Labor market in Switzerland- statistics & facts
The unemployment rate in Switzerland is at its lowest since 2008, with only around four percent of the population eligible to work being unemployed. Low unemployment rates, together with increasing wages, and a growing GDP are all indicators of a strong labor market.
The future of the labor market in Switzerland is looking promising. Of course, the economy can be unpredictable and destabilized by events in other parts of the world, but the Swiss economy and labor market are robust and have survived events such as the pandemic and the invasion of Ukraine, which impacted many European economies. Thus, it is likely that it will remain stable over the coming years.
Employment
There are around 5.3 million people employed in Switzerland. For the past three years employment numbers have been rising steadily and are forecast to continue rising over the next two years. The employment sector is made up of many different industries, those that Switzerland is most famous for include the watch, chocolate, and banking industries to name a few. The majority of the labor force, however, was employed in the service sector. This is likely due to the fact that Switzerland is a popular tourist destination, and therefore the demand for employees in the service industry is high. The agriculture industry had by far the smallest share of employees. Despite the high number of employees in the service industry, hospitality still ranks second on the demand for skilled labor index, meaning that there has been an increase in demand for those working in this particular field.Wage development
Wages have generally increased since 2012, but most recently, although there was an increase in nominal wages, real wages (which are calculated by taking into account the rate of inflation), on the other hand, fell by around two percent. A decrease in real wages has a negative impact on employees, as it means at the end of the month people have less money left over. It is important to note that recently, most European countries experienced a drop in real wages and, in fact, countries such as Italy, Germany, and Austria all saw a much larger decrease. Austria actually had a drop of over four percent. Switzerland is also known for having particularly high wages and ranks third when it comes to highest wages in European countries, just behind Luxembourg and Iceland.The future of the labor market in Switzerland is looking promising. Of course, the economy can be unpredictable and destabilized by events in other parts of the world, but the Swiss economy and labor market are robust and have survived events such as the pandemic and the invasion of Ukraine, which impacted many European economies. Thus, it is likely that it will remain stable over the coming years.
