August 19, 2016
Although it’s impossible to say for certain what the retail sector would be like without the Internet, J.P. Morgan’s analyst Michael Feroli estimated that there would be 1.2 million more retail jobs without the technological advent.
The optimization of online shopping and giant retailers, like Amazon’s efficiency in shipping, has meant that less human workers are necessary in the industry. Furthermore, online workers account for over $1 million in sales revenue, whereas traditional workers generate $279,000.
Although the estimate seems to imply that online workers have “stolen jobs,” Feroli cautions that’s not the cause. Rather, the productivity of the internet means that less workers are necessary to get the same jobs accomplished.
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