Cost and size of bureaucracy has increased in Switzerland

Administrative expenses have increased in the Swiss agglomerations Keystone-SDA

Swiss municipalities employ more and more staff. An analysis by the Institute for Swiss Economic Policy (IWP) at the University of Lucerne shows that the number of administrative positions per inhabitant has risen sharply, particularly in suburban municipalities.

Between 2011 and 2022, the number of administrative offices per inhabitant in these metropolitan areas rose by 15.6%. In rural municipalities, the growth was 12.9%, in the core cities 9.7%, as the IWP announced on Wednesday. In the same period, suburban areas also saw the highest increase in personnel expenditure, with a rise of 13.5% per inhabitant. In rural municipalities, expenditure rose by 6.6%, in cities by just 2.6%.

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Nevertheless, cities still have the largest number of employees and the highest personnel expenditure per inhabitant. The cities included in the IWP analysis employ an average of 19.6 people in full-time positions per 1,000 inhabitants. In the agglomeration municipalities, there are less than half as many at 9.6, and even fewer in rural municipalities at 7.7.

The urban centres are also ahead in terms of personnel expenditure: they spend an average of CHF2,545 (about $3,095) per inhabitant. In rural municipalities, the figure is CHF 2,205 and in suburbs it is CHF1,798.

Urbanisation as a reason

The researchers attribute the strong growth in suburban municipalities to the fact that urbanisation has taken place in these areas. The researchers explained that many state services can be provided particularly cost-effectively – i.e. with lower expenditure per capita – up to a certain, optimal number of inhabitants. However, if this size is exceeded, the costs per capita rise again. This is because, for example, municipal politics becomes more professionalised in the form of a municipal parliament or because administrative processes become more bureaucratic.

But also because cities are taking on centre functions that are associated with increased expenditure. For example, expenditure in areas such as culture, sport and leisure has increased in suburban municipalities.

Adapted from German by DeepL/ac

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