Cannabis Industry Sees First-Ever Decline in Employment and Revenue
A new report has revealed that the legal cannabis industry has experienced its first-ever decline in both employment and revenue since the legalization 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, resulting in 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 the job market is considered mature, with states like Colorado, California, Washington, Oregon, and Michigan being considered mature markets, while New York, Maryland, and Ohio are considered emerging markets.
The report also highlights a shift in labor demand, with future workforce growth expected to move away from cultivation and toward manufacturing and retail. This is due to the oversupply of cannabis products, which has led to a decline in prices and revenue.
Despite the decline, the report forecasts a modest amount of growth in U.S. retail sales of $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 hearing on broader cannabis rescheduling is set to begin on June 29, but it is still early to say what implications this may have in the cannabis jobs market.
