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How immigration boosts the entire Swiss economy

The foreign workforce in Switzerland has been at the centre of controversy for years. But as a new study shows, immigrants are a boost to the country’s economy.

How immigration boosts the entire Swiss economy
Most foreign workers come from the EU. Photo by SEBASTIEN BOZON / AFP

Even though some right-wing politicians have suggested that immigrants are taking jobs away from the Swiss – a claim that has been refuted by others — research shows that in reality foreign workers contribute to strengthening Switzerland’s economy.

In general terms, this question is addressed in a new study carried out by the Boston Consulting Group (BCG).

It found that “immigration countries recorded an average plus of two percentage points in the growth of the gross domestic product, because culturally mixed societies are more innovative. As a result, productivity and incomes also increased”.

While this study examined economic advantages of migration in all countries, and not particularly in Switzerland, there is enough evidence showing that foreign nationals benefit Swiss economy in numerous ways.

According to BCG Switzerland spokesperson Matthias Haymoz, 58 billion francs of the total gross domestic product are contributed each year directly and indirectly by immigrants. This corresponds to 8.2 percent of Switzerland’s total economic output – and is high in an international comparison.

One of the reasons for this is that Switzerland attracts a large number of highly qualified people, Haymoz said.

This finding is also supported by other data, like a report from University of Basel that examined  how Swiss economy benefits from immigration.

“In Switzerland there is a shortage of skilled labour in certain sectors of the economy. As a result, specialists in various fields have to be recruited from abroad”, according to the report.

“Highly qualified immigrants can help address this imbalance in the labour market”, said Basel economist Ensar Can.

“This relieves the pressure on companies, enabling them to continue operating and, in many cases, create new jobs – a good thing for the economy as a whole”, he added.

READ MORE: How can I have my foreign qualifications recognised in Switzerland?

Another report, issued by the State Secretariat for Economic Affairs (SECO), reiterates this point.

It states that the free movement of people, which allows citizens of EU and EFTA nations to work in Switzerland, is positive for the country because it meets the demands of the Swiss economy for both skilled and unskilled workers.

“Immigration from the EU / EFTA to Switzerland is strongly geared to the needs of the economy”, SECO said.

For example, the activity rate of EU nationals was 87.7 percent in 2019 — the last year for which statistics are available — compared to 84.6 percent for Swiss nationals, the report found.

Foreigners also fill other gaps in the labour market.

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

Also, while immigrants compensate for the shortage of high-skilled workers, the opposite is also true: they fill in low-skilled positions which are also essential for the country’s prosperity.

In what sectors do most immigrants work?

As this chart from the Federal Statistical Office indicates, most foreigners are employed in manufacturing, retail, as well as healthcare and social services sectors.

More immigrants in Switzerland in the first half of the year

In the first six months of 2021, immigration to Switzerland increased by 3.9 percent, compared to the same period of 2020, according to a new report released by the State Secretariat for Migration (SEM).

These developments are mainly due to the fact that, compared to the first pandemic wave of spring 2020, more third-country nationals came to Switzerland.

Net migration amounted to 26,008 people. In all, 2,128,812 foreigners were residing in Switzerland at the end of June 2021.

 READ MORE: An essential guide to Swiss work permits

 

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LIVING IN SWITZERLAND

Lost and found: where to look for your ‘missing’ items in Switzerland

In Switzerland, like in other countries, people sometimes lose their belongings in various places. Many ultimately find their way to their rightful owner.

Lost and found: where to look for your ‘missing’ items in Switzerland

Unlike socks that disappear in the wash, never to see the light of day again (which is a global, rather than just Swiss phenomenon), many lost items often do reappear. 

The bigger the item is, the more chance there is of it being found.

But even smaller objects like keys are often returned to their owners — it all depends on who finds them and to what lengths these people are willing to go to ensure that lost items are returned to their owners.

(Human nature being what is it is, you have more chances of being reunited your keys than with your jewellery or a wallet that still has all its contents inside).

But you may be surprised to learn that cases of exemplary honesty still exist.

One such example, in 2022, involved an envelope containing 20,000 francs found lying on a sidewalk by passersby and returned to the man who dropped it while getting into his car. 

What are some of the more unusual things people leave behind?

Each year, Uber Switzerland publishes a list of things that passengers forget in cars. 

This year, among purses, cell phones, laptop computers, umbrellas, and pieces of jewellery, drivers found in the back seats items including a purple wig, carnival mask, coffee machine, and a spatula for crêpes.

The items found on trains are even stranger. 

They include, according to the national railway company SBB, taxidermy animals, an authentic samurai sword, and a prosthetic leg (it’s not clear whether this was a spare or whether the passenger had to hop off the train).

Where should you look for the items you lose in Switzerland?

It depends on where you think, or know, you left your belongings.

Public transport

If it’s on the train, file a lost property report here

For the PostBus, it’s here

Additionally, public transport companies in your community have their own ‘lost and found’ offices, as do local police stations.

Airports

Zurich 
Geneva 
Basel 

Additionally, to maximise your chances of being reunited with your lost property, report it here.

Through this site, you can also check whether your lost item has been found and handed in at one of the offices.

If your lost item is found, must you pay a ‘finder’s fee’?

Yes, Swiss legislation says so.

No exact amounts are specified, but “the reward should be appropriate in relation to the find,” according to Moneyland consumer platform.

In principle, “a finder’s fee equal to 10 percent of the amount returned to the owner is considered an appropriate reward.” 

Also, if the process of finding out who the lost object belongs to and returning it to you generates extra expenses for the finder (such as train fare or other travel costs, for example), you have to reimburse these expenses in addition to the reward.

(By the same token, if you find and return someone else’s belongings, you can expect the same compensation).

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