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CINDE´s Foreign Direct Investment Results: FDI generated 12.307 new jobs in 2016

CINDE´s Foreign Direct Investment Results: FDI generated 12.307 new jobs in 2016

40 new investment projects were attracted in the services, life sciences, advanced and light manufacturing and food industry sectors.
94% of the installed companies grew or maintained stability in their operations in Costa Rica

San Jose, December 14th, 2016. The Costa Rican Investment Promotion Agency (CINDE), together with the Ministry of Foreign Trade (COMEX), reported that multinational services, life sciences, advanced and light manufacturing, and food industry companies generated 12,307 new formal jobs in 2016. In addition, the report provided by the entities added the attraction of 40 investment projects to the country (18 projects in the services sector, 12 in the life sciences sector, 5 in the light manufacturing sector and 5 in the advanced manufacturing sector).

According to Jorge Sequeira, Managing Director of CINDE, the numbers provided by the Statistics System of Employers, Workers and Wages of the Costa Rican Social Security Entity, CCSS showed that 94% of the multinational companies operating in Costa Rica grew or maintained their operations without variation in the country demonstrating the determination and strength of the companies.

"In the midst of a very challenging international context and a fierce competition for attracting foreign investment, we are reporting the generation of 12,307 new formal very high quality jobs for a very diverse range of population groups; we are very pleased and proud of this contribution to the country´s development," he added.

Alexander Mora, Minister of Foreign Trade, said: "these facts highlight again the importance of foreign direct investment as a strong driver of our economy and as a fundamental pillar to generate quality employment opportunities for Costa Ricans. Boosting the attraction and growth of companies has been an essential part of our efforts as a government, and today we are harvesting the results of a very successful work thanks to the invaluable support of CINDE. Certainly we are surrounded by challenges arising from the global economic environment, and there are also internal areas in which we must continue working to strengthen our competitiveness; but this does not prevent the positive reading we do of the results revealed today, nor the great satisfaction they cause us. We are also motivated to continue working from the foreign trade sector without pause, in achieving the goals we have set, for the generation of new and growing opportunities for our population, and in the successful participation of Costa Rica in value chains that produce revenues to our nation."

Contribution to the country:

The information provided by the CCSS to CINDE also showed that the net employment generated was around 7,841 formal jobs, 21% higher than in 2015. In addition, the mobility of employees (employees who move from the multinational sectors to other industries) reached 4,466, which represents a decrease of 22% compared to 2015.

The net employment generated by the CINDE companies represents 16% of the total net formal employment generated by all sectors of the country in 2016 and 22% of the total net formal employment generated by the private sector. "The contribution of multinational companies to the generation of job opportunities is very significant. We must continue to guarantee the country conditions so that it can maintain this dynamism" said Sequeira.

With the growth experienced in 2016, CINDE's services, life sciences, advanced and light manufacturing, and food industry sectors add up 89,264 total jobs in Costa Rica (over 9.6% than in 2015).

Strengthening human resources: priority for Costa Rica

According to figures reported to CINDE by multinational companies, the number of jobs generated could have been duplicated in 2016 by having more prepared human capital with preparation in high demand and bilingual careers.

Regarding employment generation opportunities outside the Greater Metropolitan Area (GAMA), CINDE invited the communities to work locally on their competitive conditions and to facilitate the arrival of investment projects. This 2016 reported the arrival of two companies from the food industry to the Caribbean and the North Pacific.

As support of this matter during 2016, CINDE launched the strategy to international media and specialist consultants, in order to encourage the interest of companies in these areas. In addition, the organization has been working with local governments to enable them to establish action plans to improve their competitiveness.