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Why are some foreign workers in Switzerland at higher risk of unemployment?

Helena Bachmann
Helena Bachmann - [email protected]
Why are some foreign workers in Switzerland at higher risk of unemployment?
Foreigners in Switzerland are twice as likely to be unemployed as naturalised Swiss. Photo by Sebastiano Piazzi on Unsplash

Most people from the EU or EFTA countries who work in Switzerland have no reason to worry about their employment — their risk of losing their jobs are equal to their Swiss counterparts’. There are, however, exceptions.

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Switzerland’s unemployment rate — currently less than 2 percent — is lower than in many other countries.

This means the labour market is solid and stable, and most employees, whether Swiss or foreign nationals, don’t have to worry about losing their jobs.

In fact, a recent report by the State Secretariat for Economic Affairs (SECO), noted that “due to sustained labour demand and a historically low unemployment rate, Switzerland remains attractive for foreign workers".

READ ALSO: How EU immigrant workers have become 'essential' for Switzerland

However, the same report also points out that some EU nationals "are exposed to a higher than average risk of unemployment".

SECO goes on to specify that most-affected workers are from Southern and Eastern Europe, as opposed to those from the eurozone states.

The reason, according to SECO, is that many workers from these countries — for instance, Bulgaria, Romania, and Balkan nations — "often occupy unstable jobs, including seasonal work", such as agriculture.

More of these foreigners show up in unemployment statistics not only due to the temporary nature of their work, but also because neither Swiss workers nor those from the eurozone usually hold the types of jobs that are more predisposed to redundancy.

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What happens when these employees lose their jobs?
 
Everyone working in Switzerland legally has the same right to collect unemployment benefits — regardless of nationality.

The general rule is that anyone who has contributed to the social insurance scheme, is entitled to receive unemployment benefits.

However, not everyone will receive the same amount for the same length of time.

If, for instance, you have a settlement permit C or a residence permit B, you will receive unemployment benefits, as long as you have been employed in Switzerland for at least 12 months in the last two years and have been living in the country full time during that period.

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For how long the benefits will be paid out depends on your circumstances.

If you have worked — and paid into the social security system — for 12 months in the past two years, you are entitled to 260 days’ worth of unemployment allowance.

If you are under 25 and childless, you will receive compensation for 200 days.

In the case that you had been employed for at least 18 months, you will collect for 400 days.

Older workers or those suffering from a disability can collect for 120 additional days.

READ ALSO: Which foreign workers are entitled to unemployment benefits in Switzerland?

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