Employment from foreign multinational corporations has increased in ÎÚÑ»´«Ã½ greater than across the country, since 2016, according to a new report from Invest Vancouver, an economic research division for Metro Vancouver Regional District.
Whereas employment from foreign “multinational enterprises” (MNE) has increased 14.3 per cent across ÎÚÑ»´«Ã½, in ÎÚÑ»´«Ã½ it has increased 46.3 per cent, between 2016 and 2022. The growth also outpaces total employment growth across all industries, which was 8.2 per cent and 16.6 per cent, respectively.
In 2022, these companies employed more than 349,000 people, led by 191.4 per cent growth in “the professional, scientific, and technical services” industries.
The report, based on Statistics ÎÚÑ»´«Ã½ data, explains that foreign direct investment (FDI) occurs “when an individual or firm from one country invests in a business in another and the investor has significant control or influence over the business’s decisions.”
As an example, Lumotive, a U.S.-based manufacturer of 3D sensors, and Wayve, a U.K.-based developer of AI software for autonomous driving, both established a presence in ÎÚÑ»´«Ã½ by opening research and development offices in the Metro Vancouver region during this time.
Such employment continues to be spearheaded by American companies, although the overall share has declined from 68.9 per cent in 2016 to 66.3 per cent in 2022.
With relatively low shares, Sweden (+886 per cent) and China (+832 per cent) were the fastest-growing sources of foreign MNE employment by home country.
Swedish enterprises account for 17,299 jobs in ÎÚÑ»´«Ã½ in 2022 whereas Chinese ones account for 5,956 jobs; American firms account for 231,434, with the 21,693 from the United Kingdom shoring up second place.
The largest three sectors are retail trade with 65,700 jobs; professional, scientific and technical services with 42,100 jobs; and “transportation and warehousing” with 22,700 jobs.
The U.S. firms contribute to $22.8 billion of the $37.1 billion of the province’s GDP; by comparison, United Kingdom firms account for $3.3 billion or 9.0 per cent and Chinese firms account for $676 million, or 1.8 per cent, on par with Swiss firms.
Invest Vancouver’s goal is to improve foreign investment attraction strategies.
The November 2024 report, titled Impact of Foreign Direct Investment in British Columbia and , suggests “foreign direct investment (FDI) can be beneficial for the regions where it lands, creating jobs and generating economic activity” and “foreign multinational enterprises (MNEs) in ÎÚÑ»´«Ã½ tend to be more productive and innovative than Canadian firms.”
"Foreign investment in British Columbia is pivotal in driving employment growth and fostering a dynamic economy. By bringing innovative technologies and advanced practices to our region, these companies not only create valuable job opportunities but also strengthen our workforce’s skill base. This, in turn, boosts productivity and enhances the competitiveness of local industries, helping British Columbia stand out on the global stage," said Linda Buchanan, chair of the Invest Vancouver Management Board in a statement Thursday.
“Foreign multinational enterprises operating in ÎÚÑ»´«Ã½ have played a significant role in boosting economic activity and delivering substantial benefits to the Metro Vancouver region,” added Mike Hurley, chair of the Metro Vancouver Board.
“By spurring local business activity, expanding job markets, and broadening our tax base, foreign direct investment directly supports vital employment and GDP growth,” said Hurley.
