Small Business Startup News

Study: For Every Two Jobs Created By Walmart, Three Local Ones Disappear

Written by Jenna Weiner
Published: 5/4/2011

Walmart does not create jobs in communities, new survey reveals.

Mega-retailer Walmart is no stranger to controversy in small business news, as its relations with the sector have been especially fraught of late.

Impact of Walmart on Local Economies

Walmart has tried unsuccessfully to enter the New York City marketplace twice, even producing its own sponsored survey that reported more than half of small businesses favored the move (it was quickly contradicted by a number of other polls).

Now, a provisional study, called "The Effects of Walmart on Local Labor Markets," by researchers David Neumark, Junfu Zhang and Stephen Ciccarella has found that Walmart's claims that it creates jobs in communities is false, the New York Daily News reports. In reality, for every two jobs Walmart introduces, three local jobs are destroyed.

"With due respect to Walmart, this is not the kind of economic development neighborhood small businesses need," the source explains. "Everywhere you look in New York, mom-and-pop shops help anchor our busiest and most vibrant business districts."

Unsurprisingly, past hearings by the city of New York to consider opening up to Walmart have resulted in heated protests and long petitions.

Share this article

 


About Our Breaking Entrepreneurial News

If you liked this small business news article, you can find other breaking news for entrepreneurs on our site. We cover important news stories for entrepreneurs. In addition to breaking news for entrepreneurs, we also have tons of helpful articles that cover common small business challenges like writing a business plan, hiring and firing employees, getting publicity and much more.


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary