Temporary work in Switzerland continues to grow (cross-border guide)

Context

Briefly,

• Temporary work hours increase by 1.5% in the first half of the year.
• Permanent placements decrease by 19.4%.
• 79% of agencies already use artificial intelligence.

Key facts

• What: Increase in temporary work
• When: First half of the year (compared to the previous year)
• Where: Switzerland, Swissstaffing data
• Who: Swissstaffing, CEO of associated agencies
• Amount: +1.5% temporary hours, -19.4% permanent, 79% AI, 33% growth forecast

Swissstaffing report data

Swissstaffing, the recruitment agency association, published the first half data on Wednesday. Temporary workers' hours increased by 1.5% compared to the same period last year, a sign of a rebound after three years of declines. At the same time, permanent placements fell by 19.4%, reflecting the uncertainty of the Swiss economy.

Marius Osterfeld, Swissstaffing's chief economist, explained that Swiss industrial production showed a positive trend at the beginning of the year, despite the slowdown in the Iran war. This generated an increase in demand for temporary work in the industrial sector and a 'slight increase in working hours'.

The introduction of artificial intelligence is one of the main novelties: 79% of respondents claim to already use AI, especially to increase efficiency and improve recruitment processes. Furthermore, the surplus of candidates (in some cases over 100 for a position) makes AI a crucial tool for selection.

Finally, 33% of CEOs of Swissstaffing-affiliated companies expect an increase in activity in the next six months, provided that geopolitical events do not worsen further. These data provide a clear picture of the temporary work market, a segment that directly affects the border workers of the Canton Ticino, who often resort to term contracts to cover peaks in demand.

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Operational details

Implications for Ticino border workers

The increase in temporary work hours has concrete repercussions for Ticino border workers. A 1.5% increase in hours worked indicates a greater availability of job openings, especially in industrial sectors that have benefited from increased production. For those already in possession of a G permit, this can translate into a wider range of job opportunities, reducing dependence on indefinite contracts, which currently show a decline of 19.4%.

From a tax perspective, border workers continue to pay source tax only in Switzerland, as established by the 1976 Double Taxation Convention. The new tax agreement, effective January 1, 2024, confirms this method, avoiding double taxation. Therefore, the increase in temporary contracts does not immediately affect the tax burden, but requires proper management of the pay slip, with the related AVS (5.3% for the employee) and LPP (7-18% depending on age) deductions.

The widespread use of AI (79% of agencies) changes the way job applications are evaluated. Border workers who present a digital CV must ensure that their data is structured in a clear manner, as selection algorithms favor easily readable information. A candidate can receive more than 100 requests for a single position; the ability to stand out becomes crucial.

One-third of CEOs expects further growth in the next six months, suggesting that demand for temporary work may continue to rise, but this depends on geopolitical developments. For border workers, this implies the need to constantly monitor job offers on work platforms and maintain up-to-date professional profiles.

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

How to act: a practical guide for border workers

1. Update your CV – Insert skills related to the use of digital tools and, if possible, highlight experiences with artificial intelligence software. Many agencies now filter applications with algorithms, so a clear presentation is essential. 2. Check your permit – If you have a G permit, check that it is still valid and that the usage conditions have not changed. You can do this at the Migration Office of the Canton Ticino or online through the cantonal portal. 3. Calculate the net – Use our salary calculator to estimate your net income taking into account the withholding tax, AVS/AI/IPG (5.3%) deductions, and LPP contributions. This will help you compare temporary offers with permanent ones. 4. Monitor job offers – Subscribe to the newsletters of recruitment agencies affiliated with Swissstaffing and regularly check job portals dedicated to border workers. Temporary positions tend to close quickly due to the high number of applications. 5. Evaluate social benefits – Although temporary contracts do not guarantee the same continuity of contributions, AVS payments are still mandatory. Check with your employer if LPP contributions are also made, especially if you are over 25. 6. Prepare documentation for tax declaration – At the time of declaration, remember that Swiss income is subject to withholding tax, but you can request the Italian tax credit to avoid double taxation. Keep pay slips, payment receipts, and any unemployment certificates.

Source: tvsvizzera.it