How EU immigrant workers have become 'essential' for Switzerland
Immigrants from the EU have had a positive effect on Switzerland’s labour market, the government has said but how exactly are they boosting the country's economy?
Foreigners who have come to work in Switzerland since 2002, when the Free Movement of Persons Agreement (AFMP) between Bern and Brussels went into effect, have “strongly influenced the evolution of the population and the labour market in Switzerland,” the State Secretariat for Economic Affairs (SECO) said on Tuesday.
The AFMP "made it possible for Swiss companies to access the potential workforce from the EU area more easily. This was used primarily to cover the need for qualified, often specialised, skilled workers," SECO pointed out.
"Over the past 20 years, immigration from the EU has been essential to meet labour demand," the government body said, adding that workforce from the European Union has also "compensated for a replacement need linked to demographics."
This means that as more people retire and no new candidates for vacant jobs can be found in Switzerland, foreign workers are filling this gap.
The AFMP "has made it easier for Swiss companies to make use of the labour potential of the EU in order to meet, above all, the demand for qualified personnel,” SECO pointed out.
However, recruitment within the EU does not stop there.
It also extends to jobs requiring medium to low levels of qualifications, where no Swiss candidates are found.
Specifically, this is the case in sectors such as crafts and retail, in addition to industries which have traditionally employed many workers from abroad, including healthcare, construction, as well as hotels and restaurants.
SECO's report also noted that “due to sustained labour demand and a historically low unemployment rate," — and despite the high cost of living — "Switzerland remains attractive for foreign workers."
READ ALSO: Why do foreign workers flock to Switzerland?
In the future too, "further growth of the working-age population will continue to depend on immigration, even more so than currently," according to SECO. “The number of people leaving the employment market to retire tends to be higher than the number of incoming workers,” — a phenomenon which will further widen the deficit on the Swiss labour market, and where EU employees will be particularly needed.
Opposition is looming
Although the government as well as the business community are in favour of employees coming from the EU, some in Switzerland have spoken against this trend.
The populist Swiss People's Party (SVP), for instance, is taking a hard line against immigration.
The right-wing party has consistently spoken out against what it sees as too many foreigners in Switzerland.
But the SVP is taking things a step further by launching an initiative with the aim of limiting the population — foreign population, that is — of the country.
The anti-immigration campaign, which has been in the works for some time, calls for "No 10-million Switzerland", meaning the party wants to stop Switzerland from hitting the threshold of 10 million residents by 2050, as predicted.
Should this initiative go to the ballot box and be accepted, the Federal Council would have to terminate AFMP, tot he detriment of Switzerland’s economy.
Business lobby Ecoomiesuisse has last week released a statement saying that Switzerland is "in the midst of a demographic upheaval, the consequences of which are now becoming increasingly apparent".
The group also said that more people are retiring than young people entering the labour market.
"The resulting problems are serious if the development continues to be ignored."
READ ALSO: Battle lines drawn in Switzerland over immigration
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Foreigners who have come to work in Switzerland since 2002, when the Free Movement of Persons Agreement (AFMP) between Bern and Brussels went into effect, have “strongly influenced the evolution of the population and the labour market in Switzerland,” the State Secretariat for Economic Affairs (SECO) said on Tuesday.
The AFMP "made it possible for Swiss companies to access the potential workforce from the EU area more easily. This was used primarily to cover the need for qualified, often specialised, skilled workers," SECO pointed out.
"Over the past 20 years, immigration from the EU has been essential to meet labour demand," the government body said, adding that workforce from the European Union has also "compensated for a replacement need linked to demographics."
This means that as more people retire and no new candidates for vacant jobs can be found in Switzerland, foreign workers are filling this gap.
The AFMP "has made it easier for Swiss companies to make use of the labour potential of the EU in order to meet, above all, the demand for qualified personnel,” SECO pointed out.
However, recruitment within the EU does not stop there.
It also extends to jobs requiring medium to low levels of qualifications, where no Swiss candidates are found.
Specifically, this is the case in sectors such as crafts and retail, in addition to industries which have traditionally employed many workers from abroad, including healthcare, construction, as well as hotels and restaurants.
SECO's report also noted that “due to sustained labour demand and a historically low unemployment rate," — and despite the high cost of living — "Switzerland remains attractive for foreign workers."
READ ALSO: Why do foreign workers flock to Switzerland?
In the future too, "further growth of the working-age population will continue to depend on immigration, even more so than currently," according to SECO. “The number of people leaving the employment market to retire tends to be higher than the number of incoming workers,” — a phenomenon which will further widen the deficit on the Swiss labour market, and where EU employees will be particularly needed.
Opposition is looming
Although the government as well as the business community are in favour of employees coming from the EU, some in Switzerland have spoken against this trend.
The populist Swiss People's Party (SVP), for instance, is taking a hard line against immigration.
The right-wing party has consistently spoken out against what it sees as too many foreigners in Switzerland.
But the SVP is taking things a step further by launching an initiative with the aim of limiting the population — foreign population, that is — of the country.
The anti-immigration campaign, which has been in the works for some time, calls for "No 10-million Switzerland", meaning the party wants to stop Switzerland from hitting the threshold of 10 million residents by 2050, as predicted.
Should this initiative go to the ballot box and be accepted, the Federal Council would have to terminate AFMP, tot he detriment of Switzerland’s economy.
Business lobby Ecoomiesuisse has last week released a statement saying that Switzerland is "in the midst of a demographic upheaval, the consequences of which are now becoming increasingly apparent".
The group also said that more people are retiring than young people entering the labour market.
"The resulting problems are serious if the development continues to be ignored."
READ ALSO: Battle lines drawn in Switzerland over immigration
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