Amazon may run out of Available Labor by 2024
Leaked Amazon memo says...
United States warehouses owned by Amazon are more than likely to run out of workers by 2024, according to an internal memo. The memo, leaked by Recode, cites research from 2021 that indicated a looming labor crisis for Amazon that would hit some areas faster than others.
The report estimated that Amazon would lose its labor supply in Arizona by the end of 2021 and in California by the end of 2022. The available pool of workers was calculated using income levels and proximity to current or planned Amazon facilities.
There were also urges made to Amazon to take steps to address the labor gap. Amazon however failed to raise wages and also failed to take the steps necessary to attract more new hires.
“If we continue business as usual, Amazon will deplete the available labor supply in the US network by 2024.”
The authors of the report said they suggested adding more automation in the warehouses.
“There are many draft documents written on many subjects across the company that is used to test assumptions and look at different possible scenarios but aren’t then escalated or used to make decisions. This was one of them. It doesn’t represent the actual situation, and we are continuing to hire well in Phoenix, the Inland Empire, and across the country."
Rena Lunak, Amazon’s director of global operations and field communications, said.
Amazon has invested in automation relentlessly. This has been indicated by the company’s acquisition of Kiva Systems in 2012. However, warehouse robots aren’t even capable of handling advanced fulfillment tasks that must then be done by human workers, according to an investigation by Wired.
The attrition rate record by Amazon is worse in Phoenix and the Inland Empire. People must also remember Amazon has to compete with stores such as Walmart and Target. They offer competitive wages in warehouses.
“We are hearing a lot of [Amazon] workers say, ‘I can just go across the street to Target or Walmart.’”
Sheheryar Kaoosji, co-executive director of Inland Empire’s Warehouse Worker Resource Center said.