Protection of wages, safeguard clause, “citizenship directive”: the free movement of people is at the heart of the package of bilateral agreements III between Switzerland and the European Union (EU) which is the subject of a consultation procedure until the end of October.
If it is too early to know the opinion of interested circles, one thing is certain: since June 2002, the opening of our labor market to European immigration has been beneficial to the Swiss economy and companies. This positive assessment is corroborated by the last report of the observatory on the free movement of people between Switzerland and the EU, published on 1is Last July.
The study shows that the advantages of immigration from twenty-seven prevail clearly. Despite the pressure on the housing market, the free movement of people generates a dynamic of virtuous growth that strengthens employment, stabilizes social institutions and dampens the aging of the population.
EU nationals come to Switzerland mainly to work. With a employment rate of 86.8% in 2024, they actively participated in the Swiss labor market. This immigration does not compete with native workforce, but judiciously completes it. In other words, European workers do not exempt Swiss employees from the market. As proof: since the introduction of the agreement on the free movement of people, the unemployment rate has remained generally stable and permanently low.
EU nationals represent approximately 27% of the payroll subject to AVS contribution, but only perceive around 15% of the services
Marco Taddei
European immigration thus meets the labor needs of our companies which cannot be covered by indigenous staff in a context of acute staff shortage. Its level of qualification is high: more than half of the workforce from the EU since 2002 has graduated from higher education and more than 90% exercise a profession corresponding to this level of training.
The opening of the labor market has also proven to be positive for social insurance. The amount of contributions from EU nationals is significantly higher than the services they benefit from. According to calculations by the Federal Social Insurance Office, nationals of the twenty-seven represent around 27% of the wage bill subject to AVS contribution, but only perceive 15% of the services. This contribution is precious in a context of demographic aging.
The report of the State Secretariat for Economy (SECO) confirms, if necessary, the need for Switzerland to adopt bilateral III which update, by consolidating them, the rules of the free movement of people. In the absence of stable relations with the EU, it is not only the recruitment of qualified personnel that would be put to the test, but also the security of economic planning. In the absence of an alternative, the contingent system could make its return, with increased administrative constraints in its wake for companies.
