I can testify to that. I worked for a midsized engineering firm where the president lobbied hard for an city ordinance to require certain surveys be done or supervised by licensed professional engineers. It was complete overkill for a task that could be competently performed by an unlicensed engineer with two or three years experience in the field. The ordinance passed and the fees charged by "qualified" companies soaked the businesses required to have the surveys conducted.
About the first half of my engineering career was spent in private industry without being professionally registered. Many co-workers were just darned good craftsmen. I served with some distinct recognition. Later I went to work for a government agency. I found the employment ladder, controlled by union engineers, was very dependent on being a licensed engineer. I took the exam and passed the first time. In addition I also passed for a second engineering license. I went on to head an agency. In all my time as a licensed engineer I did not feel/believe my smarts or quality of work was increased by having the licenses. Of course I must admit my personal feelings are not what the bureaucracies or perhaps the public would admit/accept.