There is a perception that online e-commerce is decreasing employment in the traditional bricks and mortar retail industry. In order to gauge this assumption, data on overall retail trade and pure play online retail employment in the European Union (EU) and the United States was analyzed. Apart from overall retail trade employment, both also have a breakdown of employment by pure play retail e-commerce (i.e., no physical store). The current International Standard Industrial Classification (ISIC) has a class (4791) under retail trade that encapsulates retail e-commerce: "Retail sale via mail order houses or via Internet." Mail order is included but likely comprises a small portion. Both the EU and the United States have employment data for this category.
Retail employment grew in both between 2011 and 2016. In the EU, traditional retail trade did decline but this was more than made up for by the increase in retail sales over the Internet and mail order. In the USA, both traditional retail and e-commerce employment grew. Bricks and mortar retail also grew e-commerce related employment. However these figures are not possible to determine.
Note: Retail excludes via Internet.
Source: Eurostat and Bureau of Labor Statistics.
Retail e-commerce also generates downstream employment in logistics including delivery services and warehousing. A study found that in the United States, around 400,000 jobs were created in the electronic shopping and warehouse industries between 2007 and 2017 compared to a loss of 140,000 in brick and mortar retail (i.e., a net gain of 260,000); 2.1 jobs were created in warehousing for each job in e-commerce (Mandel 2017).
The United States Bureau of Labor Statistics compiles detailed occupational data on employment in the electronic shopping industry. Around two fifths of occupations are administrative, just over 15% are related to transportation and 6% have to do with computer and related activities. Arts and design occupations such as catalog creation and photography accounted for 3%.
Mandel, Michael. 2017. How Ecommerce Creates Jobs and Reduces Income Inequality. Progressive Policy Institute. https://www.progressivepolicy.org/issues/economy/%ef%bb%bf%ef%bb%bfhow-ecommerce-creates-jobs-reduces-income-inequality/
Retail employment grew in both between 2011 and 2016. In the EU, traditional retail trade did decline but this was more than made up for by the increase in retail sales over the Internet and mail order. In the USA, both traditional retail and e-commerce employment grew. Bricks and mortar retail also grew e-commerce related employment. However these figures are not possible to determine.
| Retail trade employment change (000s), 2011-2016 | ||
| EU | USA | |
| Retail | (120.51) | 674 |
| via Internet | 220.13 | 118 |
| Net | 99.62 | 792 |
Note: Retail excludes via Internet.
Source: Eurostat and Bureau of Labor Statistics.
Retail e-commerce also generates downstream employment in logistics including delivery services and warehousing. A study found that in the United States, around 400,000 jobs were created in the electronic shopping and warehouse industries between 2007 and 2017 compared to a loss of 140,000 in brick and mortar retail (i.e., a net gain of 260,000); 2.1 jobs were created in warehousing for each job in e-commerce (Mandel 2017).
The United States Bureau of Labor Statistics compiles detailed occupational data on employment in the electronic shopping industry. Around two fifths of occupations are administrative, just over 15% are related to transportation and 6% have to do with computer and related activities. Arts and design occupations such as catalog creation and photography accounted for 3%.
NAICS 454100 - Electronic Shopping and Mail-Order Houses, May 2017, United States
| |||
Code
|
Occupation
|
Employment
|
Share
|
43-0000
|
165,950
|
42%
| |
53-0000
|
61,340
|
16%
| |
41-0000
|
40,360
|
10%
| |
13-0000
|
29,820
|
8%
| |
11-0000
|
23,960
|
6%
| |
15-0000
|
23,210
|
6%
| |
51-0000
|
13,870
|
4%
| |
29-0000
|
13,090
|
3%
| |
27-0000
|
10,930
|
3%
| |
Others
|
8,700
|
2%
| |
Mandel, Michael. 2017. How Ecommerce Creates Jobs and Reduces Income Inequality. Progressive Policy Institute. https://www.progressivepolicy.org/issues/economy/%ef%bb%bf%ef%bb%bfhow-ecommerce-creates-jobs-reduces-income-inequality/
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