All conditions are reunited to ensure a promising stay for foreigners in Switzerland. Admittedly, the Swiss Confederation, responsible for estimating the economic situation for the Ministry of the Economy, is confident about a 2.8% economic growth, although it was expected at 3% before the war in Ukraine. The country has a robust economy despite an inflation rate estimated at 1.9%. Still, this is very far from the 7.3% in Germany or the 8.5% in the United States.
A thriving job market
The trend hasn't changed since the early days of the Covid pandemic. Since 2020, many foreigners, including students, graduates, employees, etc., have been relocating to Switzerland for various reasons. The most important reason, however, is the fact that the Swiss economy has resisted the global health crisis and continues to resist geopolitical constraints. The country's biggest strength is its labor market, which is doing well despite the situation in the rest of Europe. In fact, there has been a sharp drop in the unemployment rate over the past two years. Currently, it stands at barely 2.4%, i.e., the pre-Covid level. Another good news is that unemployment among the youth (-9.1%) and seniors (-6.4%) has also declined. According to the Swiss Job Market Index, there has never been such a high level of job creation in the country. In the first quarter of 2022, it had reached +47%. At the same time, the number of job vacancies is quite high. In the French-speaking part of Switzerland alone (it's the leading region for start-ups, innovation and research), there are more than 30,000 vacancies in various companies. In all of Switzerland, there are currently more than 100,000 vacancies in all sectors affected by the economic upturn. Some of them, such as construction, industry, health, wholesale trade, etc., are facing a labor shortage.
According to economists from the Credit Suisse research institute, there is a strong need for talent in the IT sector. In their opinion, it is the sector experiencing the most significant tension, along with the pharmaceutical industry and mechanical engineering. This could be one of the reasons why Switzerland has been attracting so many foreign professionals over the past two years. Internationally, the country is believed to have a solid economy despite crises and inflation, excellent quality of life, offering high wages compared to other economic powers, career prospects, etc. In experts' views, this Switzerland is experiencing a labor market boom in the post-pandemic era. This is likely to lead to brain gain, considering the country's high standard and competitive higher education system.
Internationally-renowned universities
International students are also attracted to Switzerland thanks to its world-famous universities and quality education. Paradoxically, the pandemic has put Swiss universities in the spotlight. While countries like Canada, the United States and France have seen the mass departure of international students over the past two years (nearly -45% for the United States), Switzerland has not. In fact, there was a 4% rise in its international student population in 2020. The year 2021 was marked by a 2.6% increase. Currently, international students account for more than 30% of students in Switzerland. Besides, 56% of the doctoral students are of foreign origin. One of the country's major assets is its internationally renowned schools, which are more affordable than American schools, for example. The École Polytechnique Fédérale de Lausanne (EPFL), for example, ranks among the world's best Grandes Ecoles.
These Grandes Ecoles are directly connected to the business world. Switzerland has recently increased its research and development budget by more than 20% to attract innovative companies and start-ups. And it works. According to the European Patent Office (EPO), Switzerland is, compared to its number of inhabitants, the country with the highest number of patent applications. It's worth noting that 16,567 patent applications were filed between 2020 and 2021. This only proves that the country keeps on innovating despite the health crisis. This emulation is particularly visible in French-speaking Switzerland, one of the most dynamic cantons (35% of patents).
Conclusion
In addition to its economic dynamism, the country has gained many points regarding the quality of life -- which is just as important as career prospects, especially since the pandemic. Expatriates in Switzerland are happy to live in such a pleasant atmosphere, with nature all around, plenty of spaces for relaxation, leisure activities and culture, child-friendly and family-friendly infrastructure, etc. No wonder why Switzerland ranks first in the latest HSBC report for expats' quality of life.
