Amazon to add 100,000 jobs in next 18 months

Amazon to add 100,000 jobs in next 18 months

Amazon, the world’s leading online retailer, announcement on Thursday that it would hire as many as 100,000 new employees during the next 18 months.

The Baltimore warehouse of the company and dozens of other fulfillment centers across the nation stand to be among the biggest beneficiaries as employees affected by the crumbling of bricks-and-mortar retail centers will get jobs.

Just 15 miles away in the suburbs, Owings Mills Mall has turned into a big pile of rubble, and Macy’s and J. C. Penney have closed within months of each other.

The notable contrast between the two scenes is a good example of “creative destruction,” which can be described as the inevitable process in which new industries rise and replace traditional industries.

However, Harvard professor Lawrence Katz cautioned, “There are huge benefits to consumers from Amazon. But the workers they are hiring aren’t the same ones being laid off.”

Katz added that the economy as a whole might be gaining from creative destruction, but several resources are not put into training displaced workers, which causes a real problem.

Since New Year’s Day, traditional retail industry has suffered big blows. Last week, Macy’s announced it s decision to eliminate 10,000 jobs, while the Limited declared that it would close all 250 of its stores, throwing more than 4,000 people out of jobs.