WHY IRELAND?

Ireland continues to punch above its weight when it comes to attracting the capital of some of the world’s largest and most innovative companies. According to figures from the United Nations, Ireland remains a top destination for foreign capital this decade. In 2020, for instance, Ireland ranked among the top ten destinations for foreign direct investment, with the nation ranked fourth overall, attracting some 8.4% of all global inflows for the year. In 2021, however, inflows dropped sharply along with the depressing effects of the global pandemic.

In the case of Ireland, it’s not one factor but many that continue to draw FDI to its shores. One, US multinationals prefer to invest in markets and economies that are healthy and growing, and on this basis Ireland easily stands out from the rest of Europe and many emerging markets for that matter. Indeed, over 2021-22, Ireland emerged as one of the fastest growing economies in the world, with Ireland’s economy expanding 13.4% in 2021 and by another 10.1% last year, according to the latest figures/forecasts from the OECD. Growth is set to slow this year—to 3.8% according to the OECD—but that is well above the global average and well above expected growth in the EU (less than 1%).

Second, Ireland’s human talent—the nation’s young, educated labour force—remains a key attraction, notably among high-productivity sectors and innovation industries like pharmaceuticals and information technology. According to the OECD, Ireland has one of the most educated workforces in the world, with over 50% of workers between the age 25-34 having a third level education qualification, almost 10% higher than the OECD average.

In general, given Corporate America’s constant search for talent (notably with an unemployment rate in the US at just 3.5%), Ireland’s young, well-educated, English-speaking talent pool remains highly valued by US firms. To this point, an estimated 57,000 Irish workers were employed in manufacturing activities of US affiliates in 2020, the last year of available data, with another 90,000 workers employed in service activities. In the end, America’s extended workforce in Ireland is among the largest in all of Europe.