Switzerland: Half a Million Fewer Workers in 10 Years

This time the alarm was sounded by the Swiss Union of Entrepreneurs: by 2035, the Alpine country may be short of 297 thousand workers, and in the worst case even 460 thousand.

According to a study released Thursday, November 6, “Labor shortages will worsen structurally in the medium to long term: the potential local workforce will shrink as the baby boom generation born in the 1960s retires. And there will be fewer new hires.” More specifically, the domestic labor supply in Switzerland will decrease by around 297,000 full-time employees between now and 2035. On the other hand, another 163,000 employees would be needed to maintain current wealth. In total, the Employers’ Union estimates that Switzerland will be short of around 460,000 employees in 10 years’ time.

First of all, better utilization of Swiss labor is needed. But the country can’t do without foreigners. To solve the problem, “bold political measures” are needed, experts from the Union of Entrepreneurs wrote.

“Switzerland needs immigration to meet its labor needs. The free movement of people within the European Union is an important factor in Switzerland’s success. Especially in the context of demographic development and growing labor shortages, it is crucial that Swiss companies have access to foreign workers,” the study said.

However, the high level of immigration worries and alarms the Swiss population. Net immigration to Switzerland has increased in recent years, while immigration from the European Union into the Swiss Confederation’s labor market “constitutes a significant part of total immigration.”