Cannabis jobs in New Mexico pay more than room and board

A recent report released by the New Mexico Department of Workforce Solutions shows that people — particularly former employees of the lodging and hospitality industry — who recently accepted jobs in the cannabis industry were paid more than previous jobs.

The report states that as of the fourth quarter of 2022, there were 151 cannabis dispensaries in New Mexico and 112 operated as recreational dispensaries or online platforms. There were also registered 21 cannabis companies with a license to cultivate, 10 processors, four wholesale companies and four categorized as “all other sectors”.

Taking these data into account, the state employed 4,666 workers during that period, of which 4,122 were in factories and 171 in cultivation. The cannabis companies were most commonly found in Bernalillo County, followed by Doña Ana County, Santa Fe County, and San Juan County.

The New Mexico Department of Workforce Solutions has broken down employment data for cannabis versus non-cannabis jobs. The agency wrote that 39.3% of New Mexico jobs were cannabis-related in the fourth quarter of 2022, while 35.5% of the state’s workforce was in other industries. These include retail, transportation and utilities (11.1%), leisure and hospitality (8.4%), education and healthcare services (4.4%), professional and business services (4.2%), and numerous other categories that be two percent or less.

A line chart was used to compare cannabis and non-cannabis salary records. “One reason members of this cohort may have left their previous jobs to work in the cannabis industry is to earn higher wages,” the report states. “Analysis of their payroll records shows that their average weekly wage has increased since they entered the cannabis industry.”

In the fourth quarter of 2022, the average cannabis worker was earning $560 a week. “We then compared this average weekly wage to the wages of all employees working for private companies in the fourth quarter of 2022,” the authors continued. “All industries had an average weekly wage of more than $560, with the exception of the lodging and food service industry. The average weekly wage in this industry was $474, which is a $86 difference. The data shows that for some people, the grass is greener in the cannabis industry.”

As of April 2023, the New Mexico recreational cannabis industry has raised more than $300 million. Recreational cannabis sales went into effect in April 2022, and that year regulators nationwide issued an estimated 2,000 cannabis licenses (633 retail licenses, 351 producers, 415 micro-producers, and 507 manufacturers). “In just one year, hundreds of millions of dollars in economic activity have been generated in communities across the state, the number of businesses continues to grow, and thousands of New Mexicans are employed in this new industry,” New Mexico Gov. Lujan Grisham said in April. “I’m excited to see what the future holds as we continue to develop an innovative and safe cannabis industry for adult use.”

In April, cannabis jobs data company Vangst released an annual report on job growth and declines in certain cannabis markets. Top states for cannabis job growth included New Mexico, Missouri, Michigan, New Jersey, Florida, Montana, Ohio, Massachusetts, Maine, and Illinois, among others. In 2022, 2,532 cannabis jobs were created in New Mexico, a 63% increase year-over-year. As of February 2023, the total number of cannabis jobs was 6,565.

While Vangst data showed that states like Colorado are seeing job losses because more states like New Mexico, Arizona, Nevada, Oklahoma and Montana have legal medical and/or recreational industries. Overall, California (12,600 jobs), Colorado (10,481), Oklahoma (7,224), Oregon (4,278), Nevada (3,276), and Arizona (1,737) lost the most cannabis jobs.