In a newly published report, Invest Europe said PE- and VC-backed companies created 295,000 jobs in 2024, bringing total employment to 11.4 million, up 4% and marking the seventh consecutive year of job growth across Europe.
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).
Source: Invest Europe, Private Equity at Work report By the end of 2024, PE- and VC-backed 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.
Source: Invest Europe, Private Equity at Work report
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.