A new Pioneer Institute report warns that Massachusetts is losing residents and seeing business formation slow because state regulations are too complex and burdensome.

The report calls for sweeping workforce and licensing reforms to expand labor force participation, integrate legal immigrants, cut red tape, and restore the Commonwealth’s economic competitiveness.

The Boston-based think tank argues that outdated regulatory systems are preventing willing workers and entrepreneurs from participating in the economy.

“Massachusetts has extraordinary talent and entrepreneurial energy, but too many willing workers and aspiring business owners are stuck navigating unnecessary red tape,” Jim Stergios, executive director of Pioneer Institute, said in a press release. “If we want to compete for jobs and investment, we need to modernize our systems so they work for entrepreneurs, immigrants, and small employers—not against them.”

What the Report Says About Massachusetts Regulations

The report says Massachusetts maintains one of the most complex regulatory systems in the country.

In Boston, starting a restaurant requires navigating 92 steps across multiple agencies, completing numerous in-person tasks, and paying a dozen separate fees, according to the report. Pioneer argues these layers of approval discourage entrepreneurship.

The organization recommends creating a statewide “One-Stop Business Portal” that would integrate registration, licensing, and permitting across state and municipal government. The portal would include multilingual access and connect users to legal and workforce resources.

Occupational Licensing Reform

A major focus of the report is occupational licensing.

Nearly one-third of U.S. workers require a government license. In Massachusetts, the average license takes 511 days to obtain. The state does not recognize out-of-state licenses, forcing professionals who move here to repeat approval processes.

“Universal recognition of out-of-state licenses is a simple, bipartisan reform that increases labor mobility and helps fill workforce shortages more quickly,” Aidan Enright, Pioneer’s Economic Research Associate and Fellow on Immigrant Entrepreneurship, said in the release. “When qualified professionals move here, they should be able to get to work.”

Twenty states, including Vermont and New Hampshire, have adopted universal license policies. Pioneer urges Massachusetts to follow.

The report also recommends replacing low-risk occupational licenses with voluntary certification and ending license suspensions tied to student loan default.

Workforce and Immigration Integration

The report highlights healthcare workforce shortages in Massachusetts.

It recommends expanding supervised-practice models for internationally trained professionals in nursing, behavioral health, dental hygiene, and elder care. It also calls for expanding the Global Entrepreneur in Residence program, which allows public universities to sponsor cap-exempt H-1B visas for immigrant founders.

Pioneer further recommends aligning English language instruction with workforce development programs. Immigrants make up roughly 20% of the Massachusetts workforce, yet many face underemployment due to limited English proficiency.

Why It Matters for Massachusetts

Massachusetts has experienced net outmigration in recent years while neighboring states compete for workers and businesses. Pioneer says regulatory reform is necessary to restore economic dynamism and improve the state’s competitive position.

“Economic freedom means ensuring that every qualified worker can contribute and every entrepreneur can compete,” Stergios said. “By removing unnecessary barriers to work and modernizing outdated systems, Massachusetts can expand opportunity, grow its tax base, and remain a national leader in innovation.”

The report is part of Pioneer’s Agenda for Leadership series and accompanies its new book Agenda for Leadership: Choosing to Compete.

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FAQ

What is Pioneer Institute proposing in Massachusetts?

The group proposes licensing reform, a statewide business portal, unemployment insurance reform, and workforce integration policies aimed at reducing regulatory burdens and expanding labor participation.

Why does Pioneer say Massachusetts is losing competitiveness?

The report argues that complex licensing rules, fragmented regulations, and slow approval processes discourage workers and entrepreneurs from operating in the state.

What is universal license recognition?

It allows professionals licensed in other states to work in Massachusetts without repeating lengthy approval processes.

How would this affect small businesses?

A streamlined system could reduce startup delays, lower compliance costs, and make it easier to open and operate businesses in Boston and across Massachusetts.