Cross-border Workers Losing Jobs in Switzerland

Cross-border Workers Losing Jobs

              The pandemic of COVID-19 has caused the economic crisis throughout Europe, which is highly affecting cross-border workers, according to figures from period between March and September. Among those commuting to work from France, 13 percent of around 120,000 who work around Lake Geneva have lost their jobs, mainly in restaurant, hotel, construction sectors. These are, surprisingly, not seasonal or temporary cross-border workers, but permanent ones. Around 18 percent of cross-border workers from France registered as unemployed come from restaurant and hotel sectors, as Le Messager newspaper reports, with 13 percent from construction sector. Meanwhile in Ticino around 3,000 cross-border employees from Italy have lost their jobs already this year. The number is expected to rise to 4,000 by the end of December, according to a Ticino trade union. Altogether there around 70,000 Italian cross-border workers in Ticino.

Less Jobs on Swiss Market

              Rise in unemployment of cross-border workers should come as no surprise as Swiss labour market is offering less jobs due to the pandemic with general economic perspective quite pessimistic.  In the third quarter of 2020 there were 11,900 fewer jobs in the country than the same time last year, as the Employment Barometer made by Switzerland's Federal Statistical Office (FSO) shows. The data was collected before the second wave of the COVID-19 pandemic, and figures for the rest of the year are foreseen to be even worse. The most affected sectors are, again, hotel and restaurants, and manufacturing. The decrease of jobs offered was observed in almost all cantons, but mostly in Ticino that had the highest unemployment rate, of 1.5 percent. Other parts of countries reported 0.5 percent. Job offers plummeted by 15.1 percent in secondary and tertiary sectors. Only in Zurich and Lake Geneva the number of jobs went up – but just by 0.8 and 0.9 percent respectively.

Decrease in Wages

              Additionally, wages are decreasing in Switzerland as 34% of the population reported decline in income due to the coronavirus. The reason was either being laid-off or forced to work shorter hours. The data was reported by Le Matin Dimanche newspaper, based on a survey made in 24 countries by Intrum collection company. According to data, around 19% of Swiss, one in five, had to postpone the payment of at least one invoice this year, whereas last year it was 14.6%. Almost a quarter of surveyed people from Switzerland fear further decline in the coming future. Good news might be the fact that last month the federal government agreed to extend compensation for the short-time working and unemployment benefits.