By MICHAEL C. PATTERSON
Job growth in the cannabis industry will be fueled by sustained sales growth and the launch of new state markets, especially on the recreational side of the business. According to analysis from the 2021 MJ Biz Factbook, the marijuana industry will employ 340,000-415,000 full-time equivalent workers across the United States in 2021 and grow to 545,000-600,000 by 2025. A link to the factbook is below:
These figures account for workers directly employed by cannabis businesses, including budtenders and extraction technicians, as well as employees of ancillary companies that support the marijuana industry such as consultants and lawyers. The retail sector constitutes most of the jobs in the cannabis industry, driven by requirements in nearly all states to sell marijuana in distinct physical locations.
Unlike alcohol, marijuana cannot be sold alongside other goods in traditional retail outlets such as a grocery or drugstore. The use of full-time equivalent workers is a method for standardizing employment estimates and equating the hours worked by several part-time employees to the hours worked by full-time employees.
Cannabis job gains in 2021 will be largely driven by the implementation of new markets across the United States, such as recently added states of Connecticut, New York, and soon to be added Rhode Island. Cannabis employment in 2020 exceeded that of mainstream industries such as web developers. Cannabis jobs were more than the number of U.S. nurse practitioners, a high-demand employment sector across the country, particularly during the COVID-19 pandemic.
The 2020 pandemic didn’t lead to wide-scale contraction in the marijuana labor market. Though sales in select markets suffered, such as Nevada where much of the industry is reliant on tourism, many recreational and medical cannabis markets experienced higher than average sales volume.
Analysis
If your business operates in the health care field, the growth of cannabis related jobs will make it harder to find talent. The cannabis industry (medical and adult use) is rapidly evolving into more accepted careers in which to work. Therefore, you will see more medical professionals (MDs, PAs, NPs, Nurses, Therapists, Pharmacists, Laboratory Technicians, Pharmacy Technicians) start to leave traditional medical jobs and begin working in the cannabis industry.
As a medical professional who is a licensed Occupational Therapist and Nursing Home Administrator, I can tell you I was drawn to the cannabis industry because it was just getting started. I feel I can shape the way this industry grows and bring in regulation that is important for public safety, commerce, and patient access. Also, people who come work in the cannabis industry are willing to learn and take direction. This makes employees feel more connected to the company, rather than having to adapt to a medical system that has been in existence for 100 years and is extremely reluctant to new ideas. Furthermore, this trend will lead to fewer companies performing drug screening for cannabis.
Cannabis jobs will become more common, especially when federal legalization is enacted (sooner rather than later). As a medical healthcare employer, it is smart to be aware of this trend and find ways in which you can compete for talent with this new and exciting industry.
Michael C. Patterson, founder and CEO of U.S. Cannabis Pharmaceutical Research & Development of Melbourne, is a consultant for the development of the medical marijuana industry nationwide and in Florida. He serves as a consultant to Gerson Lehrman Group, New York and helps educate GLG partners on specific investment strategies and public policy regarding Medical Marijuana in the U.S. and Internationally. He can be reached at mpatterson@uscprd.com
