State officials report that individuals joining the legal marijuana workforce have enjoyed increased wages compared to the jobs they left outside the adult-use cannabis sector.
As first ,reported by High Times, workers in New Mexico’s recently legalized recreational cannabis industry are receiving better pay than in their previous non-marijuana employment positions. According to a report published in the New Mexico Department of Workforce Solutions, those individuals surveyed, who predominantly worked in the accommodation and food services sectors previously, indicated a significant wage increase upon entering the adult-use cannabis sector.
“The data show that for some people, the grass is greener in the cannabis industry,” the report says.
“The data show that for some people, the grass is greener in the cannabis industry.”
– Report on New Employment by New Mexico Department of Workforce Solutions
New Mexico’s legal marijuana sector officially opened for business in April 2022. Since that time, the state reports a total of 151 cannabis dispensaries currently in operation, with 112 operating as either recreational dispensaries or online businesses. Additionally, the report listed 21 businesses as licensed cannabis cultivators, ten more as processors, four as wholesale operators, and four more designated as “all other sectors.”
Moreover, by the end of last year, the report indicated that 4,666 people were employed in New Mexico’s legal marijuana industry, and of that total number, close to 90% worked in the retail sector.
Another interesting finding from the report concerns the breakdown of new jobs for the fourth quarter in the state. The department compared employment statistics between cannabis-related employment and non-cannabis jobs. According to the data, the agency wrote that a whopping 39.3% of Q4 2022 jobs were in the cannabis sector alone.
Much of that job growth results from the fantastic first-year performance within the burgeoning market sector. Since legal adult-use sales began last spring, the industry has generated more than, $300 million in revenue, an achievement New Mexico Gov. Lujan Grisham enthusiastically touted recently.
In April, Gov. Grisham said, “In just one year, hundreds of millions of dollars in economic activity has been generated in communities across the state, the number of businesses continues to increase, and thousands of New Mexicans are employed by this new industry. I’m excited to see what the future holds as we continue to develop an innovative and safe adult-use cannabis industry.”
“In just one year, hundreds of millions of dollars in economic activity has been generated in communities across the state, the number of businesses continues to increase, and thousands of New Mexicans are employed by this new industry. I’m excited to see what the future holds as we continue to develop an innovative and safe adult-use cannabis industry.”
– New Mexico Governor Lujan Grisham
That powerful financial performance spurred the explosive employment expansion in the industry and, according to the report, also provided workers with a substantial incentive to leave their current jobs and pursue employment in the new market (See graph below).
As the report states, “One reason why members of this cohort may have left their previous place of employment to work in the cannabis industry is to earn higher wages. Analyzing their wage records shows that their average weekly wage increased once they joined the cannabis industry.”
“One reason why members of this cohort may have left their previous place of employment to work in the cannabis industry is to earn higher wages. Analyzing their wage records shows that their average weekly wage increased once they joined the cannabis industry.”
– Report on New Employment by New Mexico Department of Workforce Solutions
The results in New Mexico come as the industry is experiencing an alarming contraction in sales, revenues, and employment. According to its annual report on job growth and decline in the industry released in April, cannabis job data company ,Vangst reported a substantial loss of jobs in California (12,600 jobs lost), Colorado (10,481), Oklahoma (7,224), Oregon (4,278), Nevada (3,276), and Arizona (1,737).
However, states like New Mexico, Missouri, Michigan, New Jersey, Florida, Montana, Ohio, Massachusetts, Maine, and Illinois reported robust market and job growth for the same period, with New Mexico gaining 2,532 cannabis jobs, which is an increase of 63% compared to the previous year.
Market experts attribute much of the volatility to overproduction, the “hangover” from the COVID boom times, and basic sector corrections all developing industries experience as they move from new to more mature markets. The most encouraging takeaway from the New Mexico report should be that the cannabis industry is becoming a massively productive cog in the overall American economy.
Furthermore, as more and more states begin legalizing recreational sales, employment opportunities will only improve for Americans grappling with a rapidly changing economic landscape. One thing is for sure. “Flower Power” now has an entirely new and powerful meaning for the descendants of the original “Flower Children.”