SHARE
COPY LINK
For members

JOBS

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

 

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

WORKING IN SWITZERLAND

Can you claim unemployment benefits in Switzerland if you quit your job?

Sometimes you’ve just had enough, and it’s time to get out of a job that isn’t right for you. However, are you still able to claim unemployment in Switzerland if you quit? Here’s what to know. 

Can you claim unemployment benefits in Switzerland if you quit your job?

The short answer is yes, you can claim unemployment if you quit your job in Switzerland, thanks to the compulsory unemployment insurance that you’ve paid into.

But, there are a few caveats you need to know about.

The first is that you must be on a ‘B’ or ‘C’ permit to be eligible for unemployment benefits- as are the majority of international workers in Switzerland.

Those on an ‘L’ permit are eligible to draw unemployment benefits, if they worked in Switzerland for 12 months.

READ MORE: What unemployment benefits are foreign workers in Switzerland entitled to?

You also cannot claim unemployment if you’ve been self-employed or a freelancer for the duration of your time in Switzerland. 

This is because you need to have been engaged in full-time work paying into Switzerland’s national unemployment insurance program for a year – earning at least 500 francs a month – to be eligible.

Finally, there will be a penalty applied if you quit your job and then immediately file for unemployment benefits. 

Specifically, there will be a holding period on your payments of up to sixty days, although this will depend on your unemployment advisor and the circumstances of your quitting. If there are medical or mental health issues involved in quitting, your job, these can be taken into consideration in modifying the period. Therefore, it’s a good idea to hold on to any doctor’s reports when registering.

READ MORE: What you should know if you want to quit your job in Switzerland

If you are eligible, and you have registered at your local Regional Employment Centre (RAV), you can expect to receive 70 percent of your previous salary, and 80 percent if you have a dependent under 25 years of age, or you have a registered disability. 

The maximum unemployment benefits distributed to an individual by the government are 148,200 francs a year, for a monthly payment of 12,350 francs.

SHOW COMMENTS