Cannabis Industry’s Labor Force Grows to Over 440,000, New Research Shows
The latest research from Vangst and Whitney Economics reveals that the legal marijuana industry in the United States has added nearly 23,000 jobs in the past year, bringing the total number of full-time workers to over 440,000. This marks a 5.4% increase from the previous year and could be a sign of stabilization in the industry after a tumultuous period.
Annual Cannabis Sales Reach $28.8 Billion, Job Market Varies Across States
The report also highlights the growth of the cannabis market, with annual sales reaching $28.8 billion in 2023, a 10.3% increase from the previous year. However, this growth is not evenly spread across all states, as the industry is heavily influenced by regional factors.
Young markets in recently legalized states, such as Michigan, Missouri, and Illinois, continue to expand and create job opportunities. On the other hand, mature markets in the West have seen a decline in sales and job losses due to price compression, oversupply, and competition from hemp-derived products and unlicensed sales.
Challenges Facing the Cannabis Industry
Despite the industry’s resilience in the face of challenges, the current economic climate has hit the cannabis industry hard. High interest rates and expensive capital have led to companies delaying expansion plans, and cash flow concerns have caused delays in invoice payments.
As the Federal Reserve hints at lowering interest rates in the future, many companies are hesitant to take on loans at current high rates. This, coupled with cash flow issues, has created a challenging environment for the cannabis industry.
While the industry has weathered storms in the past, the current challenges are proving to be more difficult to navigate. With the possibility of lower interest rates on the horizon, it remains to be seen how the industry will adapt and continue to grow in the coming years.
