Invest Europe has published the
seventh edition of its Private Equity at Work report, highlighting
continued job creation by private equity (PE) and venture capital (VC)-backed
companies across Europe.
The report shows that PE- and
VC-backed businesses increased employment by 4 per cent in 2024, marking the
seventh consecutive year of net job growth and outperforming overall European
employment trends. In total, these companies created 295,312 net new jobs
during the year, roughly equivalent to the working population of Riga.
Job creation was recorded across all
regions, ranging from 2.3 per cent growth in the Nordics to 5.6 per cent in
Central and Eastern Europe, with several countries reporting significantly
higher increases, including Belgium (11.9 per cent), Bulgaria (11.6 per cent),
Poland (11.1 per cent), Austria (10.7 per cent) and Greece (9.7 per cent).
companies employed 11.4 million people across Europe, representing around 5 per
cent of the continent’s total workforce of 244 million. Employment was
concentrated in major markets, with more than 3 million workers in France, 2.38
million in the UK and 1.45 million in Germany, together approaching the
combined working populations of Finland and the Netherlands.
The report also highlights sector and
investment-stage dynamics. Key industries such as ICT, Energy &
Environment, and Financial & Insurance Activities all recorded job growth
above the 4 per cent industry average.
Venture-stage companies led with an 8.7
per cent increase in employment, followed by growth-stage firms at 4 per cent
and buyout-stage businesses at 3.8 per cent.
Eric de Montgolfier, CEO of Invest
Europe, said:
When we first published Private
Equity at Work, our aim was to show that private equity and venture
capital-backed companies create jobs, rather than destroy them. We have
unambiguously proved our point. Today, what also emerges is how our industry
supports people and communities, while developing skills for a more innovative,
competitive and sustainable Europe.
The findings also challenge common
assumptions about workforce reductions following investment. Companies backed
by PE and VC firms recorded a 35 per cent job creation rate in their first year
of ownership, reflecting the hiring needed to support expansion and strategic
execution.
While job growth moderates over time, it remains positive, with a 10
per cent increase still recorded in the fifth year of ownership.