The demise of brick and mortar retailers is a direct consequence of the success of online retailers like Amazon. Thousands of stores over the last few years have closed. Each day that goes by you hear of another large chain filing bankruptcy and closing their doors. The closures of large quantities of retail stores have caused the retail industry to be the largest contributor to job losses in recent years.
Technology and automation are also contributing to retail job losses. Grocery retailers have been adding self-checkouts to their locations. McDonald’s and Panera Bread have added tablets for customers to place orders without ever having to interact with an employee. Since January 2017, retail has lost more than 140,000 jobs.
This begs us to ask the question if retail jobs are declining at such a rapid rate, why are the unemployment numbers currently so low? The shift in online shopping didn’t just kill retail jobs, it skyrocketed other labor pools. There is a shortage of truck drivers in America. 68% of freight is moved on American highways and it is estimated that another 175,000 truck drivers will be needed by the year 2026. There are 81% more warehouse and distribution center jobs.
According to a study published by economist Michael Mandel, the creation of e-commerce jobs far exceeded the number of job losses due to brick-and-mortar store closures. In addition, it was concluded that fulfillment center jobs also pay up to 31% more than brick-and-mortar retail jobs.
For more information contact your Yuba City bankruptcy attorney at (530) 797-4402.
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