Media clips
-
After analyzing data for counties in 25 states containing Amazon fulfillment centers, the Economic Policy Institute (EPI) found that within two years the centers lead to a 30% increase in warehouse and storage employment in the surrounding county. But the analysis also found no increase in overall employment in the county and, in some cases, the data suggested a reduction in overall employment. Amazon has received over $1bn in state and local subsidies to open fulfillment centers across the US. The report questions the efficacy of such tax breaks if they do not contribute to a net growth in jobs. “If policymakers instead invested in public services – particularly in early-childhood education and infrastructure – that would be a much stronger recipe for long-term economic development, rather than giving tax breaks to national employers like Amazon,” said EPI economist Ben Zipperer. (whole story)
The Guardian February 2, 2018 -
Amazon has been astoundingly successful in getting state and local governments to pay for its worksites. The online retail giant has staff dedicated to securing local tax incentives, abatements and subsidies for placing its warehouses (dubbed “fulfillment centers”), totaling more than $1.1 billion since 2000. And for months, cities have engaged in an even more unseemly spectacle: promising billions to attract Amazon’s second headquarters. The losing bids will likely set the ransom rate Amazon can demand to locate its fulfillment centers in the future. Until now, nobody has looked specifically at whether these giveaways are really worth the cost. A report from the Economic Policy Institute released on Thursday says emphatically that they’re not. (whole story)
In These Times February 2, 2018 -
In Amazon’s quest to control same-day delivery, its network of almost 100 fulfillment centers—where products are sorted, packaged, and shipped—has now spread across 25 states. Lured by the prospect of hundreds or even thousands of new full-time warehouse jobs with competitive pay and benefits, local government officials crawl over each other to land the world’s largest online retailer in their backyard. But according to a new report by the Economic Policy Institute (EPI), many of these policymakers might really be selling their constituents short. The report found that, on average, counties that are home to Amazon fulfillment centers did not see any overall job growth in the years following warehouse openings. While there was a sizeable increase in warehouse jobs in the counties, private-sector employment remained largely flat. The report’s author suggest this could be for two reasons: Either fulfillment centers are causing other jobs to de displaced, or growth in warehousing jobs is too limited to make a notable difference. (whole story)
The American Prospect February 2, 2018 -
While the opening of an Amazon warehouse increases warehousing employment at the county level by more than 30% after two years, private-sector employment across all industries doesn’t budge, according to a reported released Thursday by the left-leaning non-profit think tank Economic Policy Institute. “Our findings of the lack of overall job growth from opening an Amazon fulfillment centers suggest that some sort of employment displacement is taking place, or that the growth in warehousing jobs is too limited to spill over into broad-based employment gains for the overall local economy,” the report said. (whole story)
Market Watch February 2, 2018 -
Amazon’s promise of jobs and economic boom may come up short, according to analysis from the Economic Policy Institute (EPI). Luring big economic concessions from cities in order to move a headline item there is a tried-and-true formula long used by the National Football League (NFL) to entice cities to host the Super Bowl. Economists have long scoffed at the estimates bandied about by hired-gun research firms that suggest the NFL’s big game will generate an economic windfall for cities in the hundreds of millions of dollars. (This year’s estimate for the Super Bowl’s economic impact for Minneapolis is $338 million.) Similarly, analysts at the Economic Policy Institute (EPI) say Amazon’s claims that it’s new headquarters will bring $5 billion worth of prosperity and 50,000 jobs should be taken by local lawmakers with a grain of salt.
Yahoo Finance February 2, 2018 -
The nonprofit Good Jobs First has tabulated that from 2005 to 2016, counties, cities, and states gave up a total of at least $1 billion in tax revenue to attract the massive warehouses where Amazon sorts and ships goods to customers with the hope of creating more jobs and revving up their local economies. But according to a new study, they may not be getting much of a job boost in return. Examining job growth in the two years following the opening of 54 fulfillment centers between 2001 and 2015, a pair of economists from the left-leaning Economic Policy Institute found that while warehousing employment increased by about 30%, Amazon’s presence generated no net employment gains in the 34 counties where the facilities are located. (EPI cited throughout + Ben quoted)
CNN Money February 2, 2018 -
But a new report from the Economic Policy Center finds that this entire strategy has a serious flaw: no new jobs. The opening of an Amazon fulfillment center does not lead to an increase in county-wide employment. Two years after an Amazon fulfillment center opens in a county, overall private-sector employment in the county has not increased. It is possible that the jobs created in the warehousing and storage sector are offset by job losses in other industries, or that the employment growth generated by Amazon is too small to meaningfully detect in the data. This finding of no effect is also robust to a series of statistical controls. In fact, economists found that some counties actually saw small reductions in overall employment in years after Amazon warehouses opened there. At the very least, it is safe to say that offering corporate welfare to attract these facilities is not a good use of public funds. “Our findings of the lack of overall job growth from opening an Amazon fulfillment center suggest that some sort of employment displacement is taking place, or that the growth in warehousing jobs is too limited to spill over into broad-based employment gains for the overall local economy,” the report says. “This is in keeping with a robust body of evidence indicating that reducing public services to provide tax cuts does not actually spur economic growth and job creation.”
Splinter News February 2, 2018 -
Amazon is now contacting its shortlist of places for its next headquarters. The company has told applicants who didn’t make the cut that they’ll be considered for future investments by the company.
But a new study from the Economic Policy Institute says places that have already received Amazon investments in warehouses don’t get the growth they bargained for. All kinds of places have promised Amazon tax incentives in exchange for jobs, but the Economic Policy Institute says it doesn’t work. (whole story)
KUOW February 2, 2018 -
How great of an effect a tech company can have on a new town comes down to one thing: jobs. And not just how many jobs that company creates, but how many other businesses are prompted to hire from that town because that new tech company set up shop. For many heartland cities, the latest tech company coming to town is Amazon, thanks to its massive fulfillment center operation. But, a new study from the left-leaning Economic Policy Institute finds that Amazon fulfillment centers aren’t creating many new jobs. (whole story
Venture Beat February 2, 2018 -
A report released Thursday by the left-leaning Economic Policy Institute found that Amazon fulfillment centers do not boost overall employment in the counties where they open.
Instead, the study of 95 Amazon fulfillment centers, spread over 25 states, determined that while there was an overall net 30 percent gain in warehouse jobs, there was a limited, if any, overall increase in the overall workforce. The report found that Amazon received more than $1 billion in state and local incentives toward those centers. In most instances, the incentives are performance based tax credits that may take years to receive. The authors said that the new Amazon jobs are offset by losses in other industries, or that the employment growth generated by Amazon is simply too small to be meaningfully detected in the data. The authors recommend that local and state officials dedicate potential incentive funds toward “public service, particularly in early-childhood education and infrastructure, that are proven to spur long-term economic development.”
Winston-Salem Journal February 2, 2018