Swiss shadow economy wanes

Income like tips might not be reported. Keystone

Unreported employment accounts for 6.9% of the Swiss economy, making Switzerland a model student compared to other countries.

This content was published on February 4, 2015 - 11:21 and agencies

Economist Friedrich Schneider of the University of Linz, Austria, predicts that in 2015, the figure will drop to 6.5% of Switzerland’s gross domestic product (GDP). As recently as 2009, it amounted to 8.3%, according to Schneider’s calculations.

The shadow economy covers everything from unreported income like cleaning and childcare to illegal employment and criminal activities. Schneider estimates that the amount of under-the-table work in Switzerland amounts to 427,000 full-time jobs.

Of the OECD countries, only the US has a lower rate of unreported employment: 5.9% of its GDP. In Britain it’s about 10%, and in Germany, France and the Scandinavian countries, the rate ranges from 12-13%. In countries hit by economic crises, like Greece, Italy, Portugal and Spain, the shadow economy accounts for 18-22% of GDP.

The predictions for Switzerland do not account for the exchange rate fluctuations between the Swiss franc and the euro.

This article was automatically imported from our old content management system. If you see any display errors, please let us know:

Share this story

Join the conversation!

With a SWI account, you have the opportunity to contribute on our website.

You can Login or register here.