Recreational cannabis boosts Oregon's economy

«Cannabis is a job-creation machine,» according to Beau Withney, an economist from Oregon. According to the study According to a report he published with his working group, recreational cannabis has boosted the local economy by 1.2 billion dollars.

Since the legalization of recreational cannabis in 2015, more than 900 companies were licensed by the State of Oregon. According to the same economist, more than 1,225 entrepreneurs have applied for a license from the authorities to carve out a niche for themselves in the cannabis industry. An estimated 12,500 jobs were created in 2016 that are «directly related to production, distribution, quality control, and sales.» According to this study, Oregon has 426 companies cannabis production facilities and 344 dispensaries. The remaining 130 companies represent the testing laboratories, wholesalers, and researchers.

This study excludes indirect cannabis-related activities such as security, marketing, consulting firms, and even government-appointed regulators.

Wages and Purchasing Power

In 2016, Oregon businesses distributed approximately $315 million, amounting to about 12$ per hour (€11.1). According to this economist, the emergence of this legal revenue has contributed $1.2 billion to the state’s economy. Currently, the legal cannabis market employs 300,000 to 400,000 people.  »That number is expected to reach one million in the coming years.» By way of comparison, on a national scale, the education and construction sectors have created 324,000 jobs, according to the U.S. Bureau of Labor Statistics.

Officials are delighted with the West Coast state’s newfound appeal. Elissa Gertler says  »The steady influx of newcomers shows that our region is conducive to economic development and competitive on a national level. »Indeed, Oregon—a producer of beer, wine, and cannabis—offers a wealth of attractive opportunities for building a career. While Portland welcomes 111 people a day, Oregon’s more remote towns are also benefiting from this economic boost.”.

Beau Whitney states that a more complex and comprehensive study will be published sometime in 2017. He works for the Oregon House of Representatives Committee on Economic Development and Trade.

Théo Caillart