Mumbai: As Europe fights recession for the third year without much success so far, almost all jobs there were created by US, Indian and Chinese investors in 2011, an Ernst & Young survey said.

While US companies led the race by creating as much as 26 percent of new jobs, India and China created the rest, accounting for nearly 9,000 new jobs, which is 95 percent of BRIC nations' contribution during the period, E&Y's 10th Annual European Attractiveness Survey said.

"The number of jobs created by BRIC investors in Europe rose 8 percent in 2011, with India and China together accounting as the largest players for 95 percent of job creation and 82 percent of projects in the EU," it said.

This is in sharp contrast to most European companies which have been issuing pink-slips to their employees.

After a sharp fall in 2010, the number of jobs created by BRIC investors in Europe rose to 9,385, it said, adding that collectively, BRIC economies accounted for 6 per cent of the total job creation in Europe, behind the US and Germany.

Indian companies targeted business services and software, while their Chinese peers focused on the clean technology sector, especially solar power, the survey said.

This survey combines an analysis of global investment in Europe over the last year, with a survey of over 800 global executives on their views about how and where global investment will take place in the next decade.

However, the US continued to be the largest investor in Europe, providing 1,028 projects, which is 26 percent of the total.

Across Europe there was an overall  2 percent increase in projects to 3,906 in 2011, compared to 3,757 in 2010. The average project was markedly larger and FDI job creation was up 15 percent, the report said.

"Despite the current turmoil in Europe, its fundamental strengths continue to endure. While the spotlight has focused on the world's rapid-growth economies, Europe, too, remains a key destination for foreign investors," Marc Lhermitte, E&Y head for international location advisory services and author of the report, said.

Europe remains the world's largest single economy and the attraction of its 500 million high-spending consumers.
With a stable and transparent legal environment, it remains a powerful draw for investors, the report said, adding that Britain remained the most attractive country in Europe for investment with 679 projects, which is 17 percent of the total.

In 2011, India was one of the top five countries to invest in Britain in its machinery and equipment sector. But when measured by number of projects, Germany outpaced Britain, securing 69 projects from BRIC companies, up 35 percent from 2010.

Britain, with 54 FDI projects from BRIC countries, was second, followed by France and Belgium, it said.

Business services and software sectors remain the biggest recipients of FDI projects in Europe, with an increase of 19 percent to 666 and 15 percent to 436 respectively, it said.

Altogether, the two sectors mentioned above accounted for 28 percent of total projects in 2011, providing more than 16,000 jobs.

The automotive sector also saw an increase in the number of FDI projects to 270, from 258 last year and it was also the sector that created the highest number of jobs, at 37,790.

Sectors which saw biggest declines were financial intermediation, which fell by 16 percent and electronics, which fell by 8 percent.


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