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IMMIGRATION

How immigration benefits Switzerland

The State Secretariat for Economic Affairs (SECO) believes that the free movement of people, which allows citizens of EU and EFTA nations to work in Switzerland, has a positive effect on the country’s economy.

How immigration benefits Switzerland
Workers from the EU benefit Switzerland's economy. Photo by AFP

The free movement of people — the agreement Switzerland signed with the EU in 1999 —   remains “important to cover the demand for labour adapted to the needs of different economic sectors”, State Secretariat for Economic Affairs (SECO) said on Thursday, July 7th.

“Foreign recruitment has helped address shortages in the labour market and thus supported economic development”, according to SECO.

While SECO’s call for immigrant employees pertains to workforce from EU / EFTA nations, Finance Minister Ueli Maurer made a similar statement, recommending that Switzerland also takes in more immigrants from outside the European Union to fill some job vacancies, especially in research and IT.

Over the years, statistics have shown how beneficial immigrants are to the Swiss economy. As of 2022, around one in four Swiss residents is foreign – a percentage which is far higher in larger cities like Zurich, Geneva and Basel. 

READ MORE: Where do Switzerland’s foreigners all live? 

In a report released in June 2020, based on the 2019 figures, SECO outlined the positive impact that workers from the EU and EFTA countries have had on Switzerland’s labour market.

These are some of the findings from the 2020 report.

Migrant workforce meets the demands of the Swiss economy

“Immigration from the EU / EFTA to Switzerland is strongly geared to the needs of the economy, as highlighted by the high level of participation in the labour market”, SECO said.

The activity rate of EU nationals was 87.7 percent in 2019, compared to 84.6 percent for Swiss nationals.

“Immigration therefore contributes significantly to increasing the participation of foreigners in working life in Switzerland”, the report found.

But while the native Swiss are more often hired for jobs requiring higher professional qualifications, immigrants are engaged for posts requiring a lower level of qualifications.

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Positive contribution to the flexibility of the labour market

Compared to native Swiss employees, more foreigners have temporary jobs and work more often at night or in the evening. “They offer a flexible labour pool for companies subjected to seasonal fluctuations”, SECO said.

Joblessness

The unemployment rate for people from the EU / EFTA remains above the national average. This can be explained by the concentration of EU / EFTA workers in sectors relatively more affected by unemployment, SECO explained.

Salaries

“Salary growth in Switzerland remains broadly balanced with regard to the different levels of education”, the report states.

“However, the median wage of the Swiss remains significantly higher than the median wage of all workers”, SECO added.

Family reunification

While citizens of EU / EFTA countries come to Switzerland for employment, family reunification is the main reason for immigration from third countries.

“The majority of family members who come to Switzerland as part of family reunification are economically independent and earn a salary”. 

Social assistance

Professional integration and the use of social assistance are closely linked, the report found.

Only 3.4 percent of EU / EFTA immigrants who arrived in Switzerland in 2009 relied on social help within eight years of their arrival.

There’s less risk of having to resort to social assistance with the higher the level of education. People from the EU / EFTA countries who have immigrated as part of a family reunification and who depend on social assistance, “often manage to free themselves quickly and regain economic independence”, SECO notes.

Some 2,125,410 foreign nationals were resident in Switzerland at the end of March 2020, including 1,452 421 from the EU, as well as from Norway, Iceland, and the United Kingdom.

The highest number of foreigners come from Italy (15.3 percent), Germany (14.6 percent), Portugal (12 percent), France (6.7 percent), Kosovo (5,4 percent), and Spain (4 percent).
 

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WORKING IN SWITZERLAND

Switzerland sees record high immigration from European countries

Switzerland has seen record immigration from European countries and a new report reveals a correlation with the country's low unemployment rate.

Switzerland sees record high immigration from European countries

Lots of data indicates that Switzerland needs foreign workers to fill job vacancies.

Now a report from the State Secretariat for Economic Affairs (SECO) confirms the importance that employees from the European Union and EFTA (Norway, Iceland, and Liechtenstein) have had for Switzerland’s labour market and economy in general. 

That is why “demand for foreign labour was strong in Switzerland in 2023,” SECO said in its annual report published on Monday, which assessed the impact that the Free Movement of Persons agreement (FMPA) has had on the country’s employment.

In 2023, 68,000 people from EU and EFTA countries came to work in Switzerland, according to SECO, driven by “employment growth that has significantly exceeded the EU average.”

Why does Switzerland need EU / EFTA workers?

Simply put, they are needed for the country’s economy to function optimally.

As SECO pointed out, while the number of pensioners is growing (due mostly to Switzerland’s exceptionally high life expectancy), “Swiss working-age population has experienced only slow growth over the past 20 years.”

“The country’s economic growth is not possible without immigration,” said Simon Wey, chief economist at the Swiss Employers’ Union. “We need foreign labour if we want to maintain our level of prosperity.”  

READ ALSO: How EU immigrant workers have become ‘essential’ for Switzerland 

In what sectors is the need for these workers the highest?

“A large number of people from the EU coming to work in Switzerland are highly qualified and are employed in demanding activities in high-growth branches of the service sector, such as the branch of special, scientific and technical activities, that of information and communication or the health sector;” SECO’s report said.

But the Swiss economy also recruits EU nationals as low-skilled labour, particularly in the hotel and catering industry, as well as construction and industry.

Why are only people from the EU / EFTA states recruited?

The reason is that, unlike nationals of third countries, people from the EU / EFTA have an almost unlimited access to the Swiss employment market, thanks precisely to the FMPA. 

Also, those coming from the neighbour countries (as most of Switzerland’s foreign labour force does), have the required language skills to easily integrate into the workforce in language-appropriate Swiss regions.
 

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