Of the recent economic developments in Switzerland, the increased unemployment level deserves special attention. In the 1990s Switzerland's long tradition of low (almost nonexistent) unemployment was broken. Although still below the levels experienced in most industrialized countries, Switzerland's recent higher unemployment rate has caused speculation about the causes of this unusual (for Switzerland) economic phenomenon. The objective of this paper is to investigate the behavior of the unemployment rate in Switzerland by utilizing the simplified Phillips curve relationship. This concept illustrates the tradeoff between unemployment and inflation. The rate of unemployment (or the rate of change of unemployment) and the rate of change of wages are negatively related. When unemployment is low, employers tend to bid up wages in an effort to attract qualified workers. During periods of high unemployment, this type of bidding is unnecessary; and therefore the rate of growth of money wages is lower. Observing how well the model explains the jobless rate allows us to speculate about the causes of increased unemployment in Switzerland. It can also be determined whether increased unemployment represents a structural change in Switzerland's economic environment or if it is the effect of a temporary change in the growth rate of aggregate demand, or perhaps a change in the behavioral patterns of the economic agents.

Switzerland is a small country with rich cultural and geographic diversity. The Swiss unemployment rate is low, at around 4%. The rate has remained at that level since the year 2000, despite a massive increase in the foreign labor force, the Great Recession, and a currency appreciation shock, demonstrating the Swiss labor market's impressive resiliency. However, challenges do exist, particularly related to earnings and employment gaps between foreign and native workers, as well as a narrowing but persistent gender pay gap. Additionally, regional differences in unemployment are significant.

This open access book examines the economic, social, and psychological consequences of manufacturing plant closure at the individual level. Using an original data set of over 1,200 workers from Switzerland who lost their manufacturing jobs after the financial crisis of 2008, the author analyzes the determinants of reemployment, the sector of reemployment, and the change in wages over a two year period. In addition, coverage also explores how plant closure affects the social relationship between a displaced worker and his or her significant other, which includes a discussion of the coping strategies on the household level as well as how changes in a worker's social and occupational life affects overall satisfaction. Readers will discover that the burden of structural change disproportionately falls on the shoulders of workers aged 55 and older who often face substantial barriers when trying to return to employment. A larger portion of this group experience long-term unemployment and those who do manage to find a new job often suffer disproportionate wage loss. This result is intriguing in the context of the current demographic change and contradicts the common assumption that young and low-qualified individuals are at greatest risk of unemployment. Advanced age—and not low education—appears to be the primary obstacle to workers finding job satisfaction after being laid off because of market conditions.

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.

Switzerland is universally respected for its highly successful economy. It has long enjoyed low unemployment and inflation, and an exceptionally satisfactory transition process for youngsters from school to work. This book provides a nuts-and-bolts comparison of how this successful transition is brought about. It explains the different emphases of Swiss secondary schooling by focusing on the way in which both academic and practical subjects are taught. The different ways in which career guidance and intervals of work experience are handled in the two countries are also considered.