Job creation in the manufacturing sector in central and eastern Europe (CEE) is on a downward trajectory, according to data from greenfield investment monitor fDi Markets. Figures peaked at 243,248 jobs in 2007 before more than halving to 114,201 in 2012. In Russia that trend is even more pronounced, with job creation in the manufacturing sector dropping 60% from 78,789 to 31,679 in 2012. And the Czech Republic saw the number of jobs created falling 68% from 22,670 to 7335 between 2007 and 2012.
It is not just CEE that is experiencing such a decline. In China the number of jobs created from manufacturing investments was 167,948 in 2007, falling 31% to 116,072 in 2012, according to fDi Markets. In India, the number of jobs created fell 42% from 100,628 in 2007 to 58,397 in 2012.
Regarding the motive for investing in China in the 2007 to 2012 period, domestic market growth potential was the most commonly cited reason, with 66% of companies listing this, according to fDi Markets. The least cited motive was the presence of natural resources, with only 2% of companies basing their decision to invest on this.
In India, once again domestic market growth potential was the most commonly cited reason for investment, with 60% of companies giving this response. The least cited motive was language skills, which was a deciding factor for just 2% of companies investing in the country.