Wage development in Switzerland in 2022
2022 was a year full of challenges and changes for the Swiss labor market. Wage developments this year paint an interesting picture of the current economic situation. The nominal wage index rose, while real wages fell due to inflation.
Nominal and Real Wages: A Differentiated Picture
In 2022, nominal wages in Switzerland rose by an average of 0.9% compared to the previous year. This increase is in line with recent years, in which wage developments have been subject to fluctuations. For 2022, a real wage increase of 0.3% was agreed in most collective employment contracts, benefiting almost half a million employees.
Although nominal wages have risen, the picture for real wages is different due to the unusually high annual tax of 2.8%. These fell by 1.9%, which means a loss of purchasing power. This is particularly noticeable against the backdrop of increased costs for gas, oil, cars and rentals.
Sectoral Differences in Wage Developments
Wage developments were very different in the individual sectors. In Industry, nominal wages rose by 0.7% on average and thus somewhat weaker than the general increase. Wages rose particularly strongly in the areas of coking and petroleum processing (+4.0%), mechanical and automotive engineering (+2.0%) and mining and quarrying (+1.2%). In contrast, wages fell in industries such as the production of rubber and plastic products (-2.2%) and the manufacture of data processing devices and electrical equipment (-0.6%).
In the service sector, nominal wages rose by 1.0%, although there were significant differences between the individual sectors. While wages in insurance and information technology rose significantly (+2.7% and +2.4%, respectively), other industries such as postal and courier services as well as arts, entertainment and recreation recorded a decline.
Differences between the sexes
Interestingly enough, there was also a difference in wage development between men and women in 2022. Men saw higher nominal wage growth of 1.1% on average, while women saw an increase of 0.8%. The highest wage increases were among men in financial services and among women in freelance, scientific and technical activities.
Methodology and Interpretation Tips
The Swiss wage index, a Laspeyres index, is based on around 250,000 individual data submitted to the BFS by the Accident Insurance Statistics Collection Center (SSUV). The aim of the calculations is to measure the annual development of wages as the price of work. This involves maintaining the structure or weighting of a specific year over a period of five years in order to avoid distortions due to changes in the structure of employees.
It should be noted that some detailed results show statistical uncertainty and should therefore be interpreted with caution.
Conclusion
The year 2022 brought ups and downs for the Swiss economy and its employees.
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The source for this article is the Swiss Federal Statistical Office.
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