Cannabis industry jobs paradox: revenue up 4.5% to $30.1B while employment drops 3.4% in mature markets in 2024.

Cannabis Industry Paradox: Revenue Up, Jobs Down in 2024

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Author: The Qredible Team
Date: June 26, 2025

The regulated cannabis industry generated $30.1 billion in revenue in 2024—a 4.5% increase from the previous year—while simultaneously shedding 15,000 jobs. This 3.4% employment decline brought the total workforce down to 425,000, according to Vangst's "U.S. Cannabis Jobs Report 2025." The numbers tell a story of an industry that continues to grow financially while becoming more efficient with human resources, particularly in states where cannabis markets have reached maturity.

Market Pressure in Established States

The cannabis employment data reveals stark differences between states. Established markets are experiencing job contractions while newer markets create opportunities. This pattern stems from:

  • Economic adjustments in response to market saturation
  • Price compression
  • Heavy taxation in older markets

A striking divide exists in cannabis job markets nationwide. Pioneer states now face harsh realities: dwindling workforces despite steady sales as cannabis prices tumble. The flood of licenses granted in early-adoption states has created brutal competition where profits vanish amid product surplus.

The employment bloodbath hits hardest in cannabis strongholds. Sky-high taxes, crushing compliance burdens, and cut-throat competition have triggered widespread layoffs. The numbers tell a grim story—some leading markets have watched a quarter of their cannabis workforce disappear within twelve months.

Cash-strapped cannabis operators have shifted from growth mode to survival mode. While waiting months or years for regulatory green lights, companies burn through capital reserves. This perfect storm has created a paradox: businesses selling more cannabis than ever while steadily cutting their teams to stay afloat.

Growth in New Markets

The contrast between established and emerging cannabis markets is striking. While established markets contract, states newer to legalization are experiencing extraordinary growth. New York, for example, added 743 new adult-use marijuana licenses in 2024, resulting in a 209% increase in cannabis employment.

Similarly, Maryland and Ohio have seen significant job creation as their markets develop. These emerging markets benefit from learning from the experiences of pioneer states, often implementing regulatory frameworks that balance oversight with business viability.

According to the Vangst Jobs Report, the pattern follows a predictable market evolution: initial boom during market opening, followed by consolidation and eventual efficiency adjustments as competition intensifies. This cycle explains why early-adoption states like Colorado, Washington, and Oregon are now seeing workforce reductions.

US-Canadian Salary Differences

A notable aspect of cannabis employment is the significant salary difference between the United States and Canada. According to "The 2025 Cannabis Industry Salary Guide" from White Ash Group, American cannabis workers earn up to 20% more than their Canadian counterparts, particularly in newer markets.

This salary gap reflects different stages of market development. Canada's federally legal market has been established longer, creating more stable employment conditions. "In Canada, it's been legal for a long time, so things are settling down," explains Graydon Welbourn, managing partner at White Ash Group. "The sentiment in the U.S. is that it's still an exciting green rush opportunity."

Geographic Salary Variations

Cannabis industry compensation varies dramatically by location. The differences extend beyond simple cost-of-living adjustments, reflecting each market's unique regulatory environment, competitive dynamics, and labor supply.

In California, master growers command salaries between $95,000 and $125,000, substantially higher than Colorado's range of $75,000 to $95,000 for the same position. 

Retail store managers see similar geographic variations, with California ranges of $70,000 to $95,000 compared to Arizona's $55,000 to $75,000. 

Even entry-level budtender positions show significant regional differences, with hourly rates of $17-$23 in California versus $15-$18 in Colorado.

These geographic disparities reflect multiple factors. High-cost regions like California naturally offer higher nominal compensation, but regulatory complexity also plays a role. Markets with more demanding compliance requirements typically offer higher compensation for positions responsible for managing these complexities.

International Focus in Canada

Canada is seeing an uptick in international positions as the country's cannabis producers focus on overseas markets. Positions in international business development have a different pay structure than similar positions domestically because the supply chain is more complicated and the laws are different, Welbourn said.

"There are a lot of companies that just grow flower for other countries – they don't even bother selling it in Canada," Welbourn said. "A lot of these companies are starting to have an international strategy."

This international orientation represents a potential future direction for U.S. operators if federal legalization eventually permits exports. Currently, most U.S. cannabis businesses remain restricted to domestic operations due to federal prohibition.

Market Outlook

The cannabis industry's employment patterns continue to shift, with regional market dynamics playing an increasingly important role in determining opportunities. While the overall 3.4% job contraction represents a significant shift, it masks the growth occurring in emerging markets.

For businesses, workers, and regulators, these trends highlight the importance of understanding local market conditions. Companies must balance efficiency with growth opportunities, workers need to develop transferable skills, and regulators face the challenge of creating frameworks that support sustainable industry development.

As the cannabis industry continues to mature, employment patterns will likely stabilize, but regional differences will persist as state-by-state regulation continues to shape this unique industry.

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