Stories

Automation is raising pay before it cuts jobs

Boxed's Union City warehouse. Photo: Christopher Matthews / Axios

UNION CITY, NJ — Visit Boxed headquarters, and you'll find lighthearted employees working right alongside an automated picking machine that retrieves items without human help, two miles of conveyor belts that move items faster than people can, and other robotic devices. The online retailer, a competitor of Costco and Sam's Club, has attracted years of fawning publicity for carrying out all this automation at its warehouses without laying off a single employee. Plus, it is even raising salaries.

The cruel twist: Boxed is already shrinking the number of added workers required for expansion — one executive said that to triple business at the warehouse, he'll only need to hire 33% more labor. That aligns with an axiom of automation — that jobs offering the best chance of rising pay are usually in industries that are growing and adding labor-saving technologies at the same time, before the number of jobs eventually declines.