This paper examines the evolution of regulations governing professions that require specific qualifications. It also analyses the labour market dynamics of these professions and the economic performance of firms in the professional services sector, which employ a significant share of professionals required to register with professional bodies. Lastly, it evaluates the impact of reforms aimed at removing constraints on economic activity in professional services.
Employment in regulated professions has reached an all-time high. The reforms implemented over the past decade have increased competition in professional services. The removal of price-setting constraints has reduced the 'income premium', although it remains significant. Easing restrictions on the provision of professional services through corporate structures has led to a rise in the number of medium-sized and large firms, although the average firm size remains small, partly for tax reasons.
