Closing the Swiss talent gap

Looking abroad or enabling from the inside?

Despite a strong economy and solid labour market, Switzerland's changing demographics and growing talent gap signal challenges with finding workers.

Although the current economic downturn has led to notable easing, the skills shortage remains severe and continues to surpass pre-pandemic levels. The professions that continue to experience significant skill gaps include healthcare specialists, production managers, electronic technicians, engineering and comparable specialists, and finance experts. 

A glance at the Swiss job market

The Adecco Group's Q1 2025 Swiss Job Market Index revealed that, after a low point at the end of 2024, the Swiss job market showed the first signs of slight recovery in the first quarter of 2025, despite ongoing economic uncertainty.

Skills shortages driven by the coronavirus pandemic and demographic shifts have led to increased demand for young professionals, with job opportunities for this group rising significantly since 2020.

The proportion of all job advertisements aimed at young professionals grew from 21% in 2019 to 28.8% in the first quarter of 2025. It is notable that this proportion has continued to grow, despite the total number of job vacancies declining from mid-2023 onwards. 

Impact of language availability on the Swiss talent market

Adecco's analysis of language demand in Swiss job ads reveals that most vacancies require knowledge of German (87%), followed by English (32%), French (23%), and Italian (4%). Notably, more than a third of adverts mention two or more language combinations as a preferred option, which makes finding an ideal candidate even more difficult.

While some may argue that this language coverage is a natural reflection of Swiss demographics and it shouldn't be a challenge to find people speaking various languages in-country, it's not as simple as that. Such candidates are there and up for grabs, but there's not enough of them. The Swiss population is ageing and undergoing a big wave of baby-boomer retirement. The young worker pool of graduates currently entering the workforce is too scarce to cover the job demand.

Strategies for closing the Swiss talent gap

Facilitating cross-border labour

Hiring foreign nationals from neighboring countries can help fill the talent gaps in Switzerland. Countries like France and Italy, facing higher unemployment rates, have a pool of skilled workers who meet Swiss language requirements.

By easing cross-border employment processes, Switzerland can attract these candidates to fill critical roles, especially in regions where multilingualism is essential. This approach not only addresses immediate labor shortages but also enriches the Swiss workforce with diverse skills and perspectives.

Aligning education with skill demand

Switzerland's dual education system includes academic and vocational tracks. This distribution reached almost a 50/50 ratio over the past decade. More young people choose humanities, causing a shortage of engineers and technical experts. Clerical roles are most popular within the vocational route.

There aren't enough candidates for industrial and blue-collar training programmes. The disparity between education and skill demand is evident. Private enterprises and public institutions must collaborate to engage young people in essential professions. Schemes should showcase short-skilled sectors. They should give young people opportunities to learn about these professions. Younger workers are often unaware of the variety of professional routes available.

Boosting the potential of the resident workforce

Another strong front associated with solving the Swiss talent conundrum focuses on enabling underutilised in-country talent, including social welfare recipients. The Swiss authorities see a massive benefit in upskilling this cohort to help them reintegrate into the job market and stay there longer. Equipping the welfare beneficiaries with the metaphoric "fishing rod" is a systemic approach to adding them to the worker pool and consequently closing the talent gap.

Final thoughts

A comprehensive approach is essential. This involves not just sourcing talent when needed, but reevaluating and recalibrating the social ecosystem. By envisioning long-term strategies, we can shift the focus from merely finding and attracting candidates to strategically cultivating the required skills.

Embracing solutions such as facilitating cross-border labour, aligning education with market demands, and boosting the potential of the resident workforce will ensure a robust and adaptable talent pool. This holistic strategy will better prepare Switzerland to meet future labor market challenges and sustain its economic growth.