Zurich’s economy faces major challenges
The canton of Zurich, like Switzerland as a whole, is facing profound demographic changes. The decline in the proportion of the working population and increasing ageing pose considerable challenges for the labour market and the economy. A new study shows that even a high level of immigration can only mitigate the effects of demographic change, but not stop it.
The so-called labour market gap, the ratio of people entering and leaving the labour market, is increasingly becoming a problem. For some years now, more people have been leaving the labour market for age-related reasons than young workers are joining. In 2029, the canton of Zurich will have around 16 % more 65-year-olds than 20-year-olds, while the difference across Switzerland is 30 %. Although the gap could narrow again briefly in the 2030s, an even greater difference is expected from the 2040s onwards.
Immigration alone is not enough
Study results show that even immigration at twice the average rate of the last 10 years could not compensate for the decline in the labour force. Without immigration, the labour market gap would widen even more dramatically, with an annual deficit of over 5700 people by 2050. The proportion of the working-age population in the canton of Zurich is expected to fall from 63% to 59% by 2050 – a development that will also affect economic performance and the dynamics of the labour market.
Zurich’s economy better positioned than Switzerland as a whole
Thanks to Zurich’s attractiveness as a place to work, live and train, the canton of Zurich is in a better position than Switzerland as a whole. The proportion of the labour force here is falling less sharply than the national average. However, Zurich is not immune to the effects of demographic change.
Solutions and strategic measures
Director of Economic Affairs Carmen Walker Späh emphasises the importance of strategic measures to overcome the labour shortage. Making better use of the domestic labour force potential, for example by integrating women and older workers more strongly into the labour market, plays a central role. Equally important is increasing productivity, which can be achieved through technological innovation and progress. In addition, adjustments to the retirement age could help to utilise the labour force potential for longer.