Why is the number of cross-border workers in Switzerland growing?
Each year, more and more workers from neighbouring countries commute to their jobs in Switzerland. Why is this?
At the end of March, there were nearly 400,000 G-permit holders employed in Switzerland — 4.3 percent more than during the same period in 2023.
And over the past five years, their number has increased by 21.8 percent.
This is what emerges from new data published by the Federal Statistical Office (FSO) on Monday. .
A little more than half of this workforce (57.4 percent) comes from France, and works mostly in Geneva and Vaud, with some also employed in Jura and Neuchâtel.
Over 23 percent live in Italy and work predominantly in Ticino, and 16.2 percent travel from Germany to Basel and other northern cantons.
Why is their number growing steadily?
It is a mutually beneficial arrangement in that it brings advantages to both sides: the workers earn higher wages than they would in their own countries, while Swiss companies get employees needed for jobs they can’t fill with local workforce.
In terms of wages, “salary differentials between Switzerland and neighbouring countries obviously play a major role in attracting cross-border workers, because remuneration here is approximately twice as high as in France, Germany and Italy,” according to Giovanni Ferro-Luzzi, professor of economics at the University of Geneva.
Not only do cross-border workers earn more money in Switzerland, but they also pay lower taxes here than they would in their home countries, so it's a win-win situation.
What about the employers?
“We clearly cannot do without them,” said Fabienne Fischer, who is charge of Geneva’s Department of the Economy and Employment
“We saw this during the coronavirus pandemic: it was essential to put in place a whole series of exemptions from the health measures to authorise these workers to cross the border and allow Geneva to continue to function,” she said.
Geneva is the canton with most cross-border commuters, but this message is echoed elsewhere in Switzerland as well.
“The Ticino economy is heavily dependent on cross-border workers,” according to Rico Maggi, economist in Lugano.
“And other cantons rely on these employees as well,” he added.
READ ALSO: Who can work in Switzerland but live in a neighbouring country?
Comments
See Also
At the end of March, there were nearly 400,000 G-permit holders employed in Switzerland — 4.3 percent more than during the same period in 2023.
And over the past five years, their number has increased by 21.8 percent.
This is what emerges from new data published by the Federal Statistical Office (FSO) on Monday. .
A little more than half of this workforce (57.4 percent) comes from France, and works mostly in Geneva and Vaud, with some also employed in Jura and Neuchâtel.
Over 23 percent live in Italy and work predominantly in Ticino, and 16.2 percent travel from Germany to Basel and other northern cantons.
Why is their number growing steadily?
It is a mutually beneficial arrangement in that it brings advantages to both sides: the workers earn higher wages than they would in their own countries, while Swiss companies get employees needed for jobs they can’t fill with local workforce.
In terms of wages, “salary differentials between Switzerland and neighbouring countries obviously play a major role in attracting cross-border workers, because remuneration here is approximately twice as high as in France, Germany and Italy,” according to Giovanni Ferro-Luzzi, professor of economics at the University of Geneva.
Not only do cross-border workers earn more money in Switzerland, but they also pay lower taxes here than they would in their home countries, so it's a win-win situation.
What about the employers?
“We clearly cannot do without them,” said Fabienne Fischer, who is charge of Geneva’s Department of the Economy and Employment
“We saw this during the coronavirus pandemic: it was essential to put in place a whole series of exemptions from the health measures to authorise these workers to cross the border and allow Geneva to continue to function,” she said.
Geneva is the canton with most cross-border commuters, but this message is echoed elsewhere in Switzerland as well.
“The Ticino economy is heavily dependent on cross-border workers,” according to Rico Maggi, economist in Lugano.
“And other cantons rely on these employees as well,” he added.
READ ALSO: Who can work in Switzerland but live in a neighbouring country?
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.