“We estimate a shortage of around 460,000 full-time employees in ten years”

Switzerland focuses on high-quality, specialized industrial goods instead of mass production. A high level of innovation, strong research networks such as ETH Zurich and EPFL, low bureaucracy and a stable political environment make it an attractive production location. The strong franc is forcing companies to increase efficiency, which raises competitiveness in the long term. Competitive pressure also helps to keep companies agile, and this agility helps them navigate difficult market conditions. In addition, the international networking of the industrial sector creates resilience, as companies are not reliant solely on the domestic market. And — as President of the Employers’ Association, I must emphasize this — we have active social partnership in Switzerland: We look for industry-specific solutions, and we find them. This contributes significantly to the stability and competitiveness of Switzerland and the Swiss economy.

The first things that come to mind are bureaucracy — of which we clearly have too much — and digitalization, or rather the use of new technological possibilities. Switzerland is highly competitive today because it excels in innovation, quality and efficiency and offers a stable environment. It is crucial that companies continue to focus on high technology, specialized industries and research and development. This requires close collaboration between universities, industry and start-ups. A reliable and costeffective energy supply is likewise vital. Switzerland is also an open economy in terms of language, culture and general outlook: An open trade policy with reliable international partners and secure access to the European single market are equally essential.

For Switzerland to remain competitive, it is vital that the framework conditions for companies remain attractive. Bureaucracy has been steadily increasing in recent years. However, to ensure that companies are not hindered by excessive regulation, they need more freedom, not less. Otherwise, only the number of unproductive administrative jobs will increase, while companies that create added value will be burdened even further. Other relevant issues include the tax burden on companies and employees, which must not be allowed to increase any further, a flexible labor market that meets the needs of the economy, and a stable relationship with the EU so that Swiss companies have guaranteed access to the single market. It is also particularly important to safeguard the labor force, both by making the best possible use of domestic labor potential — including high-quality training and further education — and through targeted immigration to Switzerland.

Yes. The increasing labor shortage threatens to slow down growth, and the uncertainty in relations with the EU could deter companies from investing in Switzerland. In addition, increasing regulation could burden companies and restrict their ability to innovate.

Together with Economiesuisse, we have developed a scenario that forecasts the development of labor supply and demand and the labor shortage over the next ten years. The estimate on supply is based primarily on the medium population scenario from the Federal Statistical Office. The calculations show that by 2035, domestic supply will decline by around 297,000 full-time employees compared with today. On the other hand — and assuming that labor productivity increases at a steady rate — an additional 163,000 full-time employees would be needed for prosperity to continue growing at the same pace as in recent years. In summary, the business community estimates that there will be a shortage of around 460,000 full-time employees in Switzerland in ten years’ time.

Both. There is a clear shortage of skilled workers in highly qualified professions such as IT, engineering and healthcare, as the demand for specialized workers exceeds domestic supply. At the same time, however, there is also a general shortage of workers in occupations with lower qualification requirements, such as in the catering and construction sectors. This labor shortage is exacerbated by demographic trends, as more and more workers are retiring and there are not enough young people joining the workforce.

Compared with many EU countries, nonwage labor costs in Switzerland are moderate. While in Germany or France they are often over 30 percent of gross wages, in Switzerland they are significantly lower at 15 to 20 percent. The comparatively low non-wage labor costs are an advantage for Swiss companies. However, they often have to offer higher net wages to attract qualified workers — mainly due to the generally high wage level and the cost of living in Switzerland. What worries me is how social welfare programs are being rolled out across the board — and the funding issues that come with them. The 13th OASI pension payment will cost billions and will burden all of us, regardless of how it is financed. And the next costly expansion is already lined up with the Center Party initiative calling for higher pensions for married couples. Again, it’s not clear how this will be paid for. We must not allow the burden on labor to continuously increase, otherwise Switzerland will become less attractive as a business location and less competitive.

A general, legally prescribed reduction in working hours is neither economically viable nor necessary. Anyone who wants to work part-time can already do so today. On the other hand, the uniform and legally prescribed maximum working hours currently in place ensure that the health of employees is protected. A general reduction in working hours would also have to lead to a reduction in wages. This would increase the likelihood that employees would have to look for a second or third job to make ends meet, which would increase the burden on them. The labor shortage would worsen, wage costs for employers would rise, employee wages would fall, and international competitiveness would suffer.

Yes, the current regulations in labor law are too inflexible in some areas. Companies and their employees need more leeway to respond to economic fluctuations and individual employee needs. For example, it would make sense to extend the time frame within which the daily work of, say, eight hours can be completed. This means that people still do the same amount of work, but can take short breaks and then continue later. This could be achieved by extending the so-called daily time frame, as is currently being discussed in parliament: Employees would have a time frame of 17 hours to complete their daily target working hours — instead of the current 14 hours. This gives employees and companies more flexibility in how they organize their working hours.

The average annual working hours of employees have fallen over the last few decades, partly because part-time work has increased. However, there is a countereffect because the proportion of workingage people in employment has increased, as more women are active in the labor market than before. According to the FSO, overtime decreased between 2010 and 2023. Productivity has increased overall, particularly due to automation and technological advances. Nevertheless, there are differences between sectors: While industry is investing heavily in efficiency gains, there is less productivity growth in the service sector.