Foreign companies create nearly 1.4 million jobs

14/12/2017 15:00
There are around 15 thousand foreign-owned enterprises in the Netherlands. Together with their suppliers, these multinationals were good for approximately 1.4 million full-time jobs (FTEs) in 2014, i.e. almost 20 percent of all full-time jobs in the Netherlands. These and other figures on multinationals are reported by Statistics Netherlands (CBS) in the latest edition of the Internationalisation Monitor.
In 2014, foreign-owned multinationals created over 700 thousand FTEs in direct jobs. In addition, these companies contributed almost 650 thousand indirect jobs at other companies.
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.

Input sectors

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.