Retail is dead. The employment prospects for young people who are high school graduates are getting worse. And all this happens because Amazon and its similar companies have won consumers, who are increasingly turning to e-commerce. This is the predominant narrative.
An economist, however, argues that has not been built on a proper base. Michael Mandel, head of the Department of Economic Strategy at the Progressive Policy Institute, concludes that the consumers' shift to e-commerce creates more jobs than those lost by the closure of stores. These new jobs are paid much higher than jobs in traditional retail. According to Mr. Mandel, most economists use wrong data to describe the advantages and disadvantages of e-commerce. Up to now, routine calculations do not take into account jobs related to e-commerce, in particular packing and distribution centers. These sectors are expanding rapidly.
Job Positions created by e-Commerce
The biggest proof are the large cartons that arrive at a high frequency at the homes of consumers. In the US, Mr. Mandel collected and compared data from each state and concluded: From December 2007 to May 2017, e-commerce has created 397,000 jobs. At the same time, 76,000 jobs have been lost in the traditional retail trade. Wages in sectors related to retail trade are also 30% higher than vendors' wages. "To be honest, I was surprised by these facts. I did not expect it, "said Mr Mandel, stressing that" numbers speak for themselves ".
With this in mind, the economist of the Progressive Policy Institute has developed a pretty optimistic picture of e-commerce. It could be said that it is the driving force for creating jobs with better wages. Profits from productivity gains are not shared with shop workers. Today, however, employment in packing and distribution centers is very well paid. In many cases full time and social benefits are offered. Many centers open up in new areas, which means that job positions are being created for the first time.