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A complete 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 appear 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 true.

Organisations are springing up at a great rate taking advantage of the large 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 development of existing firms who have realised the online opportunities and have expanded 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 situations created and developed by the firm from this thrilling new source. On top of the sales processing or customer service positions there will also be increases in admin roles such as personnel, finance departments and of course in production areas. As demand on each particular organisation increases due to their successful internet promotion virtually all areas of the company will need to grow. The company will also need to handle larger distribution, banking and accountancy requirements meaning that there will be increased demand on outside organizations servicing the growing organisation.

However at some point, potentially after the exhilaration brought on by the dramatic increase in sales has calmed, the business will need to reevaluate all of it’s sections. It may be that this takes a while to occur, however in the most astute companies they may already be anticipating downturns in other sales areas. The firm 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 operating in those areas.

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

Of course, it’s not at all certain that there will be a rise in job seekers as a result of these trends. History from the beginning of the industrial revolution teaches us that these types of changes make society as a whole richer over time. A percentage of the workers losing their jobs will set up new micro businesses, and taking advantage of the trends which caused their owners to lose their jobs in the first place, enough of these companies 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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