Occupational licensing makes it illegal for aspiring workers to begin working before obtaining a credential issued by the government. To obtain the credential, workers must often obtain minimum levels of education and training, pass exams, pay fees, and meet additional entry requirements.
By limiting the supply of labour, licensure can raise the wages of those who are licensed. But this comes at a social cost by reducing employment, suppressing the wages of non-licensed workers, raising prices, and increasing income inequality. Moreover, there is little evidence that licensure increases either the quality or safety of services.
Approximately 11 percent of Canadian workers are licensed, and requirements vary significantly by region.
This bulletin introduces the first comprehensive index of occupational licensing across Canada’s provinces.
It finds that Alberta, Quebec, and Ontario have the highest licensing burdens, whereas Prince Edward Island and Newfoundland & Labrador license the fewest professions.
As demonstrated by the case of Alberta, occupational licensure does not strongly correlate with other measures of economic freedom, such as lower taxes and spending.
By comparing Canadian and US regulatory frameworks, our research highlights how licensing requirements are often arbitrary and fail to serve the best interests of consumers.
<p><strong><em>Provincial Occupational Licensing Index, 2026</em></strong> introduces the first comprehensive index of occupational licensing across Canada’s provinces, finding that Alberta, Quebec, and Ontario license the most professions, whereas Prince Edward Island and Newfoundland and Labrador license the fewest professions.</p>
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