Amazon has announced new research conducted by Oxford Economics, which indicates that large company investments can stimulate business growth and reduce violent crime rates in U.S. counties. The study used an Amazon facility in Wilmington, Delaware, as a case study.
A recent study by Oxford Economics titled "The Socioeconomic Impacts of Employer Investments on Local Communities" outlines several benefits associated with large company investments. According to the report, new business formation increased by 3.6%, unemployment decreased by 0.4%, and labor-force participation rose by 2.1% in counties receiving such investments. Additionally, these investments resulted in nearly a 10% reduction in violent crime, a 1.4% increase in wages, and a 1.3 percentage point rise in private insurance coverage, indicating improvements in community well-being.
According to the Oxford Economics report, Amazon's fulfillment center in Wilmington revitalized a former General Motors plant site, creating 3,000 jobs with higher seasonal numbers and offering competitive wages and benefits. The center was part of a $4.5 million state grant aimed at providing significant local employment opportunities through outreach programs and job fairs to support community members. Amazon's Career Choice program further invested in workforce upskilling, helping employees pursue higher education. With starting wages of $18 per hour and comprehensive benefits, the facility has become a key economic driver for both individuals and the broader community.
"This case study highlighted how the entry of a large employer—in this case through an Amazon fulfillment center—revived a shuttered work location and created quality employment opportunities for local workers," the report says.
Amazon offers various services including online and in-person shopping, delivery of fresh produce, media distribution, devices like Alexa and Fire TV, cloud solutions through Amazon Web Services (AWS), logistics and customer service operations, as well as entertainment platforms such as Amazon Originals, Prime Video, and Audible.
