Demand for skilled workers declines due to Corona crisis

Between 2016, when the shortage of skilled workers was measured for the first time as part of the Skilled Workers Shortage Index Switzerland, and 2019, the shortage of skilled workers has increased every year. In 2020, the index decreased for the first time, by 17%. This is shown by the Skilled Worker Shortage Index of the Adecco Group Switzerland and the Job Market Monitor Switzerland of the University of Zurich. COVID-19 has changed the situation on the Swiss labor market very quickly. In most professions, the number of vacancies is decreasing, while the number of job seekers is increasing. Nevertheless, there is still a shortage of skilled workers in various professions. "The first wave of the Covid-19 pandemic unsettled companies. They were hesitant to hire new staff or, at times, did not hire at all. In the second wave, by contrast, they can build on their experience. They are now recruiting more staff again despite the restrictive measures," comments Monica Dell'Anna, CEO of Adecco Group Switzerland.

Travel restrictions cause mobility of skilled workers to decline

The demand for skilled workers is not falling everywhere. Luca Semeraro, Head of Professional Recruitment, explains: "The Corona crisis has done little to change the shortage of skilled workers in professions such as engineering, IT, technology or medicine. We experience on a daily basis how intensively companies are looking for specialists in these areas. In some cases, it is very difficult to recruit suitable personnel. For example, the regional mobility of specialists has decreased due to the uncertainty caused by travel restrictions. But even in professions that are generally not affected by a shortage of specialists, there is a shortage of many specialists in some areas." Corinne Scheiber, responsible for Adecco Medical, specifies, "Well-trained nursing professionals, especially those specializing in intensive care, are currently in high demand."

In occupations where the oversupply of skilled workers was already particularly high in 2019, the situation for job seekers is becoming even more acute as a result of the Corona crisis. More and more job seekers are meeting fewer and fewer vacancies. "The unemployment rate is high right now. In customer-oriented service occupations such as hospitality or sales, the situation has become particularly acute compared to last year. It is currently difficult for job seekers in these professions to find work again. This is because the number of vacancies has decreased and competition from the increasing number of other job seekers is high," says Helen Buchs from the Job Market Monitor Switzerland at the University of Zurich.

Skills shortage despite Corona

The need for skilled workers remains particularly high in the professions of human medicine and pharmacy. They will continue to experience a high shortage of skilled workers in 2020. These occupations recorded a large increase in vacancies before the "lockdown" in March 2020 and maintained this level afterwards. Thus, while there are more job seekers in these professions in 2020 than there were in 2019, there are also more vacancies. According to Corinne Scheiber, "Doctors are still in high demand. Among other things, the population is getting older and there is therefore a need for sufficient medical staff, regardless of economic crises. At Adecco Medical, for example, we are seeing an increase in requests in the fields of geriatrics and gerontopsychiatry, as well as in emergency medicine."

Digitization means that more and more information technologies are being used on the labor market and therefore IT skills are needed. This is reflected in the still great demand for skilled workers in IT occupations, where there is a shortage of skilled workers despite the Corona slump. Semeraro comments, "The results of the Skilled Worker Shortage Index Switzerland 2020 underscore the assessment of the ICT Vocational Training Switzerland association: the number of ICT jobs is significantly higher than the number of corresponding unemployed. The pace of change in IT is rapid. Companies are always on the lookout for new qualifications. Job seekers are often a small step behind."

Demand for skilled workers in the service sector down sharply

It is noticeable that there is a large oversupply of skilled workers in various professions with rather low qualification requirements in the service sector. Compared to 2019, the number of vacancies has continued to decrease and unemployment has continued to increase. The Corona crisis is therefore hitting these professions particularly hard. As expected, the number of job seekers in hospitality occupations is also rising, while at the same time fewer new staff are being sought here.

The greatest oversupply of skilled workers in 2020 will be in the commercial professions. These professions have suffered particularly from the Corona crisis. Indeed, the number of vacancies has decreased significantly. Semeraro says: "The Corona crisis has once again boosted the automation and digitization processes in the commercial and administrative professions. In addition, new recruits are being cut here in emergency situations, because jobs in the commercial area usually do not lead directly to income. But outsourcing and general downsizing are also likely to play a role in the oversupply."

The oversupply of skilled workers is also very pronounced in the cleaning, hygiene and personal care occupations. Unlike other occupations at the bottom of the ranking, however, the oversupply has not changed much as a result of the Corona crisis.

German-speaking Switzerland: Shortage of skilled workers index falls by -21%

In summary: In German-speaking Switzerland, the Skilled Worker Shortage Index Switzerland is falling more sharply than in French- and Italian-speaking Switzerland. Nevertheless, the Swiss-German Skilled Workers Shortage Index is above the average for Switzerland as a whole. In engineering in particular, the demand for skilled workers among companies in German-speaking Switzerland remains high, as the number of vacancies here has only fallen slightly. Engineering occupations occupy first place in the ranking. In 2020, commercial and administrative occupations simultaneously recorded fewer vacancies and more job seekers than in the previous year. Because they now have the greatest oversupply of skilled workers in terms of the numerical importance of the occupation, they now occupy last place in the ranking.

Source: Spring Professionals (a company of the Adecco Group)