I've been listening to government recently promoting the importance of Foreign Direct Investment for jobs. After all, when it comes to corporate taxation, they'd rather not go there.
A ratio that seems to come up again and again is 1:1 - the ratio of indirect jobs created for every FDI job. Indeed, I believe I heard Minister Richard Bruton quoting this figure again recently.
So I thought I might look into this a little. The best I can come up with is an IDA figure from 2010 given to the Joint Committee on Enterprise, Trade and Employment of 1:0.7, that is 30% less.
Joint Committee on Enterprise, Trade and Employment - 23/Mar/2010 Horizon 2020 Strategy: Discussion with IDA Ireland.Arising from our approach, we have set some high-level goals for the five-year period, targeting the creation of 62,000 new jobs in foreign direct investment companies, both existing and new. The impact of this in the economy will be the creation of 105,000 jobs. Indecon has done some work for us that shows the multiplier effect is approximately 0.7 in respect of every new job created.
Can anyone do any better?