Is Ecom a Jobs Engine?

The New York Times: Michael Mandel, an economist, “asserts that the move toward e-commerce is creating more jobs than are being lost in the brick-and-mortar retailing industry — and that these new jobs are paying much higher wages than traditional retail jobs … He says that government numbers and conventional industry classifications don’t properly count all the jobs associated with e-commerce — in particular, the numbers miss large parts of the industry like fulfillment centers and distribution warehouses.”

“Mr. Mandel has combed through the job statistics on a county-by-county basis and come to this counterintuitive view: From December 2007 to May 2017, by his count, the e-commerce industry has created 397,000 jobs in the United States, and this compares with the loss of 76,000 jobs in the traditional retail industry. And those jobs related to e-commerce, he says, pay about 30 percent more than the brick-and-mortar ones.”

“To Mr. Mandel, it’s not that e-commerce jobs are directly replacing traditional retail jobs. Rather, he describes a world in which some of what he calls ‘unpaid household labor’ that we all do when we drive to the mall, park, shop and bring the goods home has been transferred into the labor market.” As for automation and robots, he thinks “it will take longer for them to replace humans than we think.”


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