Job creation in PE and VC-backed companies rose by 7.2 percent in 2022, new data from Invest Europe reveals.
PE and VC-backed companies continue to outpace the average job creation rate, which rose by 2 percent. 2022 was the fifth straight year of positive job creation well in excess of the European average.
Private equity and venture capital portfolio companies created 451,511 jobs in 2022, roughly equivalent to the entire working population of Latvia. All segments of the industry recorded job creation rates well ahead of the European average, led by venture capital-backed companies which added 18% more jobs, representing 83,966 new workers hired. Buyout-backed portfolio companies created most new jobs, hiring 242,334 more people, a 6% increase.
The industry supported 10.9 million workers across the continent at the end of 2022, equating to 5% of the continent’s workforce and more than the population of the Czech Republic. Buyout firms backed 5.5 million workers, roughly three times the working population of Berlin, while jobs supported by the VC segment exceeded 1 million for the first time in the study.
The Information & Communications Technology (ICT) sector was the third-largest employer and the fastest-growing in 2022, adding 13.8% more jobs. The Biotech & Healthcare, Energy & Environment, and Financial & Insurance Activities sectors all recorded high-single-digit employment growth in 2022, underlining European private equity’s strength in vital growth industries.
Eric de Montgolfier, CEO of Invest Europe, commented:
“When we first published our Private Equity at Work report our aim was to set the record straight on employment and show that private equity and venture capital does not destroy jobs, but rather creates them. The data speaks for itself and demonstrates what the industry really can deliver, from year to year and over longer time frames.”
“Wherever you look, European private equity and venture capital is investing to create jobs, thereby supporting businesses and economies, as well as people and communities. It is fuelling innovation and talent, and taking a lead on sustainability and the skills needed. This is an industry entirely focused on sustainable value creation.”