy need the flexibility to change jobs, but needless red tape often gets in the way.
Social workers, for example, are in high demand nationwide. Yet when a social worker wants to move to a new state, he or she encounters needless barriers.
The same is true for many high-demand fields, such as the skilled trades, dental hygiene and radiation therapy. All these positions require occupational licensing, which often, inexplicably, means that someone’s education and training lose all relevance after moving to another state.
Economic research confirms that occupational licensing reduces worker mobility, perhaps by as much as 7%.
This is where universal recognition of occupational licensing can make a real difference.
With universal recognition, if licensed workers have credentials in good standing from their previous state, the new state will accept the license. It is as simple as that.
Twenty-eight states have adopted some form of this policy, according to the Archbridge Institute’s latest State Occupational Licensing Index report.
With very good reason, military families have had this privilege under federal law since 2023. Still, many workers moving into states such as Texas, California or New York face needless delays or, worse yet, may even have to complete additional education and training.
This must change. Universal recognition offers the best path forward.
States have experimented with the compact approach for some occupations, but compacts are slow, one occupation at a time, and add more bureaucracy. Published evidence shows the Nurse Licensure Compact may not improve mobility at all.
States that want to fully empower workers to move need universal recognition, not more compacts. States that have adopted universal recognition receive an influx of new tax filers, better access to doctors for their residents, and a more than 48% increase in inflows of the most affected workers.
Will public safety be compromised by this reform? Absolutely not, because these are fully licensed and credentialed workers with licenses in good standing who are taking advantage of the reform.
If workers want to beat inflation, they need the flexibility to change jobs without facing unnecessary bureaucratic delays and hurdles.
More states adopting universal recognition will give workers the flexibility they need to navigate rising prices and an ever-changing workplace.
• Edward Timmons is the vice president of policy at the Archbridge Institute.
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