U.S. Cannabis Industry Surpasses 440,000 Full-Time Workers, Shows Resilience Amid Challenges

The cannabis industry in the United States continues to demonstrate resilience and growth, with newly published research revealing that it now boasts over 440,000 full-time workers. Compiled by Vangst and Whitney Economics, the data highlights a significant increase of nearly 23,000 jobs added in the past year alone, marking a 5.4% year-over-year growth.

The report suggests that this uptick may indicate a stabilization of the business climate nationally after facing challenges over the past couple of years. Despite headwinds, the industry saw annual cannabis sales surge to $28.8 billion in 2023, reflecting a 10.3% rise compared to the previous year.

However, the growth trajectory was not uniform across the country. Regional disparities were evident, with emerging markets in states like Michigan, Missouri, and Illinois experiencing robust expansion, while mature markets in the West faced challenges such as price compression and oversupply.

The report underscores the impact of external factors on the industry, including high interest rates and expensive capital, which have led many cannabis companies to delay expansion plans. Cash flow concerns, particularly regarding delayed invoice payments, have further strained businesses, affecting their ability to meet tax obligations and hire additional staff.

Despite these challenges, there are optimistic signs for the future. The report identifies bright spots on the horizon, anticipating stabilization in mature markets and continued growth in emerging ones. Lower interest rates expected in the latter half of 2024 could provide a much-needed boost to companies seeking to expand operations and increase hiring.

Federal reform remains a wildcard in the industry’s trajectory. While significant legislative changes may not materialize before 2025, ongoing efforts, such as the Biden Administration’s push to reschedule cannabis, could have profound implications for the industry’s future.

Overall, the cannabis industry’s resilience and ability to adapt to evolving circumstances underscore its importance as a driver of economic growth and employment opportunities across the United States.