This is used by several states to assign driver license numbers. [1]
[1] https://www.community-insurance.com/learn-how-to-read-your-d...
[1] https://www.community-insurance.com/learn-how-to-read-your-d...
It does make it harder to fake an id, perhaps that was the motivation.
Edit: Some more interesting info for the states that implement this. Also, TIL Illinois drivers can appear to have the exact same DL number. http://www.highprogrammer.com/alan/numbers/dl_us_shared.html