Cannabis Industry Sees First-Ever Decline in Jobs and Sales Since Legalization
A new report has revealed that the legal cannabis industry has experienced its first-ever decline in both employment and revenue since the introduction of adult-use markets. According to the report, employment in the industry fell by nearly 3% to 412,500 workers, while total legal sales dropped 3.3% to $29.1 billion.
The decline is attributed to price compression caused by an oversupply in cultivation markets, leading to lower prices despite stable sales volumes. This marks the first time that cannabis jobs and revenue have both declined simultaneously.
Despite the decline, the job market appears stable, with the industry continuing to employ over 400,000 people since 2022. However, the report notes that this decline is a mature signal, indicating a shift in the industry’s growth pattern.
The report also highlights the impact of licensing on employment, with states that have relatively unlimited licenses driving the most employment. However, these states also have the most downside risks due to harvest oversaturation and price declines.
In addition, the report notes that more than a dozen states experienced license declines in 2025 due to business closures, mergers, consolidations, or regulatory restrictions. Total cannabis licenses fell by over 1,200 nationwide, with retail licenses being the only major category to increase.
Despite the decline, the report expects a shift in labor demand, with future workforce growth expected to move away from cultivation and toward manufacturing and retail. The report also forecasts a modest amount of growth in U.S. retail sales, with sales projected to reach $30.5 billion in 2026.
The report comes at a crucial moment for the cannabis industry, with President Donald Trump’s executive order directing federal officials to advance cannabis rescheduling and support medical cannabis and cannabidiol research. The Department of Justice and Drug Enforcement Administration have also issued a final order moving FDA-approved cannabis products and state-licensed medical cannabis products to Schedule III, while launching an expedited hearing on broader cannabis rescheduling. However, it is still early to say what implications this may have on the cannabis jobs market.
