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Foreigners in Switzerland ‘twice as likely to be unemployed’

Research from Switzerland's Federal Statistical Office shows how prevalent unemployment is among the country's foreign residents, even though they are more qualified than Swiss nationals.

People sitting at a table during a job interview
Foreigners in Switzerland are twice as likely to be unemployed as naturalised Swiss. Photo by Sebastiano Piazzi on Unsplash

While moving to Switzerland in pursuit of work is a major factor for many, the study also found a higher level of unemployment among foreigners when compared to the general population. 

The unemployment rate among foreigners is seven percent, compared to just three percent for Swiss nationals without a migration background. 

This is the case despite foreigners in Switzerland being ‘overqualified’ in compared to Swiss nationals.

The FSO found that 19 percent of unemployed first generation foreigners were overqualified, compared with 12 percent of Swiss nationals without a migration background. Unemployed second generation foreigners were also deemed to be 12 percent overqualified. 

READ MORE: Is Basel the best Swiss city for foreigners and Geneva the worst?

First generation foreigners also had less seniority in their workplaces than second generation or Swiss nationals, although the difference was relatively negligible. 

In total, 32 percent of first generation foreigners had a managerial function, compared with 35 percent of Swiss nationals or 32 percent of second generation foreigners. 

The Swiss government was careful to point out that this study only took into account migration status and employment status.

Other factors such as age and education level were not considered but would be relevant in determining employment outcomes. 

More information about the study and its underlying statistics can be found here

Almost 40 percent of Swiss residents have a ‘migration background’

Over 2.7 million people in Switzerland — 38 percent of the permanent residents  aged 15 and over — had a migration background in 2020, according to new data from the Swiss Statistics Office (FSO).

Compared to 2019, this represents an increase of 0.3 percentage points.

Among the population with a foreign background, 80 percent (2.2 million) were born abroad, while the remaining 20 percent (530,000) were born in Switzerland.

The amount of foreigners tends to be higher in the cities such as Zurich and Geneva, although some less urbanised cantons such as Ticino also have a high proportion of foreign residents or residents with a migration background. 

READ MORE: Where in Switzerland do all the international residents live?

Where do foreigners living in Switzerland come from? 

As this FSO chart shows, most represented nationalities among the migrant population are Italian and German.

The following shows the percentages of the total foreign population, rather than the percentage of the population as a whole, including Swiss nationals. 

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How much can you expect to be paid in certain professions in Switzerland?

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How much can you expect to be paid in certain professions in Switzerland?

Thanks to a strong economy and the ability to weather many of the economic storms of the past few years, there is an increased focus on the alpine nation as a destination for job seekers. 

A new report released by financial services company Conotoxia provides a fresh look at the average monthly salaries for Switzerland’s most significant job sectors, and the monthly costs that new arrivals can expect. 

A commanding advantage

The good news is that Swiss workers enjoy a commanding salary advantage over many of their neighbours. 

Conotoxia, which based its report on figures from Switzerland’s Federal Statistics Office states: “Switzerland is renowned for its high labour standards and competitive salaries. The average annual salary is 78,000 CHF or around €79,500.”

In comparison, the most recent figures from Eurostat, dating from 2022, place the average annual salary across the European Union at €33,500. 

Wages in Switzerland do vary depending on the region and the specific position.

READ MORE: Which job sectors in Switzerland employ the most foreign workers?

Medical and IT are the strongest earners

Switzerland’s booming pharmaceutical and life sciences sectors – most visible in the country’s ‘Health Valley’ stretching between Geneva and Bern – have led to doctors and those with direct medical experience expecting to earn Switzerland’s highest monthly salaries. 

Doctors, for example, can expect to earn an average of 8,000 CHF to 15,000 CHF monthly, whereas pharmacists can expect a monthly paycheque of between 7,000 CHF and 10,000 CHF.

With IT providing the backbone to many of Switzerland’s other industries—particularly banking—it is no surprise that programmers, developers, and system administrators can expect a sizeable monthly salary. 

READ MORE: Which Swiss companies have the biggest gaps between high and low earners?

On average, IT professionals should earn between 7,000 CHF and 12,000 CHF. 

Of course, those in the banking sector can also expect an excellent monthly salary. Conotoxia lists roles such as financial analyst earning between 7,000 CHF and 11,000 monthly – with salaries trending towards the higher end in Zurich, the country’s financial capital.

Other professions listed were as follows: electricians (5,200 CHF), pharmacists (7 to 10,000 CHF) hotel managers (5 to 8,000 CHF) University lecturers (6 to 10,000 CHF) sales managers (6,500 to 9,500 CHF) logistics specialists (5,500 to 8,000 CHF) and mechanical engineers (6,500 to 9,000 CHF)

A higher cost of living

Higher salaries, however, result in a higher cost of living for those coming to Switzerland from abroad. 

Rents in Switzerland are among the highest in Europe and can range between 1,000 CHF for a studio apartment and 3,000 CHF for a larger apartment, especially in larger cities such as Geneva and Zurich, which are classed as among the world’s most expensive cities to live in. 

READ MORE: Why are Zurich and Geneva among the world’s most expensive cities?

While essential utilities are not the most expensive in Europe, they are undoubtedly high. 

According to the report, those living in Switzerland can expect to pay between up to 250 CHF a month for power, gas and water. 

However, according to the quality of life database Numbeo, this is still well below the most expensive European country, Austria, where the average monthly cost of utilities is €335.69, and Germany, at €321.45. 

The report also found that the average monthly cost of groceries was between 600 and 800 CHF, depending on the time of year. 

READ MORE Can a family in Switzerland live well on a median salary?

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