Ahead of President Barack Obama's Tennessee warehouse visit, online retail giant Amazon announced plans Monday to add 7,000 jobs across the U.S. in an effort to meet growth demands.
The company will create 5,000 full-time jobs in fulfillment centers across the country, as well as 2,000 full-time, part-time, and seasonal customer service jobs, ABC News reported.
"We're hiring more than 5,000 people to join our team and help us continue to innovate and serve our customers," Amazon's Vice President of Worldwide Operations Dave Clark said in a statement.
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The new Amazon jobs are spurred but the company's plans for growth. Its new grocery delivery service, AmazonFresh, recently expanded from Seattle to Los Angeles, and its same-day delivery program Local Express is also gaining steam with customers.
"As they add categories, they add revenue and jobs. Amazon methodically goes after categories one after another and applies low price, large selection and convenience," Patrick Dalessandro, director of client strategy at JGA, a brand strategy and retail design firm, told USA Today.
Amazon said the 5,000 new positions will pay 30 percent more than traditional retail jobs, but some industry experts say that isn’t anything special because "the average U.S. warehouse worker, at Amazon or anywhere else, earns a third more than a retail worker," according to CNNMoney
. The median hourly wage of a warehouse worker is $13.50, or about 30 percent more than the average U.S. retail worker's pay of $10.09, according to the Department of Labor.
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Obama spoke at an Amazon facility in Chattanooga, Tenn., Tuesday and proposed a "grand bargain" with Congressional Republicans
, involving a cut in corporate tax rates in exchange for more spending on programs for "middle class jobs," as he put it.
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