U.S. multinational corporations add more employees overseas, data show
WASHINGTON – U.S. multinational corporations hired workers overseas at a faster pace than in the United States in 2005, for the second year in a row, a Commerce Department report said Thursday.
U.S. multinationals – defined as U.S. companies, excluding banks, that own majority stakes in foreign affiliates – added 310,900 people to their overseas payrolls in 2005, an increase of 3.6 percent to 9.1 million.
Meanwhile, the same companies hired 238,000 workers in the United States, boosting their U.S. employment by 1.1 percent to 21.5 million.
The figures for 2005 continue a long-standing trend. U.S. multinationals increased their domestic employment by 0.6 percent in 2004, the report said, while boosting their overseas hiring by 6.1 percent that year. From 1988 to 2002, hiring by U.S. multinationals abroad rose by an average of 4 percent annually, while hiring by the same companies in the United States increased by 1.6 percent.
Seventy percent of the 30.5 million people employed by U.S. multinationals were in the United States in 2005, the department said, down from 78.8 percent in 1988.
In the area of capital spending, U.S. companies boosted their activity in the United States faster than overseas, the report found.
U.S. multinationals increased their spending on buildings, machinery and other equipment in the United States by 15.3 percent to $340.7 billion in 2005. Foreign investment by U.S. multinationals, meanwhile, increased 14.9 percent, to $137.3 billion, the department said.
The report, by the Commerce Department's Bureau of Economic Analysis, said that shifts in employment and capital spending by U.S. multinationals do not necessarily result from shifts in production overseas. Other causes could include different rates of economic growth between the United States and other countries, the report said, or the creation of new market opportunities abroad that cannot be served by exports.
The report, which is based on preliminary data, found that foreign multinational companies employed 5.1 million people in the United States in 2005, or 4.5 percent of total U.S. employment in private industries. That figure represented a slight drop of 0.7 percent from 2004.
But foreign-owned firms continued to increase their capital spending in the U.S., investing $120.9 billion, up 7.1 percent from 2004.
U.S. multinationals – defined as U.S. companies, excluding banks, that own majority stakes in foreign affiliates – added 310,900 people to their overseas payrolls in 2005, an increase of 3.6 percent to 9.1 million.
Meanwhile, the same companies hired 238,000 workers in the United States, boosting their U.S. employment by 1.1 percent to 21.5 million.
The figures for 2005 continue a long-standing trend. U.S. multinationals increased their domestic employment by 0.6 percent in 2004, the report said, while boosting their overseas hiring by 6.1 percent that year. From 1988 to 2002, hiring by U.S. multinationals abroad rose by an average of 4 percent annually, while hiring by the same companies in the United States increased by 1.6 percent.
Seventy percent of the 30.5 million people employed by U.S. multinationals were in the United States in 2005, the department said, down from 78.8 percent in 1988.
In the area of capital spending, U.S. companies boosted their activity in the United States faster than overseas, the report found.
U.S. multinationals increased their spending on buildings, machinery and other equipment in the United States by 15.3 percent to $340.7 billion in 2005. Foreign investment by U.S. multinationals, meanwhile, increased 14.9 percent, to $137.3 billion, the department said.
The report, by the Commerce Department's Bureau of Economic Analysis, said that shifts in employment and capital spending by U.S. multinationals do not necessarily result from shifts in production overseas. Other causes could include different rates of economic growth between the United States and other countries, the report said, or the creation of new market opportunities abroad that cannot be served by exports.
The report, which is based on preliminary data, found that foreign multinational companies employed 5.1 million people in the United States in 2005, or 4.5 percent of total U.S. employment in private industries. That figure represented a slight drop of 0.7 percent from 2004.
But foreign-owned firms continued to increase their capital spending in the U.S., investing $120.9 billion, up 7.1 percent from 2004.
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