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The State Secretariat for Economic Affairs (Seco) had good news this week: in 2023, Switzerland recorded an average unemployment rate of 2.0 percent, the lowest in more than 20 years.
The annual average number of registered unemployed people was 93 thousand 536, and the number of job seekers was 160 thousand 87. For comparison: During the Corona years 2020 and 2021, approximately 230,000 people were looking for work in this country.
Fewer job seekers mean less effort for regional employment centers (RAVs); It can be thought so. But Seco figures reveal a different picture: job placement costs have fallen significantly less than the number of unemployed and job seekers. Therefore, the average RAV expenditure per job seeker has increased significantly.
Seco estimates that the total cost of job placement for 2023 will be approximately 470 million francs. This works out to 2,936 francs per job seeker. In 2022, this value was similarly high, at 2,915 francs. But in previous years there was significantly less spending. From 2013 to 2021, the average expenditure per job seeker was less than 2,400 francs.
Increased support from employers increased RAV costs
Have RAVs been unnecessarily inflated after the pandemic?
Seco explains this development by, among other things, saying that RAV’s consultancy and placement work is more complex in phases when unemployment is very low. “In times like these, there are more than average registered job seekers with relatively low employability,” says media spokesman Fabian Maienfisch. Caring for them takes more time, which increases the number of staff needed per job seeker and therefore costs.
Another reason is the intensification of inter-institutional cooperation. Maienfisch: “Thanks to closer cooperation with other social security institutions, an increasing number of people from social assistance and immigration authorities have been appointed to RAV for labor market advice and placement in recent years.” This group of people also required high levels of care.
RAV has also increased its employer recommendations in recent years. “RAVs were primarily aimed at job seekers, but in recent years RAVs have become increasingly geared towards the needs of employers,” says Maienfisch.
RAV’s services included, among other things, answering employer questions, publishing reported vacancies, and candidate recommendations and placements.
Increased support from employers in filling vacant positions also increased RAV’s costs.
Seco believes that this additional effort will be worth it and that job seekers will ultimately benefit from this commitment.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
