Here are some interesting stats comparing hiring at home, and abroad, by U.S. multinational companies:…
Here are some interesting stats comparing hiring at home, and abroad, by U.S. multinational companies:
Worldwide employment by U.S. multinational enterprises (MNEs) increased 0.4 percent to 42.5 million workers in 2017 from 42.3 million in 2016, according to statistics released by the Bureau of Economic Analysis on the operations and finances of U.S. parent companies and their foreign affiliates.
Employment in the United States by U.S. parents increased 0.2 percent to 28.1 million workers in 2017.
U.S. parents accounted for 66.1 percent of worldwide employment by U.S. MNEs, down from 66.3 percent in 2016.
Employment abroad by majority-owned foreign affiliates (MOFAs) of U.S. MNEs increased 0.9 percent to 14.4 million workers and accounted for 33.9 percent of employment by U.S. MNEs worldwide.
U.S. parents accounted for 22.0 percent of total private industry employment in the United States.
Employment by U.S. parents was largest in manufacturing and retail trade. Employment abroad by MOFAs was largest in China, United Kingdom, Mexico, India, and Canada.
What it means:
It seems that from 2016-2018, employment gains in the U.S. were outpaced by hiring abroad. This is a generalized “mash up”, since these stats could show growth in hiring to serve overseas markets as well as growth in overseas production for the U.S. market. Still, it indicates that U.S. companies (or their majority-owned overseas affiliates), did more hiring abroad than in the U.S.
The stats also represent hiring activity before the big tax cut took effect. It will be interesting to see how things changed in 2018 and 2019. Did some jobs “come home” as planned?