OECD report highlights challenges facing Swiss labour market

Switzerland should expand labour market participation to maintain high living standards, according to the Organisation for Economic Co-operation and Development (OECD).

In a report published on Thursday, the international body recommended Switzerland help more older, low-skilled and female workers into jobs and reduce gender gaps in working hours.

OECD Secretary-General Mathias Cormann said a more inclusive labour market could help ensure sustainable economic recovery following the Covid-19 crisis.

The Paris-based organisation also said lowering international and domestic barriers as well as “fostering the partnership with the European Union to sustain access to its market” were vital to revive productivity growth.

In its latest forecast the OECD said the Swiss economy was expected to increase 3% this year.

Resilient

As a result of its diversified economy and with the government’s financial aid, Switzerland had shown resilience to the Covid crisis, the OECD said in a statement.

Swiss Economics Minister Guy Parmelin said he was pleased to hear the OECD’s praise.

However, he said the crisis was not over yet and some business sectors, notably the tourism and entertainment industries, had been hit hard.

The government hadlaunched programmes to boost small and medium-sized companies, he added.