Cannabis – The New Economy
With predictions for cannabis demand in Canada reaching $22.6 billion a year, the Canadian economy can expect a huge boost from its legalization.
Impacting the labour market, post-secondary education and tax revenue, cannabis legalization is set to have far-reaching effects on the Canadian economy.
New marketplace, new jobs
The obvious contribution legalizing cannabis will make to the Canadian economy is job creation. Thousands of jobs are destined to emerge, including hands-on positions such as research and development, production, packaging, and security, as well as positions required to run a new enterprise or corporation including clerical, legal, marketing, and accounting roles. We can expect mass hiring of employees to staff these developing new enterprises from the ground up.
Building an industry
Alongside growth in jobs, other infrastructural changes are inevitable, including the need for new growing facilities and supply chain improvements. As a result of increased demand for cannabis, we will also see growth in demand for complementary goods and services.
Cannabis and higher education
With a new industry comes increased demand for qualified professionals in an unexplored field. To accommodate these needs, new post-secondary courses and fields of studies are emerging, providing students and young professionals with the skills and background knowledge required to be successful in this budding business. As production and legal recreational consumption becomes normalized, it’s expected that students will increasingly explore professions and post-secondary programs in the field.
Tax and fees
Finally, legalization is expected to bring in hundreds of millions of dollars in tax and fee revenue for Canada — which includes taxes, retail markups, producer licences and private retailer licences in select provinces.
With the birth of the legal cannabis industry in Canada, the far-reaching impact on the Canadian economy is unfolding in front of us. The effects of increased demand of both the product and other elements in the supply chain will become clearer as the regulatory framework is established and market demand comes into focus.
This is the last in our series on the legalization of cannabis. You can find previous posts by visiting our Employer resources page on our website.