Foreign-owned multinational subsidiaries are companies in the Netherlands under foreign control. They create jobs in retail and wholesale trade in particular (205 thousand full-time jobs) as well as in manufacturing (194 thousand full-time jobs).
FTEs as shares in each sector
The contribution of FTEs by foreign-owned multinationals is highest in manufacturing at almost 28 percent. Other sectors in which foreign-owned multinationals are a significant source of employment are transport and storage (27 percent), information and communication (25 percent) and retail and wholesale trade (20 percent).
Jobs created by suppliers of foreign multinationals
Companies often depend on goods and services from other companies for their production and operating processes, thereby providing work to each other. For example, a large manufacturer of revolving doors buys its glass panels from a small glassmaker, which in turn uses an accounting firm for its accounting needs. Most of this ‘indirect employment’ created by multinational corporations ends up at non-multinationals.
In 2014, over 460 thousand FTEs were created at non-multinationals as part of being in the supply chain of foreign-owned multinationals. In addition, Dutch multinationals and the non-business economy (esp. non-profit institutions) created over 115 thousand and 70 thousand FTEs respectively by being part of such supply chains.
By far the most important suppliers of foreign-owned multinationals are companies in the sectors trade and commercial services. Almost 60 percent of indirect employment is created in these sectors.