Switzerland’s economy is known to strictly follow the First World Model, where the three most important sectors that are looked after are the agricultural sector, service sector, and industrial sector. The Swiss authorities are particular about all three sectors and are seen paying equal attention to all but the most developed out of all three is the service sector which adds around 72% to Swiss GDP. Switzerland also happens to be a dream destination for travelers from around the world. The landscapes, beauty, and lifestyle culture are all to die for and are why the country has around 11 million+ tourist visitors.
The past few decades have witnessed a steady yet promising growth of the Swiss economy adding reasons for international investors and the elite around the world to choose Switzerland as the safe place to invest their money. With a total population of 8.55 million, the unemployment rate here is comparatively low at 4.85%. The job market here is awesome. Inflation is visibly low, and the place is home to research laboratories like CERN, a dream place for many aspiring researchers. The literacy rate here is high; the research sector, automobile, transportation are all at their peaks in this country. Besides, the Swiss authorities have kept their doors open for all deserving intonation candidates and seekers.
Overview of Switzerland
According to World Bank GDP rankings, Switzerland holds 18th position (2020) in the list with a total of US $824 billion. The service sector contributes around 72% to Swiss GDP, followed by the industrial sector contributing around 27%. Lastly, the agricultural sector only contributes 1%. The uninterrupted financial growth in the country and a steady economy have caught the eyes of many foreign elites that further contribute to the Swiss economy.
Total Population - 8.55 million+
GDP – the US $660 billion
The country has done a commendable job tackling the pandemic with proper planning, restrictions on certain services, and supporting medical infrastructure. The country is now able to get back on its two feet and unlock many services so people can start working again. With a steady growth of 1%, which has not changed over the past many years, the country has managed to achieve a high Gross Domestic Product of US $660 billion.
Despite being affected by the pandemic, the Swiss GDP is suggested to grow 3.4% in the years to come. The emerging sectors in Switzerland are mechanical, electrical engineering, pharmaceuticals, finance, banking, tourism, and shipping.
A brief glimpse of the industries
- High-end watches and clocks are mostly exported from Switzerland. This export made around US $19.3 billion in the past decade which is an increment of 19.2% from the last year. 55% of these are exported to Asia, 14% to America, and 29% to Europe.
- The industrial sector here is quite extensive, and several leading companies are competing to keep their feet intact. The food processing industry, robot parts manufacturing, military equipment, chemical industry, and construction are the most noticeable industries here.
- According to the CIA World Factbook, trade-in Switzerland generates around US$308.3 billion from all the exports. Germany is the leading trade partner of Switzerland, followed by the US and then China. The country exports high-tech products with fine quality and high demand. Traditionally, the manufacture of automobiles is also prominent here.
- The contribution sector here is the agricultural sector. The main reason behind this is the decreasing popularity of the occupation in the country.
- The tourism industry is booming here, with the excellent hotels and natural beauty all adding to the popularity of the tourism industry. Around the US $14.9 billion is added to the GDP by the tourism industry.
Cost of Living in Switzerland
Switzerland is an expensive place to visit and is ranked highly in terms of expenses and living costs. But even though the country is expensive, a few things here are considerably cheaper if compared to their prices in North America, such as travel, hiking, and electronics. The most affordable cities to live in here are Uri, Glarus, and Obwalden.
Cost of Renting
The only downside of living in Switzerland is the high prices of the apartments. A high-paying job can bring a promising lifestyle, but still, the authorities, along with certain private companies, are trying to ease up the costs, especially for the expats. The rent of a one-bedroom apartment is around US $ 1,400, and that of a three-bedroom apartment is around US $ 2,700. Mentioned below is the cost of living in prominent cities of Switzerland.
Cost of living depending upon your location
Mentioned below is the average cost of living across the leading cities of Switzerland, with metropolitan and tier-1 cities being more expensive compared to tier-2 and tier-3 cities.
Top Skills required in Switzerland
There are a variety of skills that can fetch a person a decent job in Switzerland. The country produces high-tech products which show how skilled the workers are here and how particular the industries are in performance. Apart from this, the service sector heavily dominates the country, and thus skilled individuals are required to work here. Highly skilled technicians, researchers, professors, doctors, officers are all welcomed here.
Top Skills required in Switzerland:
- Engineering (automobile, electrical, etc.)
- Tourism (Hospitality, entertainment, etc.)
City wise average salary and occupations
Even though the country is beautiful and expensive, the resources here are widely distributed in various regions, cities, and towns. Thus, each city has its own value and requires individuals with the said skills suitable to live in that region.
- Zurich: It is the largest city in Switzerland and is the lifestyle capital there as well as one of the most expensive places to live. The annual average salary noted in Zurich is the US $128,657. The most popular occupations here are military officers, accountants, pilots, and vets.
- Geneva: It is second-most populous after Zurich, with a majority French-speaking community. The city is a financial center and also the diplomacy center in the country. The annual average salary here is around US $124,758. The most popular occupations here are available in the technology sector and the hospitality industry.
- Lucerne: The city holds the majority German-speaking population of Switzerland and is surrounded by many lakes. Lucerne also has a Chapel Bridge, the first one erected in the 14th century. The annual average salary here is around the US $118,455. A few popular occupations here are IT, academics, health care, tourism (hospitality), and many more.
When employers are looking to hire new employees, they must be prepared to cover the cost of hiring. As the process is a lengthy one, there are various factors that contribute to determining the hiring cost -
- Onboarding and training expenses
- Interview process and cost involved
- Orientation expenses
Salaries in Switzerland
Variety of job profiles available in Switzerland along with the expected average salaries are mentioned below: -
Employment laws in Switzerland
Switzerland enjoys fairly relaxed labor laws, but that is determined by the provisions of the below mentioned laws and acts: -
- Code of Obligations
- The Labour Act (and its regulations)
- The Data Protection Act
- The Merger Act and
- the Ordinance against Excessive Compensation
- Terms agreed in the contract of employment
- The Participation Act
- The Gender Equality Act
How Can Skuad Help You with Hiring in Switzerland?
Conducting your hiring processes in Switzerland can be a tiresome task with various steps involved. When your efforts can be utilized more productively elsewhere, then you must not waste your resources on conducting recruitments. Skuad’s unified employment solution can help in conducting recruitment processes. Connect with Skuad to know more.