Substantial Growth in FDI in 2021 With Highest Single Year Employment Creation Figures Ever

IDA Ireland has reported a record-breaking year for FDI employment with significantly higher levels of Foreign Direct Investment (FDI) in 2021 compared with 2020 and strong gains recorded in both gross and net employment.

Total employment in IDA client companies in Ireland now stands at 275,384, up 16,826 on 2020. 104 of the 249 investments won in 2021 were new name investments, a better than anticipated new name performance considering the ongoing restrictions due to the pandemic.

Growth in employment in 2021 brought the number of people employed in the FDI sector in Ireland to 275,384 from 258,558 last year.

Job losses remained at a relatively modest level relative to the size of the overall portfolio resulting in an extremely strong net employment growth this year – (16,826 net increase).

Growth in regions was particularly buoyant with 53% – 133 projects of the 249 investments won going to regional locations and employment growth recorded in every region of the country.

The 2021 figures show a pattern of sustained, robust growth in FDI investment and FDI-related employment over a continuous period of more than ten years.

This year’s results represent a strong start to IDA’s new 2021-2024 strategy, Driving Recovery and Sustainable Growth, which seeks to further enhance FDI’s place at the centre of a resilient, sustainable, and inclusive Irish economy.

An Tánaiste & Minister for Enterprise, Trade & Employment Leo Varadkar T.D. said: “These results are quite remarkable. In another year that was unfortunately mired by the pandemic, we saw the highest FDI employment creation figures we’ve ever had in a single year. There are now more people employed in our multinational sector than ever before – 275,384.

“I think this demonstrates the strength of our economy and the fortitude of our people. Despite immense challenges, we continue to maintain our reputation as an excellent place to invest. This is a testament to the talent of our workforce and our overall offering as a country.

“The success of our multinational sector has allowed us to sustain other areas of our economy that are struggling. FDI is central to our economic policy and it will continue to be a crucial part of our plan to rebuild after Covid.

“I’m particularly happy to see that over half of all investments won in 2021 went to locations outside of Dublin and had a really good spread nationwide. We will continue to focus on how we can attract investment across all parts of the country.”

Martin Shanahan, CEO of IDA Ireland said: “These 2021 results were achieved in an immensely challenging and volatile international environment. Ireland’s performance in attracting FDI to achieve these record results is a testament to the work of the Agency’s teams in Ireland and around the world, to the success of the client companies that we partner with on a daily basis and to the support of the Government.

“In 2021, there have been 249 investments compared to 246 investments in the same period last year – 104 of those investments are from new name investors coming to Ireland for the first time. The high level of new name companies and the significant investment in R&D demonstrate a level of future-proofing of FDI.

“FDI in Ireland has experienced staircase growth in employment terms for over a ten-year period linked to successful FDI strategies, however, we cannot rest on our laurels. Ireland has to do more to remain attractive in an extremely competitive global environment for FDI.

“If further steps are taken to improve Ireland’s attractiveness as a place to live and do business, the remarkable growth, resilience, and innovation exhibited by IDA’s client base over 2021 – and for much of the last 10+ years – provide an immensely valuable and nationally important platform for the future.”

There are now close to 1,700 multinational operations supported by IDA in Ireland accounting directly for 11% of the Irish workforce.

The benefit of their presence here in Ireland is obvious in the context of their contribution to employment but it goes far beyond their direct and indirect employment contribution.

Their impact nationally and regionally on public finances, regional development, global value chain integration, spin-off indigenous enterprise, innovation and more can be clearly seen in their expenditure in the Irish economy.

The most recent figures, from the forthcoming ABSEI results, which relate to 2020, show that payroll spend was €16.8bn, up 11%, combined spend of €11bn on materials and services sourced in Ireland up 6% to give a total spend in the Irish Economy of €27.9bn, up 8.8% on 2019. Exports were valued at €290.7bn, up 9.2% from 2019.

Capital investment amounted to €7.5bn, up 3.7% from 2019, with the largest spend once again coming from the Life Sciences and Technology sectors.