Multinational firms added more than 24,000 new jobs in 2022, but momentum set to slow next year

The number of people directly employed in the multinational sector rose by 9%

Companies in the tech sector were forced to slim down this year but other players, including pharma giants like Pfizer continue to invest.

Ireland’s multinational sector continued to grow and boost jobs this year amid mounting economic headwinds, but momentum is expected to slow in the second half of next year, according to IDA Ireland.

IDA, which is responsible for securing foreign direct investment (FDI) into Ireland said that it is expecting a “positive pipeline” of contracts for the first half of 2023.

“Client companies remain positive about the business environment in Ireland and our attractiveness relative to key competitor locations for foreign direct investment,” said IDA Ireland interim CEO Mary Buckley.

Many of the new investments that are expected in the new year will come from multinationals and Irish-owned corporations in sectors including life sciences, food and beverages, manufacturing and pharma, and aviation, said Tánaiste Leo Varadkar.

However, some multinationals, especially tech firms, are already coming under pressure from inflation and interest rate rises and are slimming down as a result.

“In the face of such uncertainty, we are likely to see companies adopt a cautious approach, so slower growth is likely in 2023 with less clarity in H2 of next year,” said Ms Buckley.

Meanwhile, job losses in multinationals remained at “historically low levels”, IDA’s annual results showed, but these figures did not take into account the recent tech downturn in recent weeks as data for the report was collected up until the end of October.

IDA said it will continue to monitor the situation in the global technology sector following job cuts announcements in recent weeks but remains optimistic about Ireland’s relationship with companies that have recently announced layoffs.

“The technology base in Ireland has been building for over 60 years and will continue to grow in the future, despite current challenges,” said IDA.

The number of people directly employed in in the multinational sector rose to 301,475, representing a 9% increase on last year’s figures.

There were 32,426 new jobs created in 2022, up from 29,000 last year. The net increase of jobs also climbed to 24,000, an increase of 7,000 on the previous year.

IDA Ireland said 242 investment contracts were agreed this year, which was slightly below last year’s figure of 249. Just over 100 of these were new name investments.