A Whole New Sector Of Opportunity Is Opening Up Around Internet Business But Does It Offer Additional Jobs Or Replace Others Currently In A More Conventional Setting

November 12th, 2009 | by Sydney |

A totally new area of opportunity is developing around internet business but does it offer extra jobs or replace others in a more conventional setting? Reports continue to circulate about the development in the Online Jobs market and how it will have a positive impact on the number of unemployed in the UK over the next couple of years. On the face of it this would seem to be correct.

Companies are springing up at a great rate taking advantage of the huge demand in online shopping from individual items for personal use such as presents, household products, fashion and books to the business to business type trade where larger scale trading is conducted. We can also see the expansion of existing firms who have realised the online opportunities and have enlarged their offering, moving into online sales and therefore widening their audience hugely. Both of these situations will mean an rise in employee numbers whether they Work From Home or in the office or factory.

Certainly in the short term this will cut down the jobless figures as existing roles are maintained and people are recruited into the new roles created and developed by the business from this exciting new source. On top of the sales processing or customer service jobs there will also be increases in admin roles such as human resources, finance departments and of course in manufacturing areas. As demand on each particular organisation increases due to their successful internet promotion virtually all areas of the business will need to expand. The company will also need to cope with larger distribution, banking and accountancy requirements meaning that there will be increased demand on peripheral organizations servicing the growing organisation.

However at some point, potentially after the exhilaration brought on by the remarkable increase in sales has waned, the business will need to reevaluate all of it’s elements. It may be that this takes a while to come about, however in the most perceptive companies they may already be expecting reductions in other sales areas. The business may at that point see that areas such as high street sales have been negatively affected by the move towards internet sales and it may be decided that it is no longer worth working in those areas.

So eventually we could see simply a shift in the sales arena, from the more conventional sorts such as high street shops and catalogue chains to the newer and more successful Internet Business. Jobs will go in the old sectors as high street shop profits plumet and organizations see a much better return on investment from their e-commerce activities. The workforce in these reducing markets will reduce and we could end up with a jobless stat that is larger than the current one.

Of course, it’s not at all sure that there will be a rise in joblessness as a result of these trends. History from the dawn of the industrial revolution teaches us that these sorts of developments make society as a whole richer over time. A proportion of the employees losing their jobs will start up new micro businesses, and taking advantage of the changes which caused their owners to lose their jobs in the first place, enough of these businesses will develop into important employers in their own right. Thereby employing those whose jobs were lost at the beginning of the trend.

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