Switzerland’s biggest party has decided that the country only has room for 10 million people — just as businesses struggle to fill vacancies.
The controversy over immigration and population growth is framing the country’s elections next month. Yet, about 40 percent of businesses say they have difficulties hiring more staff, according to a survey by the KOF economic research center, up from a long-term average of below 10 percent.
This stands in stark contrast with the flagship proposal of the Swiss People’s Party (SVP), which holds more than one-quarter of seats in the lower house: a constitutional amendment that seeks to prevent the resident population from surpassing 10 million before 2050, from today’s 8.9 million.
Photo: Reuters
The party proposes to curb population growth if that threshold nears, by limiting immigration, especially from asylum seekers. KOF says the 10 million threshold would be crossed around 2035.
With elections set for Oct. 22, the campaign is resonating with voters. One in three Swiss say immigration is a key concern, according to a recent poll, and SVP is set to further increase its share.
Foreigners already make up one-quarter of Switzerland’s population, yet even a 26 percent jump in new arrivals last year was not enough to satisfy labor demand.
Asylum seekers only make up 6 percent of new arrivals, and, at 2.1 percent, unemployment remains near a record low.
“Lack of workers is the most relevant new issue for firms, and will likely stay with us for years to come,” said Jan-Egbert Sturm, who heads the KOF center at ETH Zurich university.
Switzerland’s high-wage labor market regularly taps the surrounding EU for workers. A treaty in force since 2002 allows citizens from the bloc to freely come for work — subject to some exceptions.
The government’s success in luring multinationals such as Alphabet Inc’s Google has helped propel home prices in Zurich past the levels of London and Paris. The left-wing Social Democratic Party wants to cut subsidies for international companies.
KOF estimates that, without immigration, Switzerland’s working age population would shrink by about 13 percent in the next 20 years, while the number of older people would increase, putting stress on the social security system.
“The Swiss labor market grows strongly above its demographic potential,” said Boris Zuercher, labor head at the State Secratariat for Economic Affairs within the economy ministry.
The country “has to make sure it stays attractive,” Zuercher added.
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