Job creation: Irish companies are the ‘most aggressive’ in Europe

Ireland was the top-performing country in terms of average job creation per “hot growth” company, with Irish firms creating more than four times the European average number of positions for job-creating companies. This amounted to some 356 new jobs per company per year over the period, or a year-on-year increase of 23 per cent.

Overall, the survey shows that Europe’s 500 hot growth companies (“Europe’s 500”) created 130,000 new jobs from 2001 to 2004, an average of 86 per company per year. In relative terms, the 500 firms increased employment at an average rate of 14 per cent each year. Almost three-fifths of the 500 companies came from the three largest economies in Europe: 111 from Germany, 106 from the UK and 75 from France. While it was the top performer in relative terms, only seven firms came from Ireland.

In terms of absolute job creation, companies in agriculture and mining were the most successful, with an average of 656 new jobs per company. This was followed by the management services sector with 448, transport and logistics with 400, and consumer services with 334. Biotech and life sciences finished in seventh place, with 211 new posts.

The Europe’s 500 survey has been published annually since 1996, and judges company performance over three fiscal years. Six criteria are used in the selection process: entrepreneurial involvement; independence; turnover; size; employment; and organic growth. Companies must also have been operational for at least 3 years.

About two-thirds of firms surveyed had between 100 and 1,000 employees, with 26 per cent of them being listed on stock market. On average, the 500 companies saw their turnover grow by an average of 48 per cent in the period 2001 to 2004, with an aggregate turnover of €88 billion in 2004.