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A delivery worker for Amazon Prime wears a mask and gloves on her route in Los Angeles. Chris Delmas/AFP via Getty Images
COVID-19

Amazon continues hiring spree to meet demand from pandemic

Meghan McCarty Carino Sep 14, 2020
A delivery worker for Amazon Prime wears a mask and gloves on her route in Los Angeles. Chris Delmas/AFP via Getty Images

Earlier this year, Amazon hired about 175,000 additional workers as stay-at-home orders sent shoppers online. Now the e-commerce giant is seeking to hire 100,000 more warehouse workers in the United States and Canada, and more than 30,000 corporate tech workers. 

Those highly paid positions will be remote for now, with several thousand of them spread across the country near planned satellite offices in cities from San Diego to Phoenix, Dallas, Detroit and New York. The hiring plan strikes a contrast to the search for one big second headquarters, called HQ2, several years ago.

When Amazon announced its HQ2 search in late 2017, it turned into a battle royal between cities competing for tens of thousands of good-paying tech jobs.

But all the slick videos and billions of dollars in incentives weren’t enough to stop Amazon from choosing the rather predictable New York and Washington, D.C., areas, said Greg LeRoy at Good Jobs First.

“You know [it was] the biggest trophy hunt ever in U.S. economic development history,” he said. “So it’s fascinating to see this backflip now.”

With the pandemic sending most tech workers home, Amazon and other large tech companies may finally be shifting their working model, said Steven Pedigo, a professor at the LBJ School of Public Affairs at the University of Texas at Austin.

“Rather than all of these workers being concentrated in, say, this new HQ2 facility in Washington, D.C., or in Seattle, maybe you’re more open to these sort of remote hubs,” he said. “For many second-tier cities, that’s probably a good thing.”

He said it’s easier for smaller cities to sell themselves to individual remote workers with affordable housing or charming downtowns than it is to meet the infrastructure demands for a big company headquarters. 

Richard Florida, an urban studies professor at the University of Toronto and author of “The Rise of the Creative Class,” said tech companies still consider major hubs like Silicon Valley as key to innovation and growth.

“I think that you’re not going to see a big departure from the pattern of corporate headquarters location that we’ve seen,” he said. “But you will see some adaptation and some tweaking at the margin,” like more satellite offices outside city centers that allow workers to be closer to affordable housing but within easy reach of the big cities he said are the engine of big ideas.

COVID-19 Economy FAQs

What are the details of President Joe Biden’s coronavirus relief plan?

The $1.9 trillion plan would aim to speed up the vaccine rollout and provide financial help to individuals, states and local governments and businesses. Called the “American Rescue Plan,” the legislative proposal would meet Biden’s goal of administering 100 million vaccines by the 100th day of his administration, while advancing his objective of reopening most schools by the spring. It would also include $1,400 checks for most Americans. Get the rest of the specifics here.

What kind of help can small businesses get right now?

A new round of Paycheck Protection Program loans recently became available for pandemic-ravaged businesses. These loans don’t have to be paid back if rules are met. Right now, loans are open for first-time applicants. And the application has to go through community banking organizations — no big banks, for now, at least. This rollout is designed to help business owners who couldn’t get a PPP loan before.

What does the hiring situation in the U.S. look like as we enter the new year?

New data on job openings and postings provide a glimpse of what to expect in the job market in the coming weeks and months. This time of year typically sees a spike in hiring and job-search activity, says Jill Chapman with Insperity, a recruiting services firm. But that kind of optimistic planning for the future isn’t really the vibe these days. Job postings have been lagging on the job search site Indeed. Listings were down about 11% in December compared to a year earlier.

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