"The Swiss labour market situation is characterised by certain specific findings: the highest employment rate of all OECD countries, the highest part-time rate (after the 'world-champion in part-time employment', the Netherlands), the largest proportions of foreigners (with the exception of Luxembourg), and one of the longest working times in Western Europe. The latter relativizes the high wage bills: for a high income people have to work a long time in Switzerland. It has to be stated critically that economic growth and productivity were mostly low in the post-war period. Just as critically, one has to remember that although progress has been made in the liberalisation of the product markets, a lot still remains to be done, e.g. in the telecommunications sector and in the agricultural market. There is not just one single cause that can provide an explanation for the still favourable employment market situation (unemployment rate 2002: 2.9 %). The interaction of different elements of the system and brave reforms are responsible for it. In summary, it emerges that in Switzerland the labour market is a market, more than is the case for example in Germany. Decision-making concerning wages is largely decentralised at the level of individual companies (there are no standardised industry-wide wage agreements). In addition, the principle of equivalence is strictly adhered to in social security. In contrast to Germany, there is a clear distinction between redistribution based on social-policy factors and insurance. The principle applies more strongly that justice should be achieved by means of direct (personal), tax-financed benefits aimed at the economically weak, and security should be achieved by making individual, contribution-financed provisions (e.g. health care system) with private insurance companies. As a result, the difference between gross and net is far smaller in Switzerland. One key factor of the Swiss labour market's amazing ability to react is also the decentralised organisation structure in politics (direct democracy), in society (federal state structure with a far-reaching autonomy of the communities e.g. as regards taxation and public services) and in the economy. In all areas, the formulation of demands and objectives is done in a bottom-up way. The consequences of actions (for example public services versus tax increases) are perceived and decided on the spot. The decentralised character is also seen in the labour." (author's abstract, IAB-Doku) ((en))
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