Labor shortage continues
After the shortage of skilled workers in Switzerland reached a peak in 2022, there are few signs of easing in 2023. Despite declining growth momentum due to the current economic slowdown, the shortage of skilled workers has risen by 24%, reaching a new record level.
Recruiting staff remains a challenge for companies. Jobs for healthcare specialists, IT specialists and engineering specialists in particular are still difficult to fill. This is shown by the Swiss Skills Shortage Index of the Adecco Group Switzerland and the Swiss Job Market Monitor of the University of Zurich.
After the skills shortage index rose sharply in 2022 due to the economic recovery following the lifting of the coronavirus measures, the shortage of qualified workers will become even more acute in 2023. Despite current economic challenges, ranging from inflation and the strength of the Swiss franc to a weakening global economy and growing global uncertainties, there is still no sign of the skills shortage easing.
The growth rate of the skills shortage index is falling due to the weaker economy - while the growth in 2022 was still 69%, the growth in 2023 is only 24%. Despite this, the index has reached a new high. This development is primarily due to two factors: Firstly, the number of job seekers decreased significantly, causing the unemployment rate to reach a low of 2% in 2023. Secondly, the number of job vacancies rose by 7% compared to the previous year. The primary driver of this development appears to be the domestic sector. While export-oriented sectors of the economy are struggling with falling global demand, domestically oriented sectors, such as the hospitality industry, have largely been able to rely on robust domestic demand. This also explains why domestically oriented sectors are still planning to expand their workforce despite the economic slowdown. "The current overheated labor market is mainly the result of the strong economic recovery that began after the coronavirus measures were lifted and significantly boosted demand for skilled workers. Although the subdued economic outlook for the coming year and the visibly decreasing momentum of the Skills Shortage Index suggest an emerging easing phase in the short to medium term, the shortage of skilled workers will continue to concern companies in Switzerland in the long term. Influencing factors such as the ageing population, advancing digitalization and the transition to a green economy will continue to drive this development in the future," says Marcel Keller, Country President at Adecco Group Switzerland.
Shortage of skilled workers in healthcare and technical professions
As in the previous year, the following occupational groups have the most acute shortage of skilled workers: specialists in the healthcare professions (qualified nurses, endocrinologists or pharmacists), developers and analysts of software and IT applications (SAP consultants, software engineers or ICT quality managers) as well as engineering and comparable specialists (mechanical engineers, heating planners or microsystems engineers). While the shortage of qualified professionals for specialists in the healthcare professions and engineering and comparable professionals has worsened compared to the previous year, the situation for developers and analysts of software and IT applications has eased significantly.
"The turbulence in the IT sector has left a clear mark on the job market for developers and analysts of software and IT applications. Not only has the number of vacancies fallen significantly, but the number of job seekers has also risen sharply. This development is also reflected in the unemployment figures for the IT sector. In September 2023, the number of unemployed grew by an impressive 44.8% compared to the same month last year ("The situation on the labor market" - Swiss Confederation). As a result, the shortage of skilled workers for this occupational group has eased significantly compared to the previous year," says Yanik Kipfer, Job Market Monitor Switzerland at the University of Zurich.
Technical professions in particular are strongly represented in the top 10 of the skills shortage ranking. This reflects the focus of Swiss industry, which specializes in the production of complex, technically demanding niche products with high added value. The latest quarterly survey by the industry association Swissmechanic underlines this trend. In the third quarter, SMEs in the mechanical, electrical and metal industries identified the shortage of technical staff as one of their biggest challenges.
The shortage of skilled workers in technical professions is not limited to occupational groups that require a tertiary education, such as a university degree, a degree from a university of applied sciences or training at a higher technical college. It also extends to occupational groups that primarily require a vocational apprenticeship. In addition to engineering and comparable skilled workers, there is also an acute shortage of skilled workers for electricians and electronics technicians, polymechanics, production mechanics, machine mechanics and fitters.
Skills shortage is increasingly turning into a general labor shortage
Occupational groups at the lower end of the ranking predominantly show an oversupply of skilled workers. Here, there are more applicants than vacancies. In last place are unskilled workers, which include window cleaners, road markers and movers. They are followed by managers and then general office and secretarial staff and other office workers, which includes occupations such as clerks, HR clerks and proofreaders.
This year, the diverging developments between the occupational groups stand out in particular: while the oversupply of skilled workers in the occupational groups in the lower half of the ranking is noticeably reduced, the shortage of skilled workers in the upper half remains largely stable. This means that the shortage of skilled workers is increasingly turning into a general labor shortage. Even in occupational groups with lower qualification requirements, such as unskilled labor, the oversupply of skilled workers has been greatly reduced. This also makes it increasingly difficult for companies to recruit these workers.
"What we are experiencing on the Swiss labor market today is an actual labor shortage and no longer a shortage of skilled workers. Even in professions where there is no acute shortage of skilled workers, it is becoming increasingly difficult to recruit new employees. In the catering industry, for example, competition for trained chefs or qualified service staff is becoming increasingly fierce. In order to find workers and specialists, companies must become innovative and make better use of the internal labor market as well as consider foreign workers. The potential of the internal labour market can be better exploited, for example, by investing in training, retraining and further education, the use of career changers, making working conditions more flexible or the targeted use of temporary employees to build up internal expertise," adds Martin Meyer, Head of Adecco German-speaking Switzerland.
Shortage of skilled workers in German-speaking Switzerland is increasing sharply
The shortage of skilled workers has increased significantly in both German-speaking and Latin Switzerland compared to the previous year. While the shortage of skilled workers in German-speaking Switzerland increased by 28%, Latin Switzerland recorded a smaller but still significant increase in the shortage of skilled workers of 14%.
The stronger increase in German-speaking Switzerland is the result of a more significant decrease in jobseekers (-16%) and a moderate increase in vacancies (+8%). In contrast, Latin Switzerland showed a more moderate decline in jobseekers (-10%) and only a slight increase in vacancies (+3%) compared to the previous year. This indicates that the labor market in German-speaking Switzerland has developed much more dynamically than that in Latin Switzerland.
Source: www.adeccogroup.com
