Medical Cannabis Laws Linked To 6.9 Percent Drop In Absenteeism

New research from the University of Georgia finds that states where medical cannabis is legal or decriminalized report measurably fewer health-related work absences, pointing to a workforce benefit that employers have not fully priced in.

What the study found

The researchers analyzed Census Bureau and Bureau of Labor Statistics data covering 1990 to 2025, a dataset that included more than 20 million workers between the ages of 18 and 61. After controlling for other factors, they found an evident 6.9 percent reduction in health-related workplace absenteeism in locations where medical marijuana was legal or decriminalized.

The effect was larger and more statistically significant when measured from the date of decriminalization than from the start of regulated sales. By contrast, the researchers found no significant effect of recreational cannabis legalization on health-related absenteeism.

Who saw the biggest effect

The absenteeism-reducing effects were concentrated in the occupations and industries where health conditions most predisposed to cannabis treatment are prevalent. Reductions were largest among manual laborers, machine operators, and health service workers, and in sectors such as manufacturing, agriculture, and construction, where a sick day is harder to absorb.

Why it matters for employers

Work absenteeism is a major cost. One estimate puts that total at $225 billion annually in lost productivity alone. Patryk Babiarz, the study’s corresponding author and an associate professor in the UGA College of Family and Consumer Sciences, said medical marijuana could save hundreds of millions of dollars in economic cost simply because people are not missing work.

The finding is a reminder that cannabis policy has labor-market consequences that reach well beyond the dispensaries, and that the relationship between health-related absenteeism and medical access deserves a closer look from HR leaders.