Since the Agreement on the Free Movement of Persons (AFMP) with the EU came into force on 01. June 2002, thereby lifting restrictions on EU citizens wishing to live and work in Switzerland, the population of Switzerland has grown from 7.31 million in 2002 to around 9 million today.
The Free Movement initiative was further enhanced by the mutual recognition of professional qualifications. This meant that workers previously restricted from entering Switzerland to work, (due to non-recognition of foreign qualifications by the Swiss authorities), were free to enter the country to work after 01 June 2022. But with a population growth of just over 1.5 million or nearly 21% in 20 years, how did Switzerland cope in terms of housing availability, jobs and health services ?
Unemployment vs open positions
Switzerland was traditionally known as a zero unemployment country. Since 1980 (1.92% unemployment), the highest unemployment rate recorded was in 2021 after the Covid pandemic (5.10%).
- The unemployment rate in Switzerland in January 2002, stood at 2.4%. Looking at the same statistic for June 2024, the rate of unemployment was 2.3%.
- Switzerland has a highly-diversified economy with strong clusters in life sciences, Pharma, ICT, advanced engineering, finance, banks & insurance, commodity trading and watchmaking. It also has a prolific start-up scene, supported by the top-ranked EPFL and ETH Universities and other support organisations and associations.
- With low unemployment and a healthy corporate and start-up scene, the need for skilled workers in Switzerland remains strong. With the AFMOP – skilled workers from the EU/EFTA are able to find well paid job opportunities in Switzerland.
- In terms of vacancies Switzerland is currently facing shortages in 41 occupations, with healthcare one of the most affected sectors. In fact nursing professionals emerged as the most sought after professions in Q1/24 , with nearly 6,400 published vacancies.
- Further, a study published by the University of St. Gallen and Advance in September 2023 found that there is a severe shortage of skills in Switzerland and it may get worse as Baby Boomers retire. Additionally, the Gottlieb Duttweiler Institute (GDI), reports that even with a moderate influx of 50,000 skilled professionals annually, up to 400,000 positions could go unfilled by 2030!
A growth in any country’s population of over 20% in such a short time period, could put a serious strain on support services such as accommodation, transport and health. How is Switzerland managing the situation?
Accommodation
At the end of 2022, 2.4 million or 61% of households in Switzerland lived in a rented or cooperative dwelling. The urban cantons Basel-Stadt and Geneva had the highest proportion of rented dwellings at 83% and 78% respectively, whereas the cantons of Valais, at 41% and Appenzell Innerhoden, at 43%, had the lowest.
Finding Rental Accommodation – Finding accommodation in Switzerland can be challenging depending on location, but on the positive side, there are numerous search and comparison websites for accommodation rental and purchase. These also offer complimentary services such as financing and rental guarantee facilitation as well as reference sections offering information about which areas or towns are best to live from a tax and services perspective. Try www.immoscout24.ch, www.homegate.ch or www.comparis.ch as a start.
Buying an apartment or house – Since the introduction of the AFMOP initiative, foreigners in Switzerland with a valid permit are permitted to purchase property, but buyer beware! Banks require a deposit of at least 20% with 10% of that being in cash. The median price for apartments on the market in Switzerland is CHF 790’000. The asking price for 80% of properties falls between CHF 393’700 and CHF 1’870’000. The average price per m² in Switzerland is CHF 8’497 / m².
What are the best areas to find accommodation? Generally speaking it is more difficult, and more expensive to try and rent accommodation in city centres, no matter what area or canton. Moving to a smaller town or even village within commuting distance of the workplace makes sense for families and nature lovers. Switzerland is a relatively small country and with excellent transport links, it is fairly easy to commute to work. Remote work is also now more accepted (at least for part of the week, and depending on sector and job role).
Hotspot areas where it may be more difficult to find affordable living accommodation include: Zurich, the canton of Vaud Geneva and Bern.
Transport
Switzerland has one of the most dense and efficient transport networks anywhere in the world. A vast network of coordinated train, bus, tam and boat links, mean that there are not many places that are easily accessible via public transport.
- Double decker trains have gone a long way to combating the increased demand in rail transport. Although the strategy to solve bottlenecks by increasing frequency has worked so far, some experts are now calling for a different strategic approach.
- Combined with Under the Rail Outlook 2050 programme, rail services will be improved primarily on short and medium routes, for example with additional suburban rail services and upgrades to suburban stations following trends such as working from home.
- With the rapid growth in population and changing trends in the way people work and live, a synchronised Government Initiative called The Transport Outlook 2050 predicts what the transport landscape could look like in the next 30 years, taking into account the important social and economic trends.
Health Services
- Fewer young doctors in Switzerland are choosing to become general practitioners. This combined with an increasing population, means that there are now fewer GP’s per capita now compared to 2002. The trend continues to point downwards, although the situation in individual cantons differs.
- Hospitals – As mentioned, Switzerland is facing shortages in 41 occupations, with healthcare one of the most affected sectors. Nursing professionals emerged as the most wanted professions in the first quarter of 2024, with nearly 6’400 published vacancies. Again, demographic and lifestyle trends also contribute to this, along with a growing population. There are numerous initiatives in place at different levels to combat these trends.
Summary
Since the AFMOP Act came into force in 2002, there has been a rapid growth in the population of Switzerland. During this period, over 1.5 million people have moved to Switzerland to live and work, with the majority (76%) coming from the EU/EFTA. This has lead to some service bottlenecks with an increased demand for transport, housing and health services.
However, Switzerland is a country that prides itself on the quality of its infrastructure and way of life. To this end, a number of strategic initiatives have been launched, such as the Government mandated Transport Outlook 2050, and other expert groups working on sustainable projects.
Switzerland has a vibrant and leading global economy. The industries that operate out of Switzerland require skilled and specialist workers, many of whom move to Switzerland from the EU/EFTA as part of the AFMOP initiative. With predictions that the population will reach the 10 million mark by 2050, all the skills, expertise and efficiency of the Swiss will be required to ensure the housing, transport and health services can keep up with the growing population.
Swissroll GmbH was founded over 20 years ago. During this time our team of experts has worked with hundreds of companies and literally thousands of contractors. Also cross border workers. Beyond our core function of payroll management, we offer advice to workers about which engagement model best suits theirs, and the client’s needs. This includes giving advice in French, German and English and on social security, tax as well as working remotely and what to do in the when looking for accommodation. Call or contact us now on: enquiries@swissroll.ch
Michael is a celebrated strategic Marketing and Business development expert with decades of experience and achievements under his belt. He has extensive commercial knowledge in the relocation and travel industry and has specialised in highly individual customer facing services.
As a Swiss national Michael has a broad experience of Switzerland.
