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An Underused Workforce Solution at the Border

A visa program created under NAFTA allows Canadian and Mexican professionals to work in the U.S. with minimal red tape. But to take advantage of it, states need to look at the Catch-22 situation created by their occupational licensing requirements.

U.S.-Canada border
Rick Beauregard/Adobe Stock
Drive down Main Street in any town in my state of North Dakota, and you’ll see the same sign in shop windows: “Help Wanted.” North Dakota is brimming with opportunity, but many businesses can’t find the employees they need. Right now, according to U.S. Chamber of Commerce data, we have roughly 10 job openings for every three unemployed workers. If we don’t tackle this labor crisis soon, the economic momentum we’ve built could stall.

This labor shortage is not just an inconvenience — it’s a direct threat to our growth. When employers can’t find workers, they are forced to increase wages to unsustainable levels, delay expansion plans or even consider relocating their operations. Meanwhile, North Dakota has invested millions into workforce development, yet we still have significant gaps in health care, construction, manufacturing and other key sectors.

One underused solution lies right across our border: the TN visa program. Created under NAFTA and upheld by the United States-Mexico-Canada Agreement, the TN visa allows Canadian and Mexican professionals to work in the U.S. with minimal red tape. Unlike the H-1B visa, which requires a competitive lottery process and employer sponsorship that can cost up to $18,000, the TN visa is uncapped, low-cost and quickly renewable. Canadian applicants, for instance, can present their passports and job-offer letters at a U.S. customs checkpoint and begin working immediately, making it an ideal tool for a border state like ours with pressing workforce needs.

Why isn’t North Dakota taking greater advantage of this? One major obstacle is occupational licensing. TN visas are limited to professional roles such as accountants, engineers and architects, often requiring state-specific credentials. These licenses usually have residency requirements, creating a Catch-22: Foreign professionals can’t get a license without living in the state, but they can’t get a job and move to the state without a license. This bottleneck discourages job seekers and employers from tapping into a readily available talent pool across the border.

Other states are already implementing solutions to improve labor mobility. Many have adopted reciprocity agreements and universal recognition policies, which streamline licensing for out-of-state professionals. For example, Arizona pioneered universal recognition and has issued more than 8,000 licenses since 2019. South Dakota faces a health care situation similar to ours, but unlike us it has seen a remarkable increase in its registered nurse growth rate. Between 2020 and 2022, the state added 1,150 new registered nurses, which doubled the 2,128 new RNs registered during the previous eight years. This surge may be partially linked to simplifying the process for professionally licensed individuals to relocate to South Dakota, but more research is needed.

We shouldn’t be left behind. We can start by prioritizing TN visa holders for roles that do not typically require licensing, such as IT specialists, researchers and management consultants. That alone should ease some pressure on local hiring markets. At the same time, we should streamline licensing for occupations that do require a credential.

Accepting out-of-state licenses and exploring similar agreements with Canada and Mexico would allow qualified professionals to hit the ground running while they wrap up any North Dakota-specific steps. Finally, we should advocate for expanding the TN-eligible occupation list, particularly in technical fields like construction and manufacturing, which face severe worker shortages.

Some may worry that bringing in more foreign professionals could lower wages or displace local workers. However, with more job openings than unemployed residents, states like North Dakota stand to benefit from an influx of skilled talent. When employers can quickly fill positions, they can maintain or expand their operations rather than cut back, which preserves and even creates new opportunities for everyone in the state.

The benefits of these reforms go beyond businesses. A stronger workforce leads to a stronger economy, increased tax revenue and more opportunities for residents. By embracing TN visas and eliminating unnecessary bureaucratic obstacles, North Dakota can ensure its economic future while keeping its competitive edge.

The labor crisis will not solve itself. Policymakers and business leaders must recognize the opportunity at our doorstep and take bold steps to attract skilled workers. If we want to grow, we must open the door to those ready and willing to contribute.

Jiawei “Ethan” Liu is a research specialist at the Challey Institute at North Dakota State University and the author of the policy brief “Utilizing TN Status to Attract Workers to North Dakota.” This commentary originally appeared inthe North Dakota Monitor, part of the States Newsroom network. Read the original here.
 


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