The legal cannabis industry in the U.S. is thriving, with the highest-ever number of jobs and sales reported in 2024. According to a report by Vangst, there were 440,445 full-time equivalent jobs in the legal cannabis industry at the beginning of the year, a 5.4 percent increase from the previous year. Annual sales of legal marijuana, both recreational and medical, reached $28.8 billion in 2023, marking a 10.3 percent increase from the year before. The industry has seen significant growth over the past decade, with the legalization of marijuana for recreational purposes in several states.
California leads the way with the most marijuana jobs per state, with 78,618 positions as of March. Michigan follows closely behind with 46,746 jobs, and Florida ranks third with 30,238 jobs, despite being a medical-use-only state. Even states that only permit cannabis for medical use, such as Pennsylvania and Oklahoma, have made their way into the top 15 states for marijuana jobs. Vangst attributes the growth in the industry to expanding markets, particularly in the Midwest and along the East Coast. Michigan saw significant growth in 2023, with sales exceeding $3 billion and the creation of 11,000 new jobs.
In the East Coast states of Connecticut, Maryland, New Jersey, New York, and Rhode Island, cannabis markets have flourished with total revenue growing by 50 to 100 percent in 2022 and the creation of over 13,000 new jobs. However, the national 5.4 percent increase in jobs was not evenly distributed among legalized states. The West Coast industries experienced a decline, with 15,000 jobs lost across California, Colorado, Oregon, Washington, and Nevada. Despite this setback, the industry has seen substantial growth over the past decade, with a near four-fold increase in jobs since 2017.
Although the legal cannabis industry has experienced significant growth, it has also faced challenges in 2024. An oversupply of cannabis in many states has led to farmers selling at historically low wholesale prices, squeezing profit margins throughout the supply chain. Consumers may enjoy lower prices, but retailers are struggling as a result. The industry faced a small decline in 2022, attributed to a post-pandemic sales slump, investment pullback, global inflation, rising interest rates, depressed wholesale prices, and changes in consumer purchasing patterns. However, predictions of new legal markets creating thousands of new jobs have proven to be true.
Despite the challenges, the legal cannabis industry in the U.S. continues to thrive, with growing job opportunities and sales. As more states legalize marijuana for both recreational and medical use, the industry is expected to see further growth in the coming years. The report by Vangst highlights the importance of expanding markets, particularly in the Midwest and along the East Coast, as key drivers of growth in the industry. While challenges such as oversupply and price pressures persist, the overall outlook for the legal cannabis industry in the U.S. remains positive.
