Foreign investment jobs in UK fall by 52 per centHarry YeatesThe number of jobs created by foreign investment in the UK fell by 52 per cent last year, to just over 34,000.
Despite this nosedive the country still attracted more inward investment than any other nation except the US, with R&D a particular strength.
In its annual operations review, Invest UK, the Government agency that helps foreign businesses moving to the UK, said US companies were responsible for more than a third of the 764 projects registered (which include new investments, expansions, mergers, and joint ventures). These alone accounted for nearly 14,000 jobs, although the decline in US investment in technology projects was the biggest single fall from 2000.
"In the current economic climate international business is more cautious," said Trade and Industry Secretary Patricia Hewitt. "Many investors will have postponed decisions until confidence returns and we must be ready to secure these opportunities as recovery comes."
The Invest UK report cited a 200-job, $30m investment by Europa Magnetics in a CD-R plant at Cramlington, and the sale of the Zarlink fab in Plymouth to German firm X-Fab as highlights.
The most successful sector for inward investment last year was software, with 87 projects. Electronics and telecoms were fourth and fifth in the list of nine, with 54 and 41 new projects, respectively.