In Switzerland, the line between employment and poverty is increasingly blurred. Nearly one in three individuals receiving social assistance is currently employed, according to data from the Conference of Swiss Institutions for Social Action (CSIAS). This figure highlights a growing trend where holding a job no longer guarantees financial independence, as the share of these “working poor” rose from 28% in 2018 to 33% in 2023.
Did You Know? The prevalence of temporary work in Switzerland has surged significantly, with a 60% increase recorded over the last thirteen years, according to an analysis by the Association for Social Action in the French-speaking regions and Ticino (Artias).
Drivers of the Working Poor Phenomenon
The rise in individuals relying on social assistance despite being employed is largely attributed to the nature of modern employment contracts. Low-skilled workers, as well as those employed on an hourly basis or through on-call arrangements, are the most affected groups. In sectors like fast-food service, part-time work and hourly wages are common, contributing to the instability of household incomes.
Labor organizations have identified the proliferation of temporary contracts and hourly-paid positions as a primary cause for this insecurity. This ongoing flexibilization of the labor market is viewed as a significant factor in the rise of the “working poor,” as it prevents many employees from achieving a stable, predictable income.
Expert Insight
Expert Insight: The data suggests a structural shift in the Swiss labor market that prioritizes flexibility over financial security for the worker. When one-third of social welfare beneficiaries are already active in the workforce, it indicates that current wage levels and labor models may be failing to meet the basic cost of living. The policy challenge here involves balancing the need for business agility with the societal necessity of ensuring that a full-time or consistent part-time job provides a living wage.
What May Happen Next
Given the current findings, it is likely that labor unions will intensify their push for systemic changes. There is a clear demand for higher wages and more robust contract structures that guarantee sufficient activity rates for workers. If these demands remain unmet, the reliance of the working population on social assistance may persist or continue to climb as the gap between earnings and living costs remains unbridged.
Frequently Asked Questions
Who is most impacted by this trend?
The most affected groups are low-skilled workers, as well as employees who work on an hourly basis or are employed on-call.
How has the proportion of working social assistance beneficiaries changed?
The proportion has increased from 28% in 2018 to 33% in 2023, according to figures from the CSIAS.
What do labor unions propose as a solution?
Unions are calling for higher wages and increased activity rates that would guarantee a sufficient income for workers to live without needing to access social assistance.
Do you believe the current labor market model in Switzerland requires legislative intervention to protect the most vulnerable workers?
