March 15, 2006
Globalization brings jobs to New York, report shows
New York State is a net beneficiary of globalization and free trade, a new report by the Organization for International Investment (OFII) shows.
“U.S. subsidiaries in New York have consistently supported a significant number of jobs in the state,” the OFFI says on its Web site. “They now employ 382,600 New York workers—an increase of 17 percent over five years.”
The report on insourcing by U.S. subsidiaries of foreign companies shows that more than 5 percent of the state’s private-sector work force is employed by such subsidiaries. New York also has the second-highest number of employees supported by U.S. subsidiaries in the nation.
“U.S. subsidiaries support 60,900 manufacturing jobs in New York,” the OFFI said. “Manufacturing companies tend to have a strong ‘multiplier’ effect on the economy—stimulating a substantial amount of activity and jobs in other sectors through their demand for inputs from other suppliers.”
About 16 percent of jobs at U.S. subsidiaries in New York are in manufacturing industries, the OFFI said.
The OFFI said U.S. subsidiaries employ 5.3 million Americans nationwide. Total payroll of subsidiaries exceeded $317 billion last year.
“New foreign direct investment (FDI) in the U.S. totaled $79.8 billion in 2004; an increase of $16.2 billion or 26 percent from 2003,” the OFFI said. “In 2004, U.S. subsidiaries reinvested $45 billion in their U.S. operations, up from just $1.5 billion in 2003 and far above those recorded in any previous year.”
The OFFI also said U.S. subsidiaries put money into U.S. research and development, spending $29.5 billion in 2003, an increase of 7 percent over the year before.More information, and statistics on U.S. subsidiaries in all states, are available at www.ofii.org/insourcing-stats.htm.