One in ten Swiss earns less during pandemic

The Covid-19 pandemic has hit lower income Swiss people in the pocket. © Keystone / Christian Beutler

The Covid-19 pandemic has diminished the earnings of 11.3% of the Swiss population, according to official statistics.

The negative impact on wages has been particularly severe for low-income workers (20%) and foreigners living in Switzerland (17%). More than a third of people working in the catering and hospitality sectors has seen a drop in income.

These more disadvantaged sections of society also had fewer opportunities to work from home, according to a study published on Wednesday by the Federal Statistical Office (FSO).

Conversely, the proportion of people who say they can make ends meet has risen from 48% to 58%. The FSO believes this is because many people have cut back on spending, particularly on leisure activities.

The findings highlight concerns that the world’s elite have gained from Covid-19, creating a wider inequality gap between themselves and those that started the pandemic with low levels of wealth.

Trade unions have previously denounced high-earning company managers of insulating themselves from the financial consequences of the pandemic at the expense of the lowest paid staff.

Feelings of job security also took a hit during the pandemic. Before Covid-19, more than two-thirds of Swiss employees felt their jobs were safe. During the lockdowns, this figure fell to 53% and has since risen to 60.5%.

People with higher levels of education or who enjoyed bigger wage packets felt more secure than lower income groups.

General satisfaction with life among the Swiss population has dipped, with the number of people reporting high levels of optimism falling from 40.7% pre-pandemic to 36.6% now.