Is the Cannabis Industry recession-resistant? | Gigs 420

5/22/2020
Olusegun Akinfenwa
Is the Cannabis Industry recession-resistant? | Gigs 420
 
Since the beginning of the COVID-19 pandemic, the cannabis industry has come under the magnifying glass of economic analysts. Many wondered if the industry that has prided itself as one of the fastest-growing in the U.S. will be able to weather the storm of the current economic downturn. But with the look of things, the marijuana market has so far remained resolute. While other industries are counting their losses and laying off workers, sales across many marijuana dispensaries in the U.S. has risen. Some of the cannabis companies in the country are recording over 50% increase in sales. This makes many industry players remain positive that the future is bright.

Cannabis Market Has Come to Stay

The cultivation or use of the cannabis seemed like a taboo, until about a decade ago, due to the possible legal action for marijuana possession. But now, the situation has changed. The increasing awareness of its health benefits has led many states in the U.S to legalize its production and use. Today, the cannabis business has developed into a billion-dollar industry, emerging as a major employer of labor. It also continues to record impressive growth rates. This has turned it to a bride of investors, with its capital projected to rise to $97.35 billion by 2026.

Why the Cannabis Industry Could Be Resistant to Recession

While this unfortunate situation causes many industries to record business-crippling losses, the cannabis industry and few others are well placed to record positive returns on investment. The following explains the factors working in favor of the cannabis industry.

Health Benefits of Cannabis-Based Products

The awareness of the medical uses of marijuana has increased in recent years. Doctors now recommend cannabis for pain management in muscle, seizures, cancer, and neurology spasm. Because of this, cannabis has become a must-have product for those who enjoy its health benefits. Such people still demand the substance, regardless of the social conditions imposed by the Covid-19 pandemic. As a matter of fact, reports show that many users have doubled their weekly cannabis consumption since the isolation and lockdown began.

Cannabis Decriminalization and Legalization across the Globe

The legalization and decriminalization of the production and use of cannabis in many parts of the world has allowed people to buy the substance more freely. For instance, about 33 states in the U.S have relaxed their laws on marijuana. Other countries in Europe, America and Asia have also legalized it to some extent. This, combined with other factors, made cannabis a regular buy across the world, even while the Covid-19 pandemic has caged most businesses.

Coronavirus Drives up Cannabis Sales

Coronavirus caused increased sales of cannabis products. This finding was reported by Leafy, a major source of information in the marijuana industry. For many cannabis users, the products are essential as part of their medications. In the wake of the lockdown, governments advised people to stock their homes with enough medications that will last at least 30 days. Since cannabis has become an essential medicine to many people, the majority of them bought and are still buying as much as they legally can. This put so much demand on marijuana dispensaries that some of them almost ran out of supplies.

From all indication, many industries are adversely affected by the restrictions occasioned by the Covid-19 pandemic. Yet, the demand for essential commodities, such as medicines remains stable. Since cannabis is also an essential medicine to some of its users, the cannabis business remains lucrative for investors.

While Other Industries Are Laying Off Workers the Cannabis Market is Still Employing

With more than 1 million cases of coronavirus, the United States has become the epicenter of the disease. This has greatly affected the country’s economy, causing an astronomical job loss. In the past few months around 30 million jobs have been lost in the U.S. The marijuana industry, of course, has had its fair share of the losses. It is believed that no less than 2,000 marijuana jobs have been lost in the past few months.

That notwithstanding, the industry is still employing. Following the increase in cannabis demand in many states, many marijuana dispensaries have had to increase their workforce. According to Vangst, there are still around 600 cannabis vacancies per week in various states where marijuana use is legal. This is good news for job seekers in the marijuana market. Though the pandemic might have slowed things down in this fast-growing industry, the marijuana market appears poised to weather the storm and continue its unprecedented growth after the downturn.

How Gigs 420 Can Help You Get Medical Cannabis Jobs

The marijuana industry is fast becoming competitive due to the growing number of job seekers seeking opportunities in the field. Beyond having the skillsets for your dream job, you should also be in the know about the happenings in the industry, especially in terms of cannabis job opportunities. And this is where Gigs420.com can help.

Here at Gigs420.com, we are dedicated to providing a streamlined environment for job seekers and employers to quickly find and post jobs in the marijuana industry. By using our platform, landing your dream job in the cannabis field becomes easier. We also provide an update on the developments within the industry across the United States. For recent job offers check out click here.