The Impact of E-Commerce on the US Labour Market - Research Proposal Example

The value of total E-Commerce transactions in the major economic sectors1 in the US went up for approximately 78.7% between 2000 and 20042as Manufactures and Merchant Wholesaler depended the greatest on E-Commerce whereas Retailers increased their use of E-Commerce at the highest rapidity. In 2004, E-Commerce grew faster than total economic activity in three of the four major economic sectors, which indicated E-Commerce has been gradually changing the way organizations operate, as well as the consumers’ shopping habits.

Looking ahead, it is generally expected that E-Commerce will gain a substantial share of trade between market participants, although it is difficult, at least at this stage, to commensurate the exact extent of it.E-Commerce has raised numerous questions in different areas amongst economists and policymakers; its “Model”, “Infrastructures”, “Activities”, “Trend” and “Policies and Regulations” have been the focuses thus far. However, it is the “Employment Effect” of the innovation that demands the most attention for continuing its advance in development.

There are fascinating reasons for which assessing the employment effect of E-Commerce is invaluable. Firstly, E-Commerce diffuses almost into all areas in an economy, and the employment effect in one industry is likely to interact with another. The speedy expansion of E-Commerce might also become a new influential factor for economic growth and the labor market. Moreover, the leading role of the US in E-Commerce might raise fears in other countries for losing out their talent labors and their own competitiveness due to the global character of the revolution.

Furthermore, the impact of E-Commerce on different industries or occupations is likely to be different; downward pressure in retail salespersons is perhaps more than offset by upward.