Cannabis Labour Market Analysis - Labour Market Analysis GOLDBECK RECRUITING
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Cannabis Labour Market Analysis
Introduction
Since cannabis was legalized in forum found that 71% of respondents Overall, 59% of respondents agreed
Canada on October 17, 2018, the believed the cannabis industry that the cannabis industry was an
rippling legal and bureaucratic impli- would offer competitive salaries, and attractive employer.[1]
cations which followed the contro- 70% of respondents also believed the
versial policy decision have out- industry was set to employ signifi- However, almost half, or 47%, of
paced the industry’s market growth. cantly more people in the future. those currently employed or look-
However, with countries such as Aus-
tralia, Israel, Poland, and some Euro-
100% OTHER (specify)
pean nations recently moving to
MY PERSONAL BELIEFS
legalize cannabis for medical and AND ATTITUDES ABOUT
CANNABIS CONSUMPTION
adult use, the market is set to 75%
I’M NOT INTERESTED IN ANY TYPE
expand worldwide. One of the many OF EMPLOYMENT AT THIS TIME
implications of cannabis’ legaliza- I DON’T HAVE ANY REASONS TO
NOT CONSIDER WORKING IN THE
tion is the corresponding job market 50% CANNABIS INDUSTRY
boom and, in the early stages of the ETHICAL CONSIDERATIONS
industry’s maturation, surprising
CONCERNS ABOUT STIGMA/
reflections in the job market are 25% SOCIAL ACCEPTANCE (e.g.
opinion of my family, friends,
already evident. For example, the future employers)
February 2020 Goldbeck Recruiting CONCERNS ABOUT SECTOR
0% INSTABILITY
poll of members of the Angus Reid Interested Not Interested
CONCERNS ABOUT
INTERNATIONAL TRAVEL (e.g. to US)
INTEREST IN WORKING FOR CANNABIS COMPANY
CONCERNS ABOUT
COMPANY INSTABILITYing for work were not interested in "In our experience as a conduit retail environment or full time work in
working in the cannabis industry, between candidates and em- a dynamic marketing and publicity
ployers for cannabis positions, we
and 55% of respondents figured role.
are seeing trends supporting our
people who work in the cannabis findings in the report. We regularly
industry are likely to face negative have candidates decline to The majority of jobs created so far
stigmas or assumptions from the entertain positions due to their by the cannabis industry in Canada
general public. There is also a concerns around the industry, but fall into the horticultural production
that doesn't mean the searches
strong correlation showing that the steps of the pipeline. The statistics
aren’t feasible. There are many
willingness to believe, or not people out there that are excited are impressive and telling: in the
believe, in the stability and growth by the new industry, and want to years following the legalization of
potential of the industry depends invest themselves in that future." cannabis in Canada, the number of
on respondents’ personal ethical positions filled by federally licensed
beliefs. As such, the cannabis HENRY GOLDBECK, PRESIDENT producers has more than quadru-
industry is perhaps facing a tumul- pled. In 2019, Statscan counted
tuous relationship with the job mar- 9,200 full time jobs, up from 2,630 in
ket—and with slower growth report- its production pipeline, from the the 2018 fiscal year and a mere
ed this year, the industry is perhaps first to the last step in harvesting, 1,438 in fiscal 2017. Of these, 60 per-
facing a much greater instability.[2] processing and eventually selling cent of cannabis industry jobs were
the end products. This creates filled by workers involved in produc-
TYPES OF JOBS CREATED ample opportunities both for highly tion, including cultivation and pro-
skilled workers in agriculture and cessing duties. Another 20 percent
The still emerging cannabis industry horticulture as well as city-dwellers were found to work in marketing,
is creating jobs along each stage of looking for either part time work in a sales and administrative or pub-lic-facing roles, with the last 20 per- which are highly contingent on nies were the two most profitable
cent unidentified.[3][4] It is worth location. While storefronts and head cannabis companies in the country
noting that when thousands of can- offices are often located in densely as of 2019, but interest in the industry
nabis retail sites were shuttered after populated urban areas, production falters from within their respective
not successfully obtaining federal and harvesting facilities, as well as provinces.[5] For example, the
licensing immediately after the shipping centres, are located in less Atlantic provinces and Ontario
legalization, and many jobs were densely populated areas, such as were the most interested at 54% of
lost. rural or industrial communities. The respondents, and Saskatchewan
reason for this division is simple: to (41%), BC (43%), and Alberta (45%)
This upward trend in job numbers, sell, companies need to be near were least interested.[1]
barring a major shakeup in Canadi- their customer base, while produc-
an primary or secondary industries, ing the product requires a much Like most industries which require a
is only set to continue as demand larger footprint which is only avail- rural presence, hiring outside of the
grows. However, reported disinter- able in peripheral communities. facility’s immediate community
est in employment in the cannabis Aurora Cannabis, for example, often requires competitive remuner-
industry highlights the possibility of a operates several of its facilities in ation, benefits and perks to make
shortage of labour as the industry sparsely populated areas of Alberta the job — and the accompanying
continues to grow.[1] and Quebec, including Leduc relocation — more enticing. Howev-
County and Lachute respectively, er, the cannabis industry is also
while its head office is located in unique for the space it occupies in
WHERE FACILITIES ARE BUILT downtown Edmonton. Canopy the public consciousness. Unlike
Growth Corporation operates its many manufacturing sectors, the
The cannabis industry can be rudi- facility and head offices out of cannabis industry remains riddled
mentarily considered as two parts Smith Falls, Ontario. These compa- with stigma as an industry withapparent moral and ethi-
cal qualities. People that
are ethically opposed to
the industry believe that
there is little room for
growth and little stability in 61%
the industry. Those who
are interested in the indus-
try believe that canna-
bis-related employment 43% 45% 47% 50%
41% 52%
would offer competitive
salaries and opportunities 54%
for growth, as indicated
by 84% and 80% respec-
tively of interested respon-
dents to the Goldbeck
Recruiting poll. Of those
disinterested in working in
the industry, only 60% of AURORA CANNABIS HEXO
respondents believed the
APHRIA ALEAFIA HEALTH
industry would offer com-
petitive salaries.[1] Even CANNTRUST HOLDINGS ZENABIS GLOBAL
CANOPY GROWTH CRONOS GROUP
THE GREEN ORGANIC ORGANIGRAM HOLDINGS
DUTCHMAN
% indicates percentage of people interested in working for a cannabis companywith the overall conception that structures as the rest of Canada as without relying on the government.
jobs in the cannabis industry offer settled in the last 200 years. Theoreti- On Mohawk territories, for example,
comparatively high salaries and cally, this means that Indigenous retailer Legacy420 employed 50
benefits, large numbers of the pop- peoples should be allowed to pro- people and was the second largest
ulation remain uninterested, and duce, sell and regulate their own employer on band lands as of
this variation showed no correlation cannabis products outside of feder- August 2019.[7] Such economic
with the locations of head offices al or provincial structures. While surges allow Indigenous people to
and production facilities. One possi- reserves are subject to some laws of work nearer to home and within a
ble explanation: the stigma which the Canadian government, meet- community congruent with their
persists around the cannabis indus- ing the restrictions required to cultural values and beliefs. Given
try today. obtain a federal licence can be that fair regulatory standards are
difficult (such as extensive security reached between Indigenous lands
INDIGENOUS ECONOMIC clearance background checks and and the Canadian government
INVESTMENT AND GROWTH the assumption that individuals hold along with existing tax exemptions,
identification approved by the gov- Indigenous peoples across Canada
For many Indigenous thinkers and ernment Canada),[6] meaning are poised to flourish as the canna-
leaders, the Cannabis Act of 2018 Indigenous communities are vastly bis industry grows.
fell short. In Canada, while federally restricted in their ability to take part
legal, provinces are vested with the in this economic boom. This is especially the case as there
responsibility of structuring sales and are consistently not enough jobs
production. Indigenous peoples In many cases, however, legaliza- available on reserve. According to
living on reserves are not necessarily tion presents an opportunity for self the 2019 Indigenous Economic
governed by the same laws and sufficiency on Indigenous lands Progress Report produced by theThe National Indigenous Economic have the resources or space to REMUNERATION, BENEFITS
Development Board, the employ- grow and harvest cannabis plants. & PERKS
ment rate on reserve is 24.2 percent- For bands like the Kwaw-Kwaw-Apilt
age points lower than the non-In- in Chilliwack, BC, the council is look- With the rapid growth of the canna-
digenous rate.[8] This is a staggering ing to nearby reserves such as the bis industry in mind, workers are
figure given that most unemployed Shxwha:y Village which in 2018 often entitled to competitive remu-
Indigenous peoples are actively sought federal production licenc- neration, benefits and perks within
seeking work.[9] The establishment ing. As such, even if bands do not their contracts. The roles created by
of dispensaries and production grow their own product, there is the cannabis industry have desig-
facilities on reserve lands, then, can interest in importing the product of nations within the North American
feasibly create dozens of perma- other Indigenous communities Industry Classification System
nent jobs on reserve. Presently, most (though when necessary product is (NAICS) which groups workers into
dispensaries opening on Indigenous purchased from off reserve facili- categories which allow for measure-
reserves seem to be owned and ties).[10] This strategy creates space ments that are used to forecast the
operated by residents, with few em- for on reserve positions at all levels health of a given industry. In
ployees or investors brought in from of the production pipeline, from Canada, for example, cannabis
mainstream cannabis. front of house management and dispensary managers (NOC 0621)
budtenders to extraction specialists earn a median hourly wage of
Within the reserve system most busi- at the facility itself. $32.69, with the high median hourly
nesses are run by residents—howev- wage of $35.58 belonging to Alber-
er, cannabis products must be ta. Budtenders (NOC 6421) in
licenced by Health Canada in order Canada make on average only
to be legally sold, and not all bands $14.00 per hour, with a median highof $16.26 in the Northwest Territories. Aurora has opted to sign with Sun- over working in the industry with 23%
An extraction specialist (NOC 2121), Life Financial to provide employee of respondents identifying as such.
however, is reported to make a health benefits, a plan which covers Especially in light of 2019’s reported
median hourly income of $36.00 the use of medical cannabis. Since labour shortage in the industry,
across Canada, with Alberta and this move, other cannabis compa- companies are having to compen-
Ontario offering a high median of nies have followed suit. sate to bring in, and retain,
$38.46.[11] Within Statscan, these talent.[14]
classifications make an appraisal of These gestures towards a more
cannabis worker remuneration lucrative and fulfilling employment However, even despite expecta-
visible, but this is only part of the pic- are necessary to meet prospective tions about remuneration, the Gold-
ture. workers’ expectations. As noted beck Recruiting poll also found a
above, 71% of respondents generational bias: an average of
Some cannabis companies, for assumed the cannabis industry 48% of respondents aged 45 and
example, offer stock options for would offer competitive sala- older were interested in working in
senior managerial staff in addition ries—suggesting an expectation of the cannabis industry, in contrast
to competitive remuneration.[12] higher remuneration given industry with those under 45 of which 58%
For other employees, companies needs, such as the possibility of relo- were interested. Similarly, the poll
like Aurora Cannabis offer competi- cation and the respondents’ con- found a gap which ran along lines
tive life, medical and dental insur- cerns over international travel for of gender, wherein 57% of male
ance along with a moderate Health work (for example, to countries like respondents were interested in the
Spending Allowance and an the United States, where cannabis is cannabis industry, but only 50% of
Employee Assistance Program.[13] still illegal), which composed the female respondents employed or
Rather than employee discounts, largest representation of concerns seeking work were interested.Regardless of remuneration expec- ucts without THC, such as CBD oil, development and marketing, in
tations which consistently remain for the benefits of relaxation and order to carve space in the canna-
high, it seems personal beliefs still pain relief without any mood alter- bis retail market for these new prod-
trump a job-seeker’s attraction to ation. These two arenas — products ucts.
the industry. with THC and without — are con-
tinuing to grow, with dozens of com- However, with legalization not yet
RESEARCH AND INNOVATION panies dedicated exclusively to two years behind us, many compa-
R&D with the intention of develop- nies are still setting up basic stan-
The global economy demands, ing new proprietary additions to the dards of operation to ensure a con-
now more than ever, customization, market. sistently profitable business model.
personalization and an abundance Once the regulatory issues have
of choice; the same goes for the This facet of the cannabis industry been ironed out, it seems likely that
cannabis industry. This industry is expands the types of jobs being cre- companies will be eager to invest
marked by its expenditures in ated. While the need for master more specifically in the clinical test-
research and development, growers, budtenders and retail ing of new products, like skin care or
charging into the consumables managers is still present, an empha- gum and other ingestibles for
market with items such as beverag- sis on research and development roll-out to an excitable market. Simi-
es, softgels, varied edibles and spe- creates new positions for experts in larly, as regulatory bodies become
cialty vape options to satiate its chemistry, biology, and medical more agile in the face of the chang-
consumer base. But that’s not all — and health sciences to oversee and ing cannabis industry, Health
while many people partake in the direct the creation and patenting of Canada would, theoretically, expe-
cannabis industry for the product’s new cannabis based products. dite licensing for new products,
mood altering capacities, more Additionally, these developments further enticing the development of
people are also purchasing prod- create space for experts in business novel products.Summary of Data
For this analysis, we split into two groups those who We then split respondents into groups based on
were interested vs not interested in working in the their stated concerns about working in the canna-
cannabis industry and compared their responses: bis industry and compared their responses to each
• The biggest concern about the industry for other:
people interested was international travel (29%). • People concerned about their personal
However, the most common response was “I beliefs, ethics, or assumed stigma were the most
don’t have any reasons to not consider”. likely to disagree that the cannabis industry
• The biggest concern about the industry for offers career growth opportunities (70%, 61%,
people not interested was personal beliefs and 32% respectively). This could indicate that
(32%). people are letting their personal beliefs influ-
ence their overall opinion of the viability of the
• 60% of people who were not interested and
industry.
84% of people who were interested agree that
the cannabis sector is likely to offer a competi- • For all other groups, the majority believed the
tive salary (71% overall). industry would offer career growth, including
respondents who stated their chief concern as:
•There is a large difference in belief of career
growth opportunities. Most people who are not ◦ Company or industry instability
interested (57%) do not think there are growth ◦ No reasons to be concerned
opportunities, where the vast majority (80%) of ◦ Not interested in any type of
those who are interested think there are growth employment
opportunities. This could indicate that a wider
understanding of opportunities has the potential
◦ International travel
■ Other
for persuading more people to take a chance
on the industry. • Overall 61% of respondents believed the indus-
try would offer excellent career growth opportu-
nities.• People most concerned due to personal between men and women in interest toward-
beliefs are the only group who mostly (52%) sworking in the industry. 79% of men were inter-
disagree that the cannabis industry is likely to ested while 67% of women were interested.
employ significantly more people in the future. • When normalized by looking at people who
For the next section, we looked specifically at cer- were employed or looking for work, there was
tain states of employment: still a gender disparity with 57% of men being
• When normalized by only looking at the group interested vs 50% of women.
who answered “not employed and looking for • When normalized by only looking at the
work”, there was a significant difference full-time employed group, there was a differ-
ence between the interest levels in various
regions:
◦ Ontario and the Atlantic provinces were
CANNABIS INDUSTRY IS LIKELY TO OFFER
most likely to be interested at 54%.
EXCELLENT CAREER GROWTH OPPORTUNITIES ◦ The lowest interest rate was in Saskatche-
Agree Disagree
wan (41%) followed by British Columbia
(43%) and Alberta (45%).
80%
• There is a negative correlation between age
and interest even when normalized by remov-
60%
ing the “not employed and not looking” group -
but only after age 44. Ages 18-44 answered simi-
larly with an average of 58% interest.
40% ◦ 45-54 = 49%
◦ 55-64 = 47%
20% ◦ 65+ = 44%
0%
Stability / Travel / Other Ethics / Beliefs / Stigma
TOP CONCERNSGeneral results: Citations
• A majority of people (53%) are not interested 1 These are the findings of a survey conducted by
in working in the cannabis industry. Goldbeck Recruiting Inc. in February 2020 with a repre-
• People who are unemployed but looking for sentative sample of n=1521 online Canadians aged 18+
work are the most likely (72%) to be interested in who are members of the Angus Reid Forum.
working in the industry.
2 George-Cosh, David. “Pot Sales in Canada to Hit
$3.16B in 2020 despite Slower Growth: Canaccord -
Article.” BNN, October 31, 2019.
https://www.bnnbloomberg.ca/sales-in-canada-s-pot-s
ector-forecast-to-hit-3-16b-in-2020-amid-slower-growth-
canaccord-1.1340822.
3 George-Cosh, David. “Canadian Pot Jobs, Revenue
Have Soared since Legalization: StatsCan - Article.”
BNN, 22 Aug. 2019,
https://www.bnnbloomberg.ca/canadian-pot-jobs-rev
enue-have-soared-since-legalization-statscan-1.130543
6.
4 Government of Canada, Statistics Canada. The Daily
— A Snapshot of Federal Licensed Cannabis Producers,
2018. 22 Aug. 2019, https://www150.statcan.gc.ca/n1/-
daily-quotidien/190822/dq190822c-eng.htm.9 Government of Canada, Statistics Canada. Employ-
5 Reiff, Nathan. “Top Canadian Cannabis Companies ment of First Nations Men and Women Living off
By Revenue.” Investopedia. Accessed February 27, Reserve. 13 June 2019, https://www150.statcan.gc.-
2020. https://www.investopedia.com/top-canadi- ca/n1/pub/89-653-x/89-653-x2019004-eng.htm.
an-cannabis-companies-by-revenue-4587803.
10 “B.C. First Nations Get into Growing, Selling
6 Health Canada. “Cannabis Licensing Application Marijuana before Legalization.” The Columbia Valley
Guide: Cultivation, Processing and Sale for Medical Pioneer, 6 July 2018,
Purposes Licences Application Requirements and https://www.columbiavalleypioneer.com/news/b-c-first
Process to Become a Licence Holder.” Aem, 11 July -nations-get-into-growing-selling-marijuana-before-
2018, https://www.canada.ca/en/health-canada/ legalization/.
services/drugs-medication/cannabis/industry-licens-
ees-applicants/licensing-summary/guide.html#h. 11 Trend Analysis - Explore the Market - Job Bank.
https://www.jobbank.gc.ca/trend-analysis. Accessed
7 “Tyendinaga Mohawk Territory Pot Shop Owner 21 Feb. 2020.
Speaks out against Legal First Nation Licences.” Global
News, https://globalnews.ca/news/5771821/mo- 12 Finance, Personal, and Taxes. “Cannabis and Tech
hawk-pot-shop-owner-first-nation-licences/. Employees Beware: Stock Options Can Lead to Massive
Accessed 21 Feb. 2020. Tax Bill If Shares Go South | Financial Post,” November
15, 2019.
8 “The Indigenous Economic Progress Report 2019,” The https://business.financialpost.com/personal-finance/
National Indigenous Economic Development Board. taxes/cannabis-and-tech-employees-beware-stock-
Accessed 24 Feb. 2020. options-can-lead-to-massive-tax-bill-if-shares-go-south.13 Inc, Aurora Cannabis. “Aurora Cannabis Employee Benefits Plan Now Reimburses Medical Cannabis.” Accessed February 27, 2020. https://www.newswire.ca/news-releases/aurora-canna bis-employee-benefits-plan-now-reimburses-medical- cannabis-688869261.html. 14 “Canadian Greenhouse Labor Shortages Worsened by Growing Cannabis Producers.” Reuters, 29 July 2019. ca.reuters.com, https://ca.reuters.com/article/to- pNews/idCAKCN1UO1T9-OCATP.
You can also read
