Ecommerce Sector: Adding More Jobs than Traditional Retail is losing?

Ecommerce Sector: Adding More Jobs than Traditional Retail is losing?

The age of the brick-and-mortar retail store is far from over, but there’s no denying that the boom of the eCommerce industry has led to job cuts in traditional retail. While the workforce at traditional retailers has dwindled over the past decade, one economist – Michael Mandel – claims that the eCommerce industry is providing more well-paying jobs than are being lost in the brick-and-mortar retailing industry.

Mandel – the chief economic strategist at the Progressive Policy Institute in Washington – challenges that economists are incorrectly measuring the amount of jobs generated by eCommerce, as workers employed by fulfillment and distribution centers aren’t categorized as eCommerce employees.

Such roles are classified by the government as “general warehousing” and when Mandel dug deeper into county by county job fluctuations in this sector since 2007, he found that increases are seemingly correlated with the building of fulfillment centers. It’s impossible to know how many jobs in the segment are specific to eCommerce warehouses, but Mandel is adamant that it’s far more than have been attributed to the eCommerce industry.

Economists are incorrectly measuring the amount of jobs generated by eCommerce, as workers employed by fulfillment and distribution centers aren’t categorized as eCommerce employees.

When he ran the numbers closely, he concluded that from 2007-2017, the eCommerce sector generated 397,000 jobs in the United States, whereas only 76,000 were lost in the traditional retail industry. It’s certainly hard to deny the fact that eCommerce warehouse jobs have skyrocketed over the last decade. While it’s difficult to decipher if the economist’s report is 100 percent accurate, the ideas and thought process behind it are very compelling.

eCommerce is a fascinating workforce to analyze, as it creates strong employment opportunities on the digital side of things – including website development and implementation, or the physical aspects – like order fulfillment and the actual delivery of packages. As a provider of end-to-end eCommerce solutions for top retailers, Newgistics contributes to both sides of the eCommerce coin. It’s an industry that will continue to grow – no matter how economists choose to flip the numbers.

To learn more about how Newgistics contributes to all aspects of eCommerce, from device to doorstep, please visit: www.newgistics.com.

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