TLDR:
- Invest Europe’s PE at work report reveals that PE and VC-backed companies drove job creation, with the ICT sector showing the fastest growth.
- In 2022, PE and VC-backed companies created 451,511 jobs, well above the European average, with venture capital-backed companies leading in job creation.
Article Summary
Invest Europe’s PE at work report highlights the significant role played by private equity (PE) and venture capital (VC) in driving job creation across Europe. In 2022, job creation in PE and VC-backed companies increased by 7.2%, outpacing the European average of 2%. This marks the fifth consecutive year of positive job creation well above the average.
The report reveals that PE and VC-backed companies created a total of 451,511 jobs in 2022, equivalent to the entire working population of Latvia. Venture capital-backed companies led the way in job creation, adding 83,966 new workers, representing an 18% increase. Buyout-backed portfolio companies also contributed significantly, hiring 242,334 new employees, a 6% increase from the previous year.
Overall, the industry supported 10.9 million workers across Europe at the end of 2022, accounting for 5% of the continent’s workforce. The ICT sector emerged as the third-largest employer and the fastest-growing sector in terms of job creation, with a 13.8% increase in jobs. Other key sectors such as Biotech & Healthcare, Energy & Environment, and Financial & Insurance Activities also recorded significant employment growth.
Eric de Montgolfier, CEO of Invest Europe, emphasized the positive impact of PE and VC investments on job creation, innovation, and sustainability. The report underscores the industry’s focus on sustainable value creation and its contribution to supporting businesses, economies, and communities.
