Report: Michigan’s Cannabis Industry Led State’s Job Creation from 2018-2024 

From 2018 to 2024, Michigan’s cannabis industry led job creation in the
state from 2018 to 2024, accounting for 52% of jobs added to the net
private sector, according to U.S. Bureau of Labor Statistics and the
state’s Cannabis Regulatory Agency data analyzed by Crain’s Detroit Business
.

The job creation is a key argument by the Michigan Cannabis Industry
Association (MICIA) in a Court of Claims case. In that case, the
association is pushing back against the implementation of a 24% wholesale
tax, slated to take effect January 1. The group argues the tax violates the
state’s constitution, which requires changes to voter-initiated laws to be
passed by a legislative supermajority.

Attorneys for the state contend that the wholesale tax is lawful because it
is distinct from the retail tax included in the voter-approved adult-use
law and, therefore, does not need the
three-fourths supermajority required to amend voter-initiated statutes.

In the lawsuit, Kevin Blair, a partner at Honigman and an
attorney representing the MICIA, claims that the cannabis industry accounts
for 50,000 of the roughly 60,000 jobs created since 2018. While Crain’s
could not verify those claims, Rose Tantraphol, spokesperson for the MICIA,
told Crain’s that figure is derived from multiple sources and includes
ancillary jobs.

According to the Cannabis Regulatory Agency (CRA), licensed medical and
adult-use cannabis companies employed 41,359 direct employees as of October
31, representing a more than 163% growth in jobs since the CRA began
counting industry employees in October 2021, when it counted
15,722 jobs. Through October this year, the state’s cannabis industry added
6,315 new jobs, marking an 18% growth rate, the report says.

A decision on the case is expected from Judge Sima Patel in the coming
weeks.