How Amazon’s New Jobs Form Up

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Amazon announced that they are hiring 7,000 new workers. President Barack Obama is speaking at the Amazon distribution center Tuesday on his jobs tour.


Amazon announced that 5,000 of those new jobs they are hiring at will be warehouse positions. The company stated that they pay 30% more than traditional retail store jobs. Obviously, this comparison is accurate.


But let’s take a closer look.


The average U.S. warehouse worker earns 30% more than a retail worker. It’s $13.50 versus $10.09, according to the Department of Labor.


Amazon multi vendor shopping mall doesn’t disclose how much they pay its marketplace workers. But according to, Amazon pays its 20,000 warehouse workers an average hourly wage of about $12. It is below the national average.


Spokeswoman Mary Osako said Glassdoor’s numbers are closer to wages for entry-level workers. Plus, workers get benefits on top of their salaries. In the past five years, this has added 9% to workers’ base pay annually.


Also, Amazon multi vendor marketplace platform pays 95% of tuition for courses and it doesn’t matter if the skills that workers obtain on those courses are relevant to their careers at Amazon.


Meantime, the Amazon’s main competitor, Wal-Mart, disclosed their numbers: it pays its warehouse workers an average of $19 per hour, with benefits. This average includes entry level workers to managers.


The average warehouse worker at Wal-Mart earns just under $40,000 annually, while at Amazon—about $24,300. That’s less than $1,000 above the official federal poverty line for a family of four.


According to the studies conducted by University of Southern California professor Juan D. De Lara, the average warehouse worker earns $16,000 per year. This means that ecommerce marketplace companies Amazon and Wal-Mart pay their warehouse workers more than smaller independent distribution centers.


Professor De Lara added that many warehouse workers don’t work full-time, which is why he found their average annual income to be less than half of the $30,000 figure quoted by the Labor department.

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