Amazon, in a blog post, touts the benefits its business brings to the United States economy. The blog post comes two days after the United States Federal Trade Commission filed an antitrust lawsuit against Amazon about which market observers have begun to speculate.
In a blog post by Holly Sullivan, Amazon vice vice president, worldwide economic development, she noted that her job largely consists of helping explain to communities and their leaders how Amazon’s investments can bring additional fiscal vibrancy and local opportunity, pointed out that the Progressive Policy Institute in 2022 recognized Amazon as the top investor in the U.S. economy. She said Amazon worked with external consultants at Keystone Strategy and internal economists to review investments the company made in the U.S. over the past 12 years and broke them down into seven points Sullivan reviewed in the blog, saying:
- Since 2010, Amazon has contributed more than $880 billion to the U.S. gross domestic product, adding more than $240 billion in 2022 alone. Investments made included those in infrastructure and employee compensation, which helped to expand local economies and support an additional two million associated jobs in construction, healthcare, retail and professional services.
- Amazon is the second largest private employer in the U.S. with almost a million U.S. staffers and has become the largest job creator in the country, with customer fulfillment and transportation pay averaging over $20.50 per hour. Walmart provides employees with benefits including healthcare and 401(k) access, along with a wide range of company-funded upskilling opportunities such as prepaid college tuition for logistics employees.
- Two of every five U.S. jobs Amazon has created over the past five years were in small-town America. Affiliated economists, using U.S. census population information combined with the company’s localized hiring figures, found that more than 40% of all jobs Amazon created in the last five years were launched in small towns whether located at a fulfillment center, delivery station, air hub or retail store.
- Communities where Amazon invests see an average increase of 900 local retail jobs in addition to the direct jobs that the company brings to town. When Amazon opens a fulfillment center to prepare customer orders, it creates 3,000 local jobs.
- Close to half of the people Amazon hired for logistics jobs were previously unemployed, which means the company has created opportunities for people who otherwise might have suffered stalled careers.
- More than 100,000 U.S. Amazon employees have built their careers, job qualifications and earning power via Amazon Career Choice, a program that promotes success through education and learning new skills.
- Half a million small and medium-sized businesses sell on Amazon, building operations and supporting an estimated 1.5 million additional jobs across the country.
Meanwhile, with regard to the FTC suit against Amazon, Morningstar Equity analyst Dan Romanoff stated in a research report his initial reading of the lawsuit suggests a settlement as the most likely outcome, with a fine attached and some minor changes to business practices agreed upon rather than any breakup of the company.
