A study by the University of Georgia suggests that laws allowing medical cannabis may help reduce health-related employee absences and potentially deliver significant savings for employers.
Published June 10, the research examined employment and demographic information from the U.S. Bureau of Labor Statistics and the U.S. Census Bureau. Researchers reviewed records involving over 20 million people from 1990 through March 2025 to assess whether changes in cannabis policy were associated with workplace attendance.
Their analysis found that states adopting medical cannabis decriminalization experienced an estimated 6.9% decline in absences linked to health problems. By comparison, recreational marijuana legislation was not associated with a statistically meaningful change in health-related absenteeism.
Over 40 states had approved medical marijuana programs by March 2025, while recreational cannabis was legal in 25 states.
The largest decreases were concentrated among occupations involving substantial physical work. Absences among fabricators and other manual workers dropped 39%, while machine operators recorded a 33% decline. Health service employees experienced a 32% reduction, followed by agricultural workers at 18 percent, and construction employees at 10%.
Absences in durable-goods manufacturing declined 31%, while non-durable manufacturing recorded a 16% decrease. Agriculture posted a 16% reduction, followed by non-health staff services at 11%, construction at 9%, and business operations at 8%.
Study author Patryk Babiarz noted that workplace illness carries a substantial economic burden. Babiarz pointed to estimates that place the annual productivity losses associated with absenteeism at roughly $225 billion. He added that medical cannabis could produce economic savings by helping some employees remain at work rather than taking health-related leave.
Researchers suggested that access to cannabis for medical purposes could help some people cope with symptoms involving psychological distress, chronic pain, and muscular problems.
The findings indicated that decriminalization was linked to a larger reduction in missed work than the introduction of retail dispensaries alone. Workers whose education ended at high school or earlier recorded the most pronounced decrease, with absenteeism falling 36%.
However, the researchers cautioned that the findings have limitations. The underlying data came from surveys based on participants’ own reports, meaning the researchers could not independently confirm whether individuals used marijuana to manage pain or other health concerns.
The study also did not assess how long individual periods of sick leave lasted or determine whether cannabis legalization contributed to adverse behavioral or health effects. In addition, the researchers did not examine the influence of workplace drug-testing programs or employer policies that prohibit cannabis use, even where medical marijuana is permitted under state law.
Entities like TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) operating in the marijuana industry are unlikely to be surprised that the use of medical marijuana reduces the number of days that employees take off work since the therapeutic benefits of cannabis are yet to be fully documented.
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