Cannabis job growth: Employment growth reaching all new highs

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  Quantumrun Foresight
• March 12, 2022

Insight summary

The cannabis industry is experiencing rapid growth, with legal cannabis becoming the fastest-growing industry in the US. The 2021 Leafly Cannabis Jobs Report highlights 321,000 full-time jobs and 77,300 part-time jobs added in the last year, along with soaring sales. With more states legalizing cannabis and the industry's adaptation to online sales, this trend is expected to continue, creating new opportunities and challenges in various sectors.

Marijuana job growth context

Cannabis is a rapidly growing industry that has been on a steady upward trend since 2017. The 2021 Leafly Cannabis Jobs Report shows that legal cannabis is the fastest growing industry in the US, with 321,000 full-time jobs across 37 states and 77,300 part-time jobs added in the last year. At the same time, cannabis product sales soared to $18.3 billion in 2020, a 71 percent increase from 2019.

The industry’s rapid growth is indicative of the US population’s enthusiastic support for cannabis legalization. Layoffs and furloughs were reported immediately during and after the COVID-19 pandemic, but the industry has recovered, and observers expect the industry to add more jobs through 2021-22. 

In December 2018, US lawmakers passed the Farm Bill, which permitted hemp to be grown in the US under federal law. Since then, more than half of US states have approved the use of medical marijuana, and 18 states have legalized the recreational use of marijuana. The legalization of cannabis has led to explosive growth in the cannabis industry, with thousands of people involved in farming and harvesting the plant and producing and selling cannabis products. During the pandemic, dispensaries and retail shops moved online, offering curbside pickup and delivery options, which created even more jobs.

The industry is expected to keep growing exponentially as more and more states legalize cannabis. Meanwhile, similar cannabis-focused job growth has been reported in countries like Canada and Mexico where cannabis has been fully legalized.

Disruptive impact 

The legalization of cannabis has created jobs that previously did not exist. The industry's shift online, for example, has spurred demand for software engineers, courier companies, and delivery drivers to facilitate curbside pickups and deliveries. This transition has not only expanded the industry but also fostered innovation and adaptation to new market dynamics.

Various ancillary companies have emerged to support the industry without direct involvement in cannabis growth and processing. Specialized business consultants, accountants, lawyers, and companies focusing on hydroponics, grow lighting, extraction, and specialty logistics have found new opportunities in states that have legalized marijuana. These secondary companies have enriched the industry's ecosystem, contributing to its complexity and vibrancy.

The broader societal shift in attitudes towards cannabis is also noteworthy. Legalization has influenced legal frameworks, business practices, and cultural norms. This change offers insights into how emerging markets can adapt, innovate, and thrive, with potential lessons for other industries and governments seeking to navigate similar transitions.

Implications of cannabis job growth

Wider implications of cannabis job growth may include:

• A boost to state economies through increased employment and tax revenues, enhancing public services.
• The emergence of specialized roles in technology, logistics, and legal services, influencing labor market trends.
• Collaboration between states and countries on legal frameworks and standards, shaping global policies.
• Encouragement of innovation and entrepreneurship, fostering new business models specific to the cannabis industry.
• Ethical considerations in responsible growth, requiring industry-specific regulations and oversight.
• Challenges in managing rapid growth, with implications for quality control and consumer protection.
• Influence on education and training, leading to the creation of specialized programs tailored to industry needs.
• Cross-border collaboration and knowledge sharing, fostering global expansion and alignment.
• Potential competition with traditional agricultural industries, affecting labor and resource allocation.

Questions to consider

• What are your thoughts regarding the legalization of cannabis?
• Do you think the possible benefits of medical marijuana outweigh the dangers posed by significant marijuana usage?