Follow this blog:
RSS

Study: Internet has created more than three million jobs

By | July 1, 2009, 7:39 PM PDT

The Internet is a huge job generator for the economy. John Quelch and his team recently crunched the numbers in a new study for the Interactive Advertising Bureau, and calculates the Internet economy to be in the hundreds of billions of dollars in the United States alone.

And, mind you, this only covers the advertising-supported segment of the Internet, and does not cover the immense gains seen in terms of corporate productivity, ability to enter new markets, or through online channel engagements and sales among more “traditional” enterprises. I’d also like to see a study on jobs and income generated as a result of businesses moving processes online, but this is a good start to illustrate the huge impact of this new medium. (IAB release here, full report here.)

Quelch estimates “the Internet employs 1.2 million people directly to conduct advertising and commerce, build and maintain the infrastructure, and facilitate its use.” In addition, each Internet job supports approximately 1.54 additional jobs elsewhere in the economy, for a total of 3.05 million, or roughly two percent, of employed Americans. Quelch puts the dollar value of their wages at about $300 billion, or around two percent of U.S. GDP.

Quelch’s team included a range of Internet-connected industries in their estimates, including Internet Service Providers, hardware and network providers, software companies, and consulting companies.

Quelch puts the direct economic value to the rest of the U. S. economy is estimated at $175 billion — up to $444 billion when considering secondary effects. Again, this is just the advertising-supported Internet.

Start your week smarter with our weekly e-mail newsletter. It's your cheat sheet for good ideas. Get it.

Joe McKendrick

About Joe McKendrick

Joe McKendrick is a contributing editor for SmartPlanet.

Joe McKendrick

Joe McKendrick

Contributing Editor, Business

Joe McKendrick is an independent analyst who tracks the impact of information technology on management and markets. He is the author of the SOA Manifesto and has written for Forbes, ZDNet and Database Trends & Applications. He holds a degree from Temple University. He is based in Pennsylvania.

Follow him on Twitter.

Joe McKendrick

Joe McKendrick

Joe McKendrick is an independent consultant and editor. Joe has performed project work for the following companies in the IT marketspace: IBM, Systinet/HP, Teradata. He has performed project work for the following organizations in partnership with Unisphere Research (Unisphere Media): IBM, Oracle Corp., International Oracle Users Group, Oracle Applications Users Group, Professional Association for SQL Server, International DB2 Users Group, International Sybase Users Group.

He writes for SmartPlanet and is not an employee of CBS.

4
Comments

Join the conversation!

Follow via:
RSS
+1 Vote
+ -
"Video Email "The New Paradigm"
Video Email is one of the newest and fastest growing Internet Based
Companys.You can use Video Email to promote your business. A new
company called Globalpreneurs has a set of services for $29.95 a
month that include Video Email, Video Conferencing-Up to 12 People at
once live in real time, and Video Presentations where 250 people can
watch you present your product online. The Video Email service can be
an email up to 60 minutes in length so you can show off the group any
way you desire. You can produce a video and upload it to the
Globalprenuers servers and send it to as many client's as you wish!
Just think, no more traveling to give a DVD to a client just send a video
email. The best part about this service is that you can make money by
telling others about it. My partner and I are putting on live presentations
via the web showing the power and depth of the Video Email System so
just go to www.PhillipRogersLive.com and check for the next
presentation and 5 minutes before it starts register and watch it live in
action. If you are interested in getting started now go to
www.MyGlobalHub.com/chuckwatson and fill out the forms on our
secure servers and check the box at the bottom that says "Yes I want
to Be a Distributor At No Extra Charge" and start promoting your
Business or Organization and make money while doing it. This is the
future of Internet communication so get onboard now!!!
Posted by chuckwatson
2nd Jul 2009
+1 Vote
+ -
RE: Study: Internet has created more than three million jobs
i need a job tell me what to do?
Posted by raja sam
30th Sep 2010
+1 Vote
+ -
RE: Facilities versus ITq
We have been living in Montana for the past 5 years and I am not supri sexshop to find it #3 on the "worst" list. Considering a sexy shopmove to Idaho to escapthe high cost of living a low income in MT. There may not be a sales tax here but they get you if you own property!
Posted by filhomarques
23rd Jul
+1 Vote
+ -
RE: Online Makeovers for Baby Boomers
We have been living in Montana for the past 5 years and I am not supri sexshop to find it #3 on the "worst" list. Considering a sexy shopmove to Idaho to escapthe high cost of living a low income in MT. There may not be a sales tax here but they get you if you own property!
Posted by filhomarques
23rd Jul
Join the conversation
Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]

Join the SmartPlanet Community and join the conversation! Signing-up is free and quick, Do it now, we want to hear your opinion.