Jobs

Online Shopping Creates Growing Number of Jobs

A Census Bureau report released Thursday puts more precise numbers than ever before on the e-retail revolution.

According to the Bureau’s newly published “County Business Patterns: 2012” report, it’s not just Amazon (NASDAQ: AMZN) and eBay (NASDAQ:EBAY)  that are calling the shots. The number of electronic shopping establishments shot up 27.4% between 2011 and 2012 to reach 30,185 separate businesses.

While that statistic alone is substantial, overall employment numbers reached 365,508 in 2012, a 13.7% increase over the previous year. Compared to brick-and-mortar stores’ employment, which edged up just 0.7%, e-retail is creating a sizable job market of its own.

But not everyone is benefiting everywhere. While brick-and-mortar stores have a habit of popping up across the nation, e-retailers are more particular about their headquarters. Their businesses are unhindered by customer proximity, instead revolving around other optimization areas. Supportive infrastructure, lower taxes, cheap operation costs, and a steady stream of smart workers are all reasons an e-retailer might set up shop somewhere a brick-and-mortar retailer would never touch.

William Bostic Jr., the Census Bureau’s associate director for economic programs, noted in today’s press release that “Unlike traditional stores, which are located throughout the country, online shopping establishments and jobs are in concentrated areas.”

Topping the list are the usual suspects: southern California, New York City, and Chicago. But Memphis, Tenn.; Las Vegas; and Grand Rapids, Mich., also make appearances among the top areas for e-retailer employment.

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