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Along with the fastest expanding industry that has ever existed comes an exponential increase in employment prospects. Cannabis startups around the country are generating hundreds of thousands of jobs for Americans, with one of the biggest hotspots being Los Angeles.

Cannabis Legislation

Naturally, cannabis businesses want to be located near to the greatest concentration of cannabis users, and Los Angeles is one of those places. According to the Cannabis Marketplace Report, there are approximately 13.7 million people over the age of 21 living in Los Angeles, and of them, over 5 million are cannabis consumers. This is one explanation for the unprecedented boom of cannabis in the state of California and why so many jobs have been created in Los Angeles.

Naturally, cannabis businesses want to be located near to the greatest concentration of cannabis users, and Los Angeles is one of those places.

In fact, BDS Analytics reported an estimate of 99,000 new cannabis jobs in the state of California alone, most of which are expected to be concentrated in San Francisco and Los Angeles: the two cannabis hubs of the state. In total, the country is expected to see over 400,000 new jobs in the cannabis industry by 2021.

The scope of cannabis employment is enormous because the industry itself creates an abundance of sub-industries within it. From wholesale cbd product manufacturers to front-of-house budtenders, there is a whole spectrum of employment prospects in between. From direct jobs such as budtending to “induced” jobs of the industry such as accounting or lawyering, Leafly says that currently, in 2019, 211,000 Americans are feeding their families with cannabis-related jobs (Leafly).

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Interestingly, when California made a switch from an unregulated cannabis industry into stricter regulations, the state saw a dip in cannabis sales. It doesn’t change the fact that they are the second most profitable cannabis state, with $300 million in tax revenue in 2018, just shy of Washington’s $319 million.

Furthermore, a lot of the USA’s marijuana is grown in California, specifically the Emerald Triangle. Strict federal laws prohibiting marijuana make it complicated for plant material to be shipped, even to another legal state. This keeps the majority of jobs local, and with the Emerald Triangle in California, so many jobs are concentrated in the state — especially Los Angeles and San Francisco.

In 2018, the US experienced a 44% gain in the workforce as a whole after a 21% increase the year before that. Cannabis undoubtedly has a huge role to play in that increase and is a perfect example of how the disruption of cannabis legalization created jobs rather than destroyed them.

In 2011, the US was facing a total unemployment rate of 9.1%, an enormous figure for a developed country like the USA. The unemployment rate has dropped steadily since then, currently sitting at 3.6%. As the cannabis industry progresses, it is expected to employ many Americans for years to come.

Jamie Cartwright