Fostering a strong labour market to support the recovery and sustain growth in Switzerland
Switzerland has a well-functioning labour market with low unemployment, a highly skilled
workforce and well-paid jobs. It has proved resilient during the COVID-19 crisis,
helped by extensive government support to employment and incomes. As activity recovers,
the authorities face the challenge of adapting support measures to avoid hindering
job reallocation and productivity growth while ensuring adequate support to vulnerable
firms and workers. The pandemic has also reinforced certain pre-existing challenges.
The already sizeable gender pay gap risks widening, and older workers face a higher
risk of long-term unemployment. Making the labour market more inclusive would help
the recovery and raise productivity. Switzerland would benefit from bringing under-represented
groups more effectively into the labour market. Raising skills and lowering inequities
in education and training will also be essential to facilitate job transitions and
ensure that workers and firms benefit from technological change and the digital transformation.
Published on July 04, 2022
In series:OECD Economics Department Working Papersview more titles