Washington, D.C. – The Economic Innovation Group (EIG) welcomes a new Treasury Department report on the state of competition in the U.S. labor market, which highlights the harmful effects of non-competes agreements, no-poach agreements, occupational licensing requirements, and other barriers to competition. The Treasury report finds that lack of competition in the labor market costs workers, on average, an estimated 15 to 25 percent of what they might otherwise earn.
“Strong labor market competition is good for American workers and an essential ingredient of a dynamic economy,” said EIG President and CEO John Lettieri. “Unfortunately, barriers to competition have become a pervasive feature of the U.S. labor market rather than a rare exception. That is why Congress should pass the bipartisan Workforce Mobility Act, which would immediately boost competition for workers and create a better environment for wages, entrepreneurship, and innovation.”
The bipartisan, bicameral Workforce Mobility Act–introduced by Senators Chris Murphy (D-CT) and Todd Young (R-IN), and Representatives Scott Peters (D-CA) and Mike Gallagher (R-WI)–would limit the use of non-compete agreements nationwide, require employers to notify employees of the limits of their application, and delegate appropriate enforcement and reporting responsibilities to the Federal Trade Commission and the U.S. Department of Labor. EIG has previously published analysis summarizing the numerous harmful effects of non-competes on worker wages, mobility, entrepreneurship, and innovation.
About the Economic Innovation Group (EIG)
The Economic Innovation Group (EIG) is a bipartisan public policy organization dedicated to forging a more dynamic and inclusive American economy. Headquartered in Washington, DC, EIG produces nationally-recognized research and works with policymakers to develop ideas that empower workers, entrepreneurs, and communities. For more information, visit eig.org.