According to data collated from the ‘Department for International Trade’ report (first published 30th August 2016) by Gov.uk Foreign direct investment, (FDI) is having a heavy influence on the UK job market. The data dictates that 2,213 FDI inward investment projects were secured in 2015 to 2016, altogether generating 116,000 jobs, the second highest number on record.
In the same time period, almost 1,600 new jobs were created per week by FDI and, since 2010, nearly 390,000 new jobs have subsequently been created here in the UK. The USA remains the UK’s largest source of inward investment, providing 570 projects. This was followed by China (including Hong Kong) with 156 and India with 140.
In terms of industries, the financial and professional services sector is the number one industry benefiting from foreign investment, with job numbers increasing by 20 per cent in the last year. In fact, this sector has previously attracted far more investment than any other, with overseas companies inputting over 100 billion pounds into UK financial services over the past decade. The advanced manufacturing industry follows closely behind, with a 13% job increase, pipping creative industries and ICT (with a 7% increase) to the number two slot.
Darren Best, Savoy Stewart Director said, “there’s no doubt that we are in a dubious time: a lot is set to change in 2017, and the free fall we are all experiencing post-Brexit is certainly chaotic, particularly in terms of business. However, from analysing recent data, I am confident the UK will remain a key market – just as it ever was. Our ties with investors all over the world remain interwoven and strong; we should embrace change, reaffirm our partnerships and focus on all that we have to offer.”
The energy and infrastructure, life sciences and electronics and communications industries have collectively seen a decrease in job opportunities over the past year, life sciences most affected with a 32 per cent drop. Yet, each have maintained a positive increase in the amount of FDI projects forming.
Overall, the report claimed 41 per cent of companies expect to grow their workforce’s this year and, alongside the UK’s strong FDI performance, indicates that the UK will manage to maintain its position as one of the top countries to invest in.
