Monday, April 18, 2011


IWS Documented News Service
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor----------------------
Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau

Summary Estimates for Multinational Companies: Employment, Sales, and Capital Expenditures for 2009 [18 April 2011]
[full-text, 9 pages]

The following are advance summary estimates of the employment, capital spending, and sales activity of U.S. multinational companies (comprising both their U.S. and foreign operations) and the corresponding activity of foreign multinational companies in the United States.

U.S. multinational companies: U.S. and foreign operations

Worldwide employment by U.S. multinational companies (MNCs) decreased 4.1 percent in 2009, to 31.3 million workers, with decreases in both the United States and abroad. Employment in the United States by U.S. parent companies decreased 5.3 percent, to 21.1 million workers, which mirrored the percent change in total private-industry employment in the United States. The employment by U.S. parents accounted for almost one-fifth of total U.S. employment in private industries. Abroad, employment by the majority-owned foreign affiliates of U.S. MNCs decreased 1.5 percent, to 10.3 million workers.

Worldwide capital expenditures by U.S. MNCs decreased 20.6 percent in 2009, to $544 billion. Capital expenditures in the United States by U.S. parent companies decreased 20.7 percent, to $395 billion. Capital expenditures abroad by their majority-owned foreign affiliates decreased 20.2 percent, to $150 billion.

Sales by U.S. parent companies decreased 15.9 percent in 2009, to $7,819 billion. Sales by their majority-owned foreign affiliates decreased 10.9 percent, to $4,885 billion.

Employment in the United States by U.S. parent companies accounted for 67 percent of the worldwide employment of U.S. MNCs in 2009, down from 68 percent in 2008. The U.S.-parent share of the worldwide capital expenditures of U.S. MNCs in 2009 was 73 percent, which was unchanged from 2008.

The U.S.-parent share of MNC activity can change for a number of reasons, and the changes do not uniformly correspond to either additions to, or subtractions from, employment and capital expenditures in the United States. Examples of factors other than production shifting that might be associated with a change in the parent and affiliate shares of MNC activity include different rates of economic growth in the United States and in specific markets where investment is occurring abroad, or the creation of new market opportunities abroad that cannot be served by exports from the United States. These issues are discussed in annual articles on U.S. MNC operations in the Survey of Current Business. 1

Foreign multinational companies: U.S. operations

Employment in the United States by majority-owned U.S. affiliates of foreign MNCs decreased 7.9 percent in 2009, to 5.2 million workers, compared with a 5.3 percent decrease in U.S. private industry employment. U.S. affiliates accounted for 4.7 percent of U.S. private industry employment in 2009, down from 4.8 percent in 2008. Capital expenditures by these affiliates fell by 15.6 percent to $159 billion, and sales fell by 15.7 percent to $2,963 billion.

Changes in the measures of activity of majority-owned U.S. affiliates of foreign companies may reflect a variety of factors, including entries to and exits from the universe of majority-owned U.S. affiliates, as well as changes in the operations of continuing affiliates. In 2009, the overall declines in employment, capital expenditures, and sales for majority-owned affiliates largely reflected reductions in continuing-affiliate operations.

AND MORE...including TABLES....

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

Stuart Basefsky                  
Director, IWS News Bureau               
Institute for Workplace Studies
Cornell/ILR School                       
16 E. 34th Street, 4th Floor            
New York, NY 10016                       
Telephone: (607) 255-2703               
Fax: (607) 255-9641                      

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