Liechtenstein had the 2nd highest per capita GDP worldwide in 2019. The country lacks natural resources but has developed into a highly industrialized economy. As a result, it has one of the highest per capita income levels globally. However, the nation did not rank in the Index of Economic Freedom in 2021; the primary contribution was the lack of adequate specific data about the country’s economy.
According to the latest figures from the Office of Statistics, nearly 98.2% of the population makes up the country’s workforce. Traditionally, the unemployment rate in Liechtenstein has been low. Over 60% of the employed persons work in the services sector. The financial services sector in Liechtenstein is well-developed, and under 40% of the jobs are in the industrial sector. The major contributor to its economy is its manufacturing sector. Thus, Liechtenstein is one of the most highly industrialized countries across the globe. Even though agriculture is the primary sector, it records only 0.8% of the employed. Less than 25% of companies have reported a talent gap due to disruptions from the market and technology.
Overview Of Liechtenstein
Population - 38,378 (2019)
GDP - $6.215 billion (FY20)
According to Trading Economics macro models and analysts, Liechtenstein’s GDP Annual Growth might reach 3.50% by the end of 2021. The country’s economy witnessed a 4.95% increase between 2017-2018. Experts predict that Liechtenstein’s GDP might hit USD 6.10 billion by the end of 2021. Based on various global models, experts say that the same is expected to reach USD 6.30 billion by the end of 2022. The government was quick to adapt to the pandemic and have softened the blow to the economy by adopting quick and efficient measures.
Liechtenstein’s economy and demographics, along with the dynamics of its economy, make it a good place for marketers to invest. Moreover, the predicted growth in GDP is a good sign for the development of local industries and increasing employment. However, the talent gap with the citizens needs to be bridged with the help of vocational training institutes. This is essential for nurturing talents and for them to become a part of the upcoming revolution.
A Brief Glimpse Into The Industries In Liechtenstein
- Liechtenstein, Monaco, and San Marino are the only European countries without a tax treaty with the United States. The low corporate tax rates helped draw in large industries, turning it into one of the wealthiest countries.
- Liechtenstein is one of the few nations that has more registered companies than the entire population. This goes to show the extent of industrialization in Liechtenstein.
- The chief industries are electronics, metal manufacturing, dental products, financial services, food products, tourism, and many more.
- Liechtenstein’s national economy has a high employment rate. However, the government is focusing on promoting sustainable economic growth by implementing extensive measures.
- The country has several specialized high-tech companies whose pressing demand for qualified specialists is not fulfilled owing to Liechtenstein’s size and population. Therefore, these companies actively hire remote employees.
- Liechtenstein has one of the fastest broadband connectivity around the world. The average speed is 229.98 Mbps, the average download speed is 204.43 Mbps, and the average upload speed is 159.33 Mbps.
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Cost Of Living
The cost of living index is used to calculate and compare the average expenses of a person in a particular region. These include expenses on food, shelter, transportation, education, healthcare, energy, clothing, childcare, and entertainment. Comparing the cost of living indexes before moving is a good idea. A significant point to consider is that the cost of utilities might vary from region to region. To get an idea of the average cost of living in Liechtenstein, refer to the following table. The cost is estimated monthly in USD.
Living Expense Breakdown In Categories
The average cost of living in Liechtenstein is $2245, making it the fourth most expensive nation to live in. The country has also ranked 72nd best country to live in out of 197. When compared to the global average cost of living, living in Liechtenstein is 3.05 times more expensive.
Top Skills In Liechtenstein
From all the economic models, analyses, and plots, it is quite evident that Liechtenstein’s overall market is stable. Despite the global deterioration of the economy due to the Covid-19 pandemic, Liechtenstein’s market risk remains relatively low. The unemployment rate is also low, as the country is highly industrialized. Owing to this, freshers, as well as experienced citizens, can find several job opportunities in the country.
The major industries contributing highly to the country’s GDP and employment rate are:
- Banking and Finance Service Providers
- Imports and Exports
- Equipment Manufacture
- Transportation Services
Top City-wise Skills In Liechtenstein:
For a brief idea about the top skills in Liechtenstein based on the city, have a look at the table below:
Vaduz is the national capital and principal industrial center of Liechtenstein. Most job opportunities are in manufacturing, tourism, healthcare, industrial services, imports and exports, and banking and finance sectors. The country’s economy is one of the prime reasons companies choose to expand their establishments to Liechtenstein. The country has beautiful, picturesque cities which provide plenty of opportunities to boost tourism. Only 1-2% of the population engages in farming even though food manufacturing and processing companies are one of the major stakeholders in the economy.
Before starting the hiring process, it is important to consider the average cost per hire. Some companies have their in-house HR department, which could prove expensive for a company in the long run. Alternatively, some companies hire global HR platforms, like Skuad, for the remote recruitment process. Here is a list of the factors that primarily contribute to the hiring cost:
- Job or recruitment fairs
- Additional hardware or software for ease of candidate screening and recruitment
- Marketing expenses
- Training and onboarding expenses
- Travel costs
- HR recruiter costs and health benefits
The average cost of living in Liechtenstein is USD 2245 or 2068.54 CHF. However, renting a one-bedroom in Liechtenstein costs USD 857.52 or 790 CHF. These costs increase drastically when a company employs an HR team. To cut down these additional expenses, companies outsource HR teams for their remote hiring process. Firms such as Skuad help to do exactly that!
Salary Structures For Various Roles
The following table lists the average salary one can expect in each of the top industries in Liechtenstein.
From the statistics, it can be concluded that the average monthly salary of a person working in Liechtenstein is 5310 CHF.
Employment Laws In Liechtenstein
- The employment laws in Liechtenstein are liberal. These allow companies extensive flexibility.
- Companies can individually shape employment contracts while following the legal guidelines.
- The public employment law stipulates mandatory minimum regulations, such as working and rest hours. These can be modified only if they benefit the employee.
- Individual employee contracts can be made orally. However, written contracts are highly suggested.
- In the case of collective employment agreements, there are fixed working hours, holiday entitlements, minimum wages, and employee benefits. Minimum wages are updated every year.
- Medical benefits and compensations are provided as required.
How Can Skuad Help You In Hiring In Liechtenstein?
Hiring in Liechtenstein is a multi-faceted task requiring in-depth knowledge of the laws, trends, hiring costs, living costs city-wise, and more. Skuad comes onboard as a one-stop solution handling every minute aspect of recruitment. It gives you the freedom and time to focus on your project and expansion plans without any hiring stresses. Connect with Skuad experts to know more.