Cannabis has been viewed for a long time as an economic driver. The economic impact was one of the pillars of the legalization movement. As an emerging market, job creation is a huge selling point, and as more states join the ranks of some form of legalization, finding enough workers is becoming a concern for growers and retailers.
Each year, Leafly releases an annual jobs report. The information looks at the country as a whole, breaks down each state’s growth, and highlights trends moving forward. It’s an essential tool for anyone interested in the cannabis industry and is strong evidence of the need for federal legalization.
Jobs grew by greater than 25% for the fifth year in a row. The report showed over 425,000 cannabis industry jobs throughout the country. The growth is expected since each year; more states legalize either medical or recreational use.
Just to put it into perspective, more people are working in cannabis than are employed as firefighters. And by the time the following report is published, cannabis workers will outnumber plumbers. For the first time, industry job growth surpassed six figures. In 2021 just over 107,000 jobs were added.
As cool as these numbers are, the industry is still relatively small. The Fast Food industry employs just under 4.8 million (https://www.ibisworld.com/united-states/industry-trends/biggest-industries-by-employment/), but considering the fast food industry has about a sixty-year head start, the growth is pretty solid.
California and Colorado are still on top. They have the most mature recreational markets and lead in sales and employment. What is astonishing is how strong Michigan has grown in such a short time. Michigan now ranks third with just over 31,000 jobs. Michigan may soon be only behind California as the popularity doesn’t show signs of slowing down.
Michigan hasn’t been perfect, and many issues still need to be addressed, but the struggles for newly legal states like New Jersey show just how good we have it. New Jersey is set up for medical but can’t serve the patients well. They employ around half the amount of people needed to help those in need.
Leafly partnered with Whitney Economics to gather the data. They looked at the industry in its entirety, including the illicit markets. Here is what they found:
“Whitney Economics calculates that the 2021 total cannabis sales figure—just under $25 billion—represents only about 25% of the total potential US cannabis market. In other words, 75% of the nation’s true cannabis demand is still being met by illicit growers and sellers. Those numbers include illicit sales in all legal, medical, and prohibition states. By 2025, we forecast America’s total annual legal cannabis revenue to be closer to $45 billion. That’s still less than half the total potential national market.”
They conclude that the US will continue to see similar growth through 2025. At least four more states (New Mexico, New Jersey, New York, and Connecticut) will open recreational use in the next 18 months. The growth will likely continue past 2025, but more states must follow recreational or federal legislation to confirm the increase.
Much of the growth in 2021 was related to Covid-19. The expected results for 2022 will be less robust. Inflation and the state of the economy are affecting every industry. Cannabis isn’t immune to less disposable income, so there will be growth, but don’t anticipate the same as we just experienced.
Pat yourself on the back. You guys are killing it! In 2021 Michigan had 31,152 full-time cannabis jobs. That was an increase of 13,074. Cannabis sales were &1.79 billion, which was an increase of 81%. Let me say that again, 81%!!!
Local municipalities are lifting the illicit market. Of the 1700 cities and townships, only 160 allow licensed adult-use sales.Whitney Economics estimates Michigan’s demand to be around $3.2 billion, which means the illicit market is filling half that demand.
Michigan is becoming a leader in the industry. Cannabis education is growing. Lake Superior State continues to expand its course offerings to fulfill the employment demand from seed to sale. It is an excellent time to be in Michigan; other states would be wise to copy the model.
Cannabis has been viewed for a long time as an economic driver. The economic impact was one of the pillars of the legalization movement. As an emerging market, job creation is a huge selling point, and as more states join the ranks of some form of legalization, finding enough workers is becoming a concern for … Cannabis is an Employment Driver
The following is a summary of an article by Bart Schaneman published by MJ Biz. A rivalry has emerged between the two most significant trade associations in the cannabis industry. On one side, the legacy group, the National Cannabis Industry Association (NCIA), counts more than 1,000 members after losing roughly 200 since the … Rivals seek to gain control of Cannabis Organizations
Below is an Op-Ed by Kaitlin Domangue. She has a Workweek site called the Green Paper Newsletter. I found this one to be important. Mainly because there is a perception that the Republicans are the biggest hurdle to federal legalization, the Biden-Harris ticket campaigned on cannabis legislation and criminal justice reform. Once cannabis is legalized … Op-Ed: Biden Admin “Suggests” White House Applicants not Invest in Cannabis
