"If you build it, they will come," seems to be Amazon's mantra when it comes to building new warehouses — whenever the company opens up a new one in a fresh city, it touts all the jobs that come with it. However, a new study challenges those claims.
When Amazon announces its plan to establish a new warehouse, city officials praise the decision, or rather, the company's promise to fill the jobs locally. In fact, each new Amazon warehouse tends to employ between 500 and 1,500 people.
However, according a study published by the Economic Policy Institute, counties that house new Amazon fulfillment centers — the company's name for its warehouses — don't actually experience growth in the number of total jobs during the two years following the centers' openings.
"When Amazon opens a new fulfillment center, the host county gains roughly 30 percent more warehousing and storage jobs but no new net jobs overall, as the jobs created in warehousing and storage are likely offset by job losses in other industries," the study authors conclude.
The authors add the mayors and state officials should avoid offering public incentive dollars or tax breaks to Amazon in exchange for its promised warehouse.
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