E-Commerce as a Jobs Engine? One Economist’s Unorthodox View

Andrew Ross Sorkin:

Mr. Mandel is turning heads from Washington to Silicon Valley with a provocative and unorthodox argument: He asserts that the move toward e-commerce is creating more jobs than are being lost in the brick-and-mortar retailing industry — and that these new jobs are paying much higher wages than traditional retail jobs.

Mr. Mandel, chief economic strategist at the Progressive Policy Institute in Washington, contends that most economists are using the wrong job numbers to measure the e-commerce industry. He says that government numbers and conventional industry classifications don’t properly count all the jobs associated with e-commerce — in particular, the numbers miss large parts of the industry like fulfillment centers and distribution warehouses. As anyone who has noticed the growing volume of big brown boxes being delivered to people’s homes can imagine, facilities like that, which are tied to the e-commerce sector, are expanding rapidly.