Jobs boost as UK attracts increased overseas investment
The figures announced by Business Secretary Vince Cable indicate that companies investing in the UK are continuing to succeed, laying the foundations…
The figures announced by Business Secretary Vince Cable indicate that companies investing in the UK are continuing to succeed, laying the foundations for growth across the country. Inward investment created 52,741 new jobs, a 26% increase on 2010/11, and secured 59,918 existing jobs, an increase of 14%.
The UK continues to attract more foreign direct investment (FDI) than any other European country, generating more than a thousand new jobs each week.
Jobs have increased across a range of sectors, including advanced engineering, life sciences, environmental technologies and the creative industries. A 22 per cent rise in manufacturing projects shows the crucial role of inward investment in helping rebalance the economy
Business Secretary Vince Cable said:
“These figures are a clear demonstration that international investors have confidence in the UK. Despite a difficult international economic climate, more jobs have been_ _created and secured than in any year for over a decade.
“Openness to investment is crucial for sustainable economic growth, and the Government has worked hard to ensure UK remains attractive to companies around the globe. A reduced and simplified tax burden and a clear headed approach to rebalancing the economy have helped maintain our position as the top destination in Europe in which to do business.
“The bottom line is that firms of all sizes believe that if they come to the UK, they will grow and succeed.”
Trade and Investment Minister Lord Green said:
“In an intensely competitive economic environment, the Government will continue to work to win and maintain the confidence of the international business community. Through the most competitive tax system in Europe, coupled with support and advice for entrepreneurs, and a renewed drive to market the UK overseas, we’ll continue to support existing investors and reach out to emerging economies and industries.”
The UK attracted investment from 58 countries. The USA remains the largest investor and China is now the third largest creator of new projects. After the US, French investment generated more jobs than investment from any other country.
**Notes to editors
**1. UK Trade & Investment (UKTI) is the UK government department that helps UK-based companies succeed in the global economy. We also help overseas companies bring their high quality investment to the UK’s economy - acknowledged as Europe’s best place from which to succeed in global business. UKTI offers expertise and contacts through its extensive network of specialists in the UK, and in British embassies and other diplomatic offices around the world. We provide companies with the tools they require to be competitive on the world stage.
For more information on UKTI, visit www.ukti.gov.uk or telephone +44 (0)207 215 5000. For latest press releases, visit the online newsroom at www.ukti.gov.uk/media.
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Inward investment results are available online at: www.ukti.gov.uk
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The inward investment figures count: all new investment or expansion in the UK by an overseas owned company; retained UK investment by an existing overseas-owned company that faced closure or rationalisation and where investment in training, processes/technology, equipment and/or buildings is expected within the next three years; joint venture or merger/acquisition, where the foreign owned company has more than a 50 per cent stake in a previously UK based company; new investment by a global entrepreneur that meets one or more of these criteria; and R&D Project successes that meet the criteria for an FDI project.
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2011-2012 Key statistics
- 52,741 new jobs created up 26% on 2010/11 (41,936)
- 59,918 safeguarded jobs up 14% on 2010/11 (52,662)
- Total 112,659 associated jobs (new and safeguarded) up 19% on 2010/11 (94,598)
- 2011/12 1,406 projects - down 2% on 2010/11 (1,434)
- Projects by project type
Project Type**
Projects in 2011/12 & % of total**
Associated Jobs** in 2011/12 & % of total**
Acquisitions, JVs & Mergers
148
11%
50,215**
45%**
Expansions
506
36%
40,907**
36%**
New
752
53%
21,537**
19%**
Totals
1,406**
112,659**
Source: UK Trade and Investment 2012__
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- Projects by project nature
Project Nature**
Projects **in 2011/12 & % of total**
% change between 2010/11 & 2011/12**
Associated Jobs** in 2011/12 & % of total**
Services
617
44%
Up**
4%**
51,408
45%
Manufacturing
256
18%
Up**
22%**
36,269
32%
HQ
286
20%
Up**
4%**
6,552
6%
R&D
162
12%
Down 25%**
10,205
9%
Distribution
38
3%
Down**
42%**
3,465
3%
Contact Centres
35
3%
Down 49%**
3,803
4%
E-commerce
12
1%
Up ****
71%
957
1%
Totals
1,406**
Down ****
2%
112,659**
- Projects by sector
Sector**
Projects **in 2011/12 & % of total**
Associated Jobs** in 2011/12 **
& % of total**
Advanced Engineering
145
10%
17,379
15%
Business Services
74
5%
6,841
4%
Creative & Media
87
6%
6,328
5%
Environmental Technologies
113
8%
7,580
7%
ICT
103
7%
5,627
5%
Financial Services
123
9%
5,933
6%
Life Sciences
137
10%
10,021
9%
Software & Computer Services
233
17%
8,198
8%
Other
391
28%
44,752
39%
Totals
1,406**
112,659
- Projects by country of origin
Summary of the top 15 markets supplying FDI projects:
Country
**No of Projects in 2011/12 **
(& position in 2010/11 based on project numbers)**
Projects **in 2011/12 & % of total**
Associated Jobs** in 2011/12 **
& % of total**
1. USA (1st)**
336
24%
37,525
33%
2. Italy (10th)**
98
7%
1,673
1%
3. China (7th)**
92
7%
2,116
2%
4. Japan (2nd)**
88
6%
7,818
7%
5. India (3rd)**
81
6%
5,454
5%
6. Germany (4th)**
66
5%
4,994
4%
7. France (5th)**
65
5%
12,038
11%
8. Canada (6th)**
59
4%
1,342
1%
9. Switzerland**
(12th)**
54
4%
2,970
3%
10. Australia (9th)**
51
3%
1,500
1%
11. Spain (8th)**
48
3%
2,476
2%
12. Netherlands (13th)**
36
2%**
5,829
6%
13. Ireland (11th)**
32
2%
1,928
2%
14. Denmark (16th)**
22
1%
3,940
3%
15. Sweden (14th)**
21
1%
648
1%
Rest of EU**
83
6%
5,442
5%
Rest of World**
174
13%
14,966
13%
Totals**
1,406**
112,659**
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Notes to Editors
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