With sales of cannabis stabilizing, companies are regaining their appetite for hiring. But staffing priorities have shifted amid the coronavirus pandemic, according to a new report.
"The first thing businesses do, during a downturn, is tighten expense structures," said Karson Humiston, CEO and founder of cannabis recruitment platform Vangst.
"The good news is moving into Q3, we are seeing hiring come back across the board across all positions," she added.
The report, compiled by Vangst, cannabis wholesale platform LeafLink, and POS software company Flowhub examines the impact of COVID-19 on cannabis sales and employment trends.
After a turbulent 2019, many cannabis companies — especially giants in Canada — were restructuring and cutting expenses, which oftentimes means layoffs. Cannabis giants Aurora Cannabis ($ACB), Canopy Growth ($CGC), and Tilray ($TLRY) had already cut hundreds of jobs by early March, before the pandemic's effects were truly felt in North America.
Even so, many U.S. companies started the year with growth aspirations. Some 70 percent of ancillary cannabis companies, 77 percent of plant-touching companies, and a whopping 89 percent of vertically integrated cannabis companies surveyed in the report were looking to hire at the start of 2020. Then, the pandemic hit. With it came cost-cutting and health-related furloughs and layoffs. Some 70 percent of the 39 companies surveyed in the report underwent pandemic-related layoffs or furloughs.
Months later, as sales have rebounded, so too have hiring appetites. According to the report, 68 percent of companies plan to resume hiring in the second half of 2020. Hiring priorities, however, have shifted.
Almost 20 percent of plant-touching cannabis companies prioritized filling C-suite and executive roles at the start of 2020. But after the onset of the pandemic, only about 5 percent still considered executive hiring one of their top three priorities. Demand for sales jobs has remained consistent throughout the pandemic, whereas marketing and IT workers have become increasingly in-demand.
Coronavirus-related restrictions prompted companies to pivot quickly, demonstrating the importance of a digital focus. About 79 percent of companies surveyed by Vangst introduced curbside pickup and delivery, and 43 percent increased focus on digital marketing and e-commerce. IT jobs also rose as a top-three hiring priority for U.S. cannabis companies surveyed, according to the report. Experts expect IT jobs will remain in-demand.
"We are in a unique industry where we collect a lot of data. Track and trace, ID scanning, monitoring movement of product … [cannabis is] sitting in an untapped goldmine of data," Hanson said.
In spite of coronavirus-related layoffs and restructuring in 2019, jobs in the cannabis industry are expected to continue to grow as the industry matures.
At the close of 2020, Marijuana Business Daily projects there will be some 295,000 jobs in U.S. cannabis — up about 50 percent from the 200,000 reported in 2019. Marijuana Business Daily tallies cannabis-specific jobs like budtenders and trimmers, alongside workers that provide cannabis companies with more general functions like HR and marketing.
Should the industry reach that goal, there will be more cannabis workers than air transportation workers, athletes, industrial engineers, or real estate brokers, according to the Bureau of Labor Statistics.
And by 2024, Marijuana Business Daily estimates the industry will add some 280,000 jobs. At a time when the economy is struggling and politicians across the country are already eyeing the industry as a source of potential tax revenue, continued job growth can only help legalization's cause.
"[Cannabis] is a golden goose states are willing to tap into," said Michael Hanson, director of data science at Flowhub.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
As Big Tech reports Q3 earnings, investors await proof that massive AI and cloud investments from Meta, Apple, Microsoft, and Alphabet are driving real growth.
Eric Trump joins us to discuss American Bitcoin’s mission, market strategy, and why he believes the U.S. must lead the next era of digital currency innovation.
