Amazon Deal Could Create 59,000 Virginia Jobs

Amazon, Inc.’s $2.5 billion investment in major new East Coast headquarters in Arlington/Alexandria will generate $14.2 billion in economic activity over the next 12 years, projects a new study by Richmond-based Chmura Economics & Analytics. While Amazon has committed to hiring 25,000 employees, indirect effects of the investment will create more than 59,000 jobs.

“The entire state of Virginia will benefit from Amazon’s decision to locate part of its second headquarters in Northern Virginia,” said Christine Chmura, the firm’s CEO and chief economist. The Richmond Times-Dispatch has the story here.

Chmura estimates the project will generate $1.83 billion in state income and sales tax revenues from 2019 through 2030, when annual collections are forecast to reach $346.7 million, reports the RTD based upon Chmura’s soon-to-be-published column in the newspaper’s Metro Business section.

The analysis does not include the promised $1.1 billion in new state spending at higher education institutions. The RTD provided no numbers (presumably because the Chmura report did not have them) on how many jobs would percolate down to the Rest of Virginia.

Update: You can find a copy of the Chmura report here. The RTD and Washington Post articles were either unclear or misleading. The $14.2 billion in economic activity by 2030 is for that year only, not a cumulative figure, as I suggested above. States the report:

Combining capital expenditures and the MCH’s operations, it is estimated that
the total economic impact (direct, indirect, and induced) of the Amazon [Major Corporate Headquarters] will be $14.2 billion in Virginia, supporting 59,308 jobs in 2030, when the MCH reaches its full capacity. The total state tax revenue is estimated to be $346.7 million in 2030 and $1.83 billion from 2019 through 2030.

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2 responses to “Amazon Deal Could Create 59,000 Virginia Jobs

  1. re: what about RoVa?

    One of the most important things than can be done by RoVa is to invest in their schools to provide the best education they can to their kids so their kids can go to where the jobs are and be qualified to get them.

    Otherwise, we’re going to create another generation of people who are basically unemployable except for the most basic and minimal jobs that actually will require Virginia to pony up even more in entitlements like MedicAid, TANF and Section 8 housing.

    When it is said that Amazon “will create” jobs – they’re NOT talking about high paying jobs for the under-educated – whether in NoVa or RoVa.

    The one thing that really defines this country is the OPPORTUNITY of each child to obtain an education and from that a self-reliant life that allows them to pay their fair share of taxes and not expect others to “help” them.

    Yes.. I know this is blasphemous talk for some who lean left – but the simple reality is – the most important “help” that people can receive – is a decent education upon which to take care of ones-self and their family.

    Amazon can’t fix RoVa and again, I ask – if Conservatives and especially those Conservatives who live in RoVa were in charge of economic development – would they have turned down Amazon? I say that more than a few of them would have and that really brings into question what their vision for economic development is for Virginia – including RoVa.

  2. My guess is that more likely Richmond-based Chmura Economics & Analytics understates the growth potential here, but no knows, or can really predict in these cases. That truth is embedded in the nature of how these transaction grow into the future, too many known and unknown variables are at play here, endlessly so, many of them shrouded acts of God or akin to them.

    What I am interested in, and what would really be meaningful, is a cutting edge study of how you rebuild and remodel a vast city throughout Northern Virginia, sparked by this deal. Given the power of today’s Analytics this is not only doable, it would be grossly irresponsible not to undertake this task seriously right now.

    I cannot imagine that this task is not now going on right now, given the obvious brainpower and talent shown to be working hard on this project.

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