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Regional FDI Employment

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How centralised is Foreign Direct Investment within Ireland? In this chapter we look at how evenly distributed FDI associated employment is across the country. This analysis is based on Census data from 2016 explained in the background notes, it uses the county address of employees to indicate FDI associated employment across regions in Ireland. In using the Census data, we are presenting data for the number of FDI employees residing in each county as a proxy for the amount of jobs at FDI firms in each county. This may result in an underestimate for large urban areas such as Dublin and an overestimate for counties neighbouring large urban areas; for example, we can see these effects in the average FDI associated wage for Wicklow in Figure 8.4 which is strongly affected by jobs which are located in Dublin.

Figure 8.1 shows FDI employment as a proportion of total employment by county. Dublin has the highest proportion of FDI employment, at 29.1%, followed by Limerick with FDI employment accounting for 25.3% of total employment. The lowest proportion is in Monaghan with FDI accounting for 10.3% of total employment in that county. 

% Total Irish FDI Employment
Dublin38.217455714955
Cork12.6486192182534
Kildare5.44683895311293
Galway5.28444990313636
Limerick4.36677766944807
Meath4.21989946440103
Wicklow2.62196588880307
Clare2.56087215265204
Louth2.47382149233321
Waterford2.46432505666207
Tipperary2.16961900300087
Wexford2.13891386099751
Mayo2.05661141851425
Kerry1.8562366258531
Donegal1.54317079656102
Westmeath1.47226407688314
Kilkenny1.29752966053408
Laois1.13165858414475
Cavan1.06708282158097
Offaly0.968636438456766
Sligo0.945211897134609
Roscommon0.856261949681553
Carlow0.747369487319093
Monaghan0.628347493574078
Longford0.452346885802196
Leitrim0.363713486204844

Figure 8.2 shows the share of total FDI associated employment across the economy by county. Dublin has three times more FDI associated employment than any other county. Dublin and Cork combined account for approximately 50% of all employment from Foreign Direct Investment in Ireland. It is important to highlight again that these figures refer to how many employees are residing in these counties. Dublin and Cork may have additional FDI employees residing in neighbouring counties and commuting into the cities.

% of County Employment
Dublin29.1447193723597
Limerick25.2530799787651
Cork24.3917029874617
Kildare24.2690512122537
Clare24.1839052971422
Waterford24.0366802519452
Meath22.265461894343
Louth21.8987306302015
Galway21.4984803997321
Wicklow19.1758305359417
Westmeath17.8008266993264
Mayo17.0011775480832
Average16.7689036952615
Wexford15.9321874042112
Cavan15.4888807204558
Sligo15.4498887566617
Tipperary14.4846678923899
Laois14.1533710756562
Carlow13.9894531018546
Roscommon13.7996122844608
Kerry13.5424124154177
Offaly13.1262868908717
Longford12.9638029574526
Kilkenny12.9061712846348
Leitrim12.3375926124772
Donegal11.8379835360967
Monaghan10.2737953522074

Figure 8.3 shows FDI associated employment as a percentage of the overall employment in a county (which is also displayed in the map, Figure 8.1, above). This is an indicator of how dependant each county’s employment is on foreign investment. On average, 17% of a county’s total employment stems from FDI firms.

Table 8.1 FDI Sectors with the Highest Employment in each County
CarlowRetail
CavanManufacturing
ClareManufacturing
CorkManufacturing
DonegalInformation and Communications
DublinRetail
GalwayManufacturing
KerryManufacturing
KildareRetail
KilkennyManufacturing
LaoisRetail
LeitrimManufacturing
LimerickManufacturing
LongfordManufacturing
LouthRetail
MayoManufacturing
MeathRetail
MonaghanManufacturing
OffalyManufacturing
RoscommonManufacturing
SligoManufacturing
TipperaryManufacturing
WaterfordManufacturing
WestmeathRetail
WexfordManufacturing
WicklowRetail

Table 8.1 presents the most prevalent sectors for FDI in each county across Ireland. Manufacturing or retail are the two top employment sectors in most counties.

MNE Average WageIrish Firm Average Wage
Wicklow59.198999630950936.877354512759
Dublin56.789435486460241.5983959244044
Kildare55.041240911782137.6554903883179
Meath54.394047149625636.35798241693
Cork50.924096855763634.2684096960141
Clare48.91882318147533.2455351955663
Limerick47.14087303703733.5561136368086
Tipperary45.013445588893931.6777460948081
Kilkenny44.431406116821333.4300876402244
Galway44.386715307494834.5193358579622
Westmeath44.087674521030633.8469275143091
Waterford43.894087093389332.3596511689428
Louth42.306420387970332.6190006220011
Laois42.068845668387833.6614504960857
Carlow41.7246831.2543953620985
Offaly40.978139316811832.3415081263696
Kerry40.501417748158530.3221969489925
Wexford40.474791578629630.6367360293748
Mayo40.452046617485531.0839066909941
Cavan40.287481089258730.7054158357771
Leitrim40.021245770258230.4241480278422
Sligo38.978175240054932.487052231294
Roscommon38.659604024297632.750628931857
Longford37.275517638588930.9669858619345
Donegal34.296813612565428.4517611803037
Monaghan34.059924400417129.332777167582

Figure 8.4 shows the average wages by county for FDI firms and Irish firms. Because the data methods rely on employee addresses, the regions neighbouring counties with large cities are likely to receive spill over as employees working in those cities may take up residence in a nearby county. In Wicklow’s case in Figure 8.4 for example, the very high average FDI wage is driven by employment which is mostly located in Dublin.

FDI and Irish Firm Wage Difference
Wicklow22.3216451181919
Meath18.0360647326955
Kildare17.3857505234642
Cork16.6556871597495
Clare15.6732879859086
Dublin15.1910395620558
Limerick13.5847594002284
Tipperary13.3356994940857
Waterford11.5344359244465
Kilkenny11.0013184765969
Carlow10.4702846379015
Westmeath10.2407470067215
Kerry10.179220799166
Galway9.86737944953262
Wexford9.83805554925486
Louth9.68741976596925
Leitrim9.59709774241601
Cavan9.58206525348157
Mayo9.36813992649138
Offaly8.63663119044218
Laois8.4073951723021
Sligo6.49112300876083
Longford6.30853177665444
Roscommon5.90897509244065
Donegal5.84505243226169
Monaghan4.72714723283514

Figure 8.5 shows the difference between FDI associated employment average wages and the average paid by Irish firms for each county.

FDI %
Dublin29.0388436215931
Cork27.3242361748044
Clare27.1352756984273
Limerick27.0776974434824
Kildare26.7738335544415
Waterford25.4827261605128
Meath25.4755044657418
Wicklow24.2003825706718
Louth22.7841035968692
Galway22.396566135714
Westmeath19.4730594241798
Mayo19.1179818124634
Wexford18.0430899158826
Tipperary17.6872846172042
Cavan17.4879313981155
Sligo16.3635717136887
Carlow16.286121045418
Kerry15.9117206574755
Laois15.4253116972873
Kilkenny15.0387472118093
Offaly14.7286076659388
Leitrim14.6301617205325
Roscommon14.6232739702729
Longford14.0171804226751
Donegal13.1372800288152
Monaghan10.9957844446329

Figure 8.6 shows the percentage of the total wages per county that are paid by FDI firms. In Dublin, 29% of the total wages come from FDI firms.


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