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Amazon's plan for 100,000 new jobs in the US may not exactly be what Trump was looking for
(President-elect Donald Trump.REUTERS/Carlos Barria)
Amazon is adding 100,000 new full-time jobs in the US over the next 18 months.
The announcement, which comes a month after Amazon CEO Jeff Bezos' meeting with President-elect Donald Trump, certainly plays nice with Trump's job-creation rhetoric and should help Amazon ease its tension with the president-elect, who frequently criticized the company during his campaign.
But the new jobs may not exactly be focused on the traditional labor-force jobs in areas like manufacturing or infrastructure, from which Trump drew his biggest support. Instead, most of them are likely to be highly skilled tech positions, based on Amazon's total number of job listings, analyzed by Baird Equity Research's Colin Sebastian.
As seen in the chart below, more than half of the current job listings are in "technology," for positions such as computer engineers or data scientists. Only a tiny fraction (about 5%) of those jobs are in fulfillment centers, where products are stored and packaged for delivery, and require fewer skills.
(Baird Equity Research)
To be clear, Amazon did say "many" of the 100,000 new jobs will be in its fulfillment centers, although it did not break down corporate versus fulfillment jobs. Also, Amazon has been significantly expanding its fulfillment network — it built 26 new facilities in 2016, up from 14 in 2015.
In a statement, Bezos stressed that a lot of the jobs would be in "local communities," not just Amazon's home turf of Seattle or Silicon Valley.
"These jobs are not just in our Seattle headquarters or in Silicon Valley — they're in our customer service network, fulfillment centers, and other facilities in local communities throughout the country," Bezos said.
Still, it's hard to imagine Amazon drastically shifting its job openings to fulfillment positions in such a short time, especially when a big chunk of its new investments are expected to be in building streaming content, growing overseas markets (India), and strengthening its Alexa/Echo ecosystem, as seen in this chart by Evercore's Ken Sena.
(Evercore)
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