Switzerland’s labor market is facing a dilemma where despite a low unemployment rate, there is a persistent shortage of labor across many industries.
This paradox, as analyzed by Deloitte, is further complicated by an ageing population that tends to favor part-time employment. There is also a decrease in confidence in employability among older workers who fear they may lack professional and technical skills in areas like IT and artificial intelligence.
When it comes to confidence in employability, “[J]ust under 60% of 18-34 year olds are confident, while only 45% of 50-64 year olds feel confident. Among the age group of 50-64 year olds a quarter even stated that they were not confident.”
The data reveals that, overall, the majority of those between the ages 18 and 64 who are still planning to work in the next five years, appear to be confident that they will fulfill new job requirements created by the rapid development of technologies like artificial intelligence (AI). Around 53% revealed that they are confident or very confident, and less than a fifth of the workers surveyed said they were not confident. Around a third remained neutral.
As Switzerland looks towards addressing issues that are impacting the future of its workforce, it also becomes important to bridge the demand for skilled labor with the workforce’s changing preferences for flexible schedules.
According to Deloitte, to overcome these challenges, Switzerland is exploring ways to make full-time employment more attractive to older employees. Proposed strategies include:
- Revising work models to offer greater flexibility.
- Providing continuous skill development opportunities.
- Offering childcare support to facilitate the transition from part-time to full-time roles.
The Swiss labor market’s unique position calls for innovative solutions that not only address immediate labor shortages but also considers the long-term effects of age demographic changes. Policymakers and businesses leaders are also called upon to address the negative impact part-time work can have on retirement savings — with the report highlighting pension reform as a potential solution to secure a better future for part-time workers.
