Why does Zurich have the highest wages in Switzerland?
Various studies show that when it comes to salaries, Switzerland’s largest city has an edge over other regions. What is the reason for that?
Switzerland’s wages are famously high overall, but if you analyse them closer, you will see that, salary-wise, some regions fare better than others.
Logically, earnings are higher in large cities than in small towns and rural areas, as that is where most economic opportunities are.
However, income disparities exist even between the urban centres.
This has been shown in various surveys, including the latest one, released this month by HES-SO, the umbrella association of Swiss universities of applied sciences (UAS).
Unlike general universities, UAS doesn't offer Master or Doctorate degrees, but rather Bachelor's programmes linked with a specific professional field. They are often attended by people who had completed their vocational training and wish to further their education.
What did this survey find?
What emerged from this study is that graduates of universities of applied sciences earn significantly more in 2023 that they did two years ago, when the last study was carried out.
Their median annual wage currently amounts to 104,000 francs, compared to 100,000 in 2021.
However, the results also indicate that there are regional disparities, with wages being higher in German than in French-speaking Switzerland.
Among the cantons, Zurich is in the lead, with a median income of just over 111,000 francs per year.
This is not exactly a new piece of information: statistics show that salaries in Zurich are 10.8 percent higher than in Geneva, and 5.4 percent higher than in Basel.
How can this discrepancy be explained?
The Local put this question to Fabian Büsser, director at Michael Page recruitment agency.
He said that it is a matter of what kind of jobs are most in demand and their geographical location.
"Some of the highest paying jobs are in finance, insurance, IT, and engineering," he pointed out, most of which are located in the German-speaking part of Switzerland.
“This region accounts for nearly 90 percent of advertised jobs in these sectors and is home to the largest banks, insurers and technology companies, as well as other firms requiring engineers, such as real estate and property,” Büsser said.
According to the latest Michael Page Swiss Job Index, while 89 percent of these jobs can be found in the German-speaking region, only 10 percent are in the French-speaking area (and even fewer — 1 percent — in Ticino).
There is, however, some positive news for the Swiss-French part
The HES-SO survey found that while this region trails behind the German-speaking part, the wages there have increased significantly.
The median annual salary in the Geneva area is 92,300 francs, which corresponds to an increase of 8.4 percent compared to two years earlier.
This is particularly the case in the IT branch, with a median salary of 112,000 francs, followed by finance and insurance, with 106,000 francs.
How do these wages compare to those who graduate from 'regular' universities?
Switzerland has several kinds of higher education establishments: cantonal universities and two federal polytechnic institutes: one in Zurich (ETH) and the other in Lausanne (EPFL).
They are considered the ‘highest’ educational institutions.
Graduates of these establishments can earn as much as 10,170 francs a month, which amounts to 122,000 a year.
READ ALSO: How much can you earn with a Swiss university degree?
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Switzerland’s wages are famously high overall, but if you analyse them closer, you will see that, salary-wise, some regions fare better than others.
Logically, earnings are higher in large cities than in small towns and rural areas, as that is where most economic opportunities are.
However, income disparities exist even between the urban centres.
This has been shown in various surveys, including the latest one, released this month by HES-SO, the umbrella association of Swiss universities of applied sciences (UAS).
Unlike general universities, UAS doesn't offer Master or Doctorate degrees, but rather Bachelor's programmes linked with a specific professional field. They are often attended by people who had completed their vocational training and wish to further their education.
What did this survey find?
What emerged from this study is that graduates of universities of applied sciences earn significantly more in 2023 that they did two years ago, when the last study was carried out.
Their median annual wage currently amounts to 104,000 francs, compared to 100,000 in 2021.
However, the results also indicate that there are regional disparities, with wages being higher in German than in French-speaking Switzerland.
Among the cantons, Zurich is in the lead, with a median income of just over 111,000 francs per year.
This is not exactly a new piece of information: statistics show that salaries in Zurich are 10.8 percent higher than in Geneva, and 5.4 percent higher than in Basel.
How can this discrepancy be explained?
The Local put this question to Fabian Büsser, director at Michael Page recruitment agency.
He said that it is a matter of what kind of jobs are most in demand and their geographical location.
"Some of the highest paying jobs are in finance, insurance, IT, and engineering," he pointed out, most of which are located in the German-speaking part of Switzerland.
“This region accounts for nearly 90 percent of advertised jobs in these sectors and is home to the largest banks, insurers and technology companies, as well as other firms requiring engineers, such as real estate and property,” Büsser said.
According to the latest Michael Page Swiss Job Index, while 89 percent of these jobs can be found in the German-speaking region, only 10 percent are in the French-speaking area (and even fewer — 1 percent — in Ticino).
There is, however, some positive news for the Swiss-French part
The HES-SO survey found that while this region trails behind the German-speaking part, the wages there have increased significantly.
The median annual salary in the Geneva area is 92,300 francs, which corresponds to an increase of 8.4 percent compared to two years earlier.
This is particularly the case in the IT branch, with a median salary of 112,000 francs, followed by finance and insurance, with 106,000 francs.
How do these wages compare to those who graduate from 'regular' universities?
Switzerland has several kinds of higher education establishments: cantonal universities and two federal polytechnic institutes: one in Zurich (ETH) and the other in Lausanne (EPFL).
They are considered the ‘highest’ educational institutions.
Graduates of these establishments can earn as much as 10,170 francs a month, which amounts to 122,000 a year.
READ ALSO: How much can you earn with a Swiss university degree?
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