Key Takeaways
- Hiring Surge Anticipated: 86% of cannabis companies are preparing to increase hiring in 2024, signaling industry growth and recovery.
- Salary Growth: Cannabis industry salaries are rising faster than in non-cannabis sectors, with top-end salaries increasing by 4.7%.
- Talent Mobility: A high demand for career advancement opportunities within the cannabis industry leads to frequent job transitions.
- Experience Over Benefits: Employers prioritize cannabis industry experience, while job seekers value career development opportunities above increased benefits.
- Vangst's Role: As a job platform, Vangst connects over 1,500 cannabis businesses with skilled professionals, aiming to fill every sector role.
Industry Recovery and Hiring Trends
The latest Cannabis Salary Guide from Vangst, derived from a survey of over 1,000 employers and workers, showcases a promising recovery trend in the American cannabis industry following two tumultuous years.
A release mentions that despite the challenges of 2023, the cannabis sector has witnessed salary growth rates surpassing those of non-cannabis industries. This resilience is further emphasized by the anticipation of a hiring revival later in the year, with 86% of surveyed companies planning to increase their workforce, particularly in core areas.
High-value employees in the cannabis industry have experienced significant pay increases, with top-end salaries rising by 4.7%, edging out the 4.1% average increase seen in non-cannabis industries. However, the industry continues to grapple with talent mobility issues, as many employees seek better career advancement opportunities, leading to increased job transitions within the sector.
Vangst's Vision for 2024
Karson Humiston, Founder and CEO of Vangst, expresses optimism about reversing the downsizing trend experienced in 2022 and 2023.
Humiston emphasizes the industry's commitment to investing in its greatest asset: its people. With talent and expertise being more valued than ever, Vangst's platform is crucial in facilitating this growth by connecting over 1,500 leading cannabis enterprises with the necessary talent to thrive.
"We expect 2024 to mark a return to hiring and investment in our industry's greatest asset: our people," Humiston said, as per the release. "Talent and expertise are more valued than ever before."
The survey also highlights the increasing importance of relevant cannabis industry experience among hiring employers, with 63% citing it as their top criterion. Surprisingly, job candidates prioritize "greater career development opportunities" over increased benefits in their next role within the cannabis industry.
What We Think
The Vangst 2023 Cannabis Jobs Report indicates a nuanced trajectory for the cannabis industry's labor market. Despite the sector's exponential growth over the last decade, 2023 marked the first year-over-year decline in employment since 2012, with a slight 2% drop. This downturn, attributed to the post-pandemic economic climate, inflation, and interest rates, suggests a temporary stabilization rather than a long-term decline.
Vangst's historical commitment to providing data-driven insights into the cannabis job market, as highlighted in their annual salary guide surveys, underscores the industry's resilience and adaptability.
Looking ahead, the forecast for 2024 is optimistic, with a significant majority of cannabis companies planning to hire, reflecting confidence in the sector's growth and the ongoing legalization trends. This prospective hiring surge aligns with Vangst's role in shaping future hiring trends and providing transparency in a market that lacks official data due to federal prohibition. As the industry professionalizes and expands into ancillary services, the demand for a diverse, skilled workforce is evident.
This scenario suggests a robust recovery and growth phase for the cannabis industry, poised to capitalize on evolving legal landscapes and consumer trends. For professionals considering a career shift, the cannabis sector offers promising opportunities, especially as companies increasingly value industry-specific experience and career development prospects.
[Screengrab image via Vangst]