Marijuana's Expansion Could Turn Into a Nightmare for Employers

As we look back at what's transpired in 2016, it could rightly be argued that this was the most successful year ever for marijuana.

2016: Marijuana's most successful year ever

Entering 2016, 23 states had legalized cannabis for medical use, while residents in four states -- Washington, Colorado, Oregon, and Alaska -- had approved the sale of recreational pot to adults ages 21 and up. Furthermore, Gallup's 2015 marijuana poll found that 58% of Americans favored the legalization of recreational weed.

Now, less than two weeks before the end of the year, 28 states have legalized medical cannabis, two of which did so entirely through the legislative process (Ohio and Pennsylvania). The number of recreational pot states has also doubled to eight from four, with residents in California, Maine, Massachusetts, and Nevada all approving statewide initiatives to legalize adult-use weed. Even marijuana's public approval has increased, with the 2016 Gallup poll finding that 60% of Americans want to see pot legal across the U.S. -- a new all-time high. For added context, just 25% of Americans wanted to see marijuana use legalized two decades ago.

The proof of marijuana's success can be seen in its election near-sweep (sorry, Arizona), as well as in the rapidly growing legal dollar figures behind the industry. Investment firm Cowen & Co is forecasting compound annual growth for the legal pot industry of nearly 24% through 2026, while ArcView is calling for 30% annualized legal sales growth through the end of the decade.

Marijuana's expansion could very well lead to an employment boom within the industry, with some pundits calling for a 100% to 200% increase in pot jobs available in the near future. CNBC is estimating that the cannabis industry already employs about 150,000 people, so we could be talking about another 150,000 to 300,000 jobs being created solely because of marijuana's state-level expansion.

However, outside the marijuana industry, it could be another story.

A nightmare for employers is brewing

While marijuana's expansion is setting up bountiful opportunities within the pot industry, it could be narrowing employment opportunities elsewhere.