This Survey is published on the responsibility of the Economic and Development Review Committee of the OECD, which is charged with the examination of the economic situation of member countries.

The COVID-19 pandemic continues to raise uncertainty and challenges. Infections started rising steeply again at the end of 2021 and the emergence of a new variant has clouded prospects for a rapid exit from the pandemic. The vaccination campaign accelerated once again thanks to booster shots, but the share of vaccinated remains below many OECD peers. Major constraints on economic life were largely lifted in the course of 2021, boosting economic activity, but uncertainty remains high.

Switzerland has a well-functioning labour market with low unemployment, a highly skilled workforce and well-paid jobs. It has proved resilient during the COVID-19 crisis, helped by extensive government support to employment and incomes. As activity recovers, the authorities face the challenge of adapting support measures to avoid hindering job reallocation and productivity growth while ensuring adequate support to vulnerable firms and workers. The pandemic has also reinforced certain pre-existing challenges. The already sizeable gender pay gap risks widening, and older workers face a higher risk of long-term unemployment. Making the labour market more inclusive would help the recovery and raise productivity. Switzerland would benefit from bringing under-represented groups more effectively into the labour market. Raising skills and lowering inequities in education and training will also be essential to facilitate job transitions and ensure that workers and firms benefit from technological change and the digital transformation.