Tuesday, July 23, 2024

100,000 vacancies in this country and an average salary of €67,000/year cannot attract foreign workers.


Labor crisis in Switzerland: increasing openness to foreign workers

Despite the attractive salaries it offers, Switzerland faces a shortage of skilled workers, prompting it to seriously consider opening its borders to foreign workers.

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Diagnosis of endemic deficiency

After the Covid-19 pandemic, Switzerland, like many European countries, faces a shortage of qualified workers. Simon Wei, chief economist at the Swiss Employers Association, attributes the situation to unfavorable demographic factors, and the large number of retirees outnumbering young people entering the labor market. This dynamic is exacerbated by the crisis in the assessment of work in the post-Covid environment, combined with a general decline in the number of workers in Europe.

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A major economic challenge

The ever-expanding Swiss economy needs more workers. Currently, there are 30% more active workers than there were twenty years ago. In the face of this growth, more than 100,000 jobs are vacant, particularly in the healthcare and catering sectors, the HR report reveals. However, let’s remember that according to the OECD, the average salary in Switzerland in 2024 will be €67,409.40 per year or €5,617 per month.

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Active solutions on the horizon

To compensate for this shortage, demographers and economists recommend increasing the attraction of foreign workers. Natalie Imboden from the UNIA trade union highlights the Swiss economy’s dependence on these workers and underlines the importance of their training. Measures such as recognizing foreign diplomas and increasing the activity of the elderly and disabled are also planned to diversify and expand the workforce.

Towards an increased Swiss population

Some experts propose increasing the Swiss population by 10 million people to better manage the costs associated with an aging and declining active population. However, the proposal has sparked debate across the country.

Impact of Labor Market Reforms

Despite high salaries, international competition to attract skilled workers is intensifying, and Switzerland’s labor policies must be competitive. The Swiss approach, which has long favored a certain format in diplomas and recruitment, may need revision in line with the new realities of the global labor market.

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This article examines Switzerland’s response to skilled labor shortages exacerbated by demographic factors and labor market changes. Given the wide opening for skilled immigration and internal reforms, Switzerland seeks sustainable solutions to maintain its economic competitiveness and meet the needs of a growing labor market.

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