Policy Documents

The Employment Impact of Regulation

Keith Hall –
July 1, 2013
Honestly evaluating the impact of regulation on unemployment is not only in agencies’ best interests, it’s required by law. In 1993, Executive Order 12866 addressed the employment cost of regulation in the requirement that agencies develop an assessment of “any adverse effects on the efficient functioning of the economy, private markets (including productivity, employment, and competitiveness), health, safety, and the natural environment), together with, to the extent feasible, a quantification of those costs.” This requirement was clarified in 2011 when Executive Order 13563 stated, “Our regulatory system must promote public health, welfare, safety, and our environment while promoting economic growth, innovation, competitiveness, and job creation.” Most recently, in their Draft 2013 Report to Congress on the Benefits and Costs of Federal Regulations and Unfunded Mandates on State, Local, and Tribal Entities (April 2013), OMB states that “job creation is an important consideration in regulatory review.”