The number of people directly employed by US multinationals in Ireland increased to 190,000 in 2021 from 180,000 the previous year.
A new report from the American Chamber of Commerce Ireland (AmCham) estimates that related indirect employment levels increased to 152,000 from 144,000 last year.
The Ireland – The Next Century report shows that the two-way US-Ireland trade and investment relationship stands is at an all-time high.
AmCham said that the number of US companies operating in Ireland now stands at almost 900. The chamber’s report also shows that there are over 700 Irish companies operating in the US, employing 100,000 people, and that Ireland is the ninth biggest source of FDI for the US.
AmCham also released the results of a survey of its member companies, which signals that 95% of US multinationals are of the view that Ireland will remain an attractive location for US investment, post implementation of the global OECD corporate tax agreement.
AmCham president Catherine Duffy commented: “Despite the uncertainty brought about by the pandemic, 2021 marked the highest ever annual employment creation figures by the multinational sector in Ireland.
“US multinationals accounted for 64% of all FDI in the country last year, and US companies spend €12.3bn on payroll, over €8.8bn on goods and services and invest €6.5bn in capital expenditure.”
The report contains and economic assessment by Joseph P. Quinlan, who notes that the United States and Ireland are experiencing some of the fastest levels of economic growth in decades.
“That said, new headwinds to growth and stability have emerged, including a global spike in inflationary pressures owing to global supply chain bottlenecks and soaring wage costs – and that was before the crisis in the Ukraine, under attack from Russia,” says Quinlan.
In the Quinlan analysis, US companies are attracted to Ireland due to political stability; ease of doing business and global competitiveness; competitive tax regime; and an attractive research and development ecosystem of proven innovation capacity.
Also in Ireland’s favour is membership of the European Union, and the fact Ireland is well placed to take advantage of advancing global digitalisation.
Mark Redmond, AmCham CEO, addressed the crisis in the Ukraine, saying: “This year Ireland begins its second century of independence. Ireland’s success in attracting inward investment, being a global leader in innovation and transforming from an isolated island of emigration to a global inclusive centre of talent was only possible thanks to international institutions, safeguards and protections.
“Ireland advocates for the shared values of the European Union – human dignity, democracy, equality, the rule of law and human rights. These values and the trust in global trade and collaboration are under attack by the Russian invasion of Ukraine.
“Today we remember the Irish proverb, ‘It is in the shelter of each other that the people live’, as AmCham Ireland expresses our solidarity with the people of Ukraine who are so bravely defending the liberties and values that have made the achievements portrayed in this Report possible.”