Immigration only partially alleviates lack of skilled workers

The pool of Swiss IT specialists is almost dry © Keystone / Christian Beutler

The Swiss economy has recovered well from the Covid-19 crisis, but despite the free movement of people agreement with the EU, some sectors are struggling to recruit qualified staff, says a government report.

The unemployment rate in spring 2022 returned to its pre-pandemic level for both Swiss and foreign employees, according to the 18th report of the Observatory on the Free Movement of Persons between Switzerland and Europe, published on ThursdayExternal link by the State Secretariat for Economic Affairs (SECO).

SECO focused on the IT sector, which it said had experienced particularly strong growth in recent years thanks to the digitalisation of the economy. The unemployment rate in the sector is very low (1.6%) and the pool of Swiss IT specialists is almost dry. Foreigners account for almost a third of the workforce, compared with 26% for the economy as a whole, it said.

SECO added that foreign immigration has made a significant contribution to meeting the demand for qualified personnel. What’s more, it’s often not possible to meet recruitment needs by hiring people from the EU within the framework of the free movement of people agreement.

Digitalisation is continuing and the need for specialists is high, SECO said, noting that demand is also increasing abroad and competition may become more intense. In these cases, immigration from third countries – such as the US, the UK or India – via the quota system is particularly important in order to attract those from further afield.

Good recovery

For SECO, recruitment difficulties are also an indication that the Swiss economy is doing well. The report concludes that the economy has recovered from the Covid crisis.

EU, EFTA and third-country nationals were meanwhile over-represented in the sectors particularly affected by pandemic restriction measures. They therefore felt the effects of the crisis more than the native population, SECO notes. Especially during the first months of the pandemic in 2020, the unemployment rate rose more sharply for foreigners than for Swiss.

On Thursday SECO also revealed that at the end of June 92,511 people were registered as unemployed, the lowest figure for 20 years.