e for jobs, wages

e for jobs, wages

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ecommerce is a net job creator, rather than a job destroyer, according to the US-based Progressive Policy Institute. “Our research shows that ecommerce has created 400,000 jobs since December 2007, while brick-and-mortar retail has lost 140,000 full-time-equivalent jobs over the same stretch,” the thinktank says in its How Ecommerce Creates Jobs and Reduces Income Inequality report.

The PPI estimates that fulfillment center employment pays around one-third more than its brick-and-mortar retail equivalent in the same area. This suggests the shift to ecommerce jobs is reducing income inequality by raising the wages paid to high school graduates, it says.

A bigger market share for ecommerce has the effect of significantly reducing the income gap, not increasing it, the PPI contends. It adds that regular retail jobs are low paying, often part-time and with limited benefits. “As such, they contribute to the general economic malaise and inequality.”

It adds that the expansion of ecommerce has the ability to reverse the years of deteriorating relative wages in the retail sector that have done so much to drive rising inequality.

Image: PPI

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