Report highlights FDI’s impact on US jobs

The Global Business Alliance (GBA) has released its latest state-by-state analysis of foreign direct investment (FDI) in the US revealing the economic impact and job creation trends driven by international companies.

According to Bureau of Economic Analysis (BEA) data highlighted in the GBA report, South Carolina leads the nation in FDI employment concentration, with 9.8% of private-sector jobs linked to foreign investment. Other top states include Delaware (9.0%), Kentucky (8.8%), Michigan and New Hampshire (both 8.6%).

Manufacturing remains a key sector for FDI-related employment, with Michigan ranking first, where nearly 64% of the state’s FDI jobs are in manufacturing. Kentucky (62.9%), Alabama (57.1%), Wisconsin (55.8%), and Indiana (54.9%) also show a strong reliance on foreign-backed manufacturing jobs.

Wyoming has seen the fastest FDI job growth, with employment surging 56.2% between 2017 and 2022. Other high-growth states include Vermont (37.7%), Delaware (37.6%), Rhode Island (29.9%), and Mississippi (26.1%).

Nationwide, international companies employ 8.4 million Americans and offer wages and benefits 7% higher than the economy-wide average. From 2017 to 2022, FDI employment in the U.S. increased by 9%, outpacing overall private-sector job growth, which expanded by 5%. Foreign-backed firms also support 2.9 million manufacturing jobs, making up 22% of all U.S. manufacturing employment.

GBA is an advocacy group for international companies doing business in the US.