What is the activity rate of EU/EFTA workers compared to the Swiss?

In 2025, the activity rate of EU/EFTA immigrants between the ages of 15 and 64 was 87.3% (men 90.1%, women 83.6%), while that of the Swiss was 84.8% (men 87.1%, women 82.5%).

How does immigration affect the AVS system?

EU/EFTA immigration is beneficial for AVH as EU/EFTA citizens pay 28 per cent of the wage contributions allocated to AVH and AI, benefiting to a lesser extent (11 per cent) from supplementary benefits, as they often leave Switzerland before retirement age.

What impact has immigration had on GDP growth?

The Swiss economy has experienced real GDP growth of 1.8% per annum over the past 15 years. This development was supported by an increase in the volume of work provided, equal to 0.8% per year, made possible exclusively by immigration in the face of a decrease in the Swiss population of working age.

Free movement: the real impact on the labour market (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 11 August 2026

People working in a modern office in Switzerland

The 22nd SECO report analyses the role of EU/EFTA immigration: employment rates and economic growth to 2026.

Context

In a nutshell

EU/EFTA immigration responds to the structural needs of the Swiss market.
Foreign workers support economic growth and the maintenance of the AVS.
Real GDP grew by 1.8% per annum in the fifteen-year period 2010-2025.
The EU/EFTA activity rate reached 87.3% in 2025.

Key facts

What: 22nd report of the Observatory on the free movement of people
When: 25 June 2026
Who: Dry
EU/EFTA activity rate: 87.3%
Real GDP growth: 1.8% per year
Increase in volume hours: 0.8% per year

On 25 June 2026, the SECO published the 22nd report on the Free Movement of Persons Agreement. The analysis confirms a direct correlation between immigration and employment dynamics. With an ageing population seeing the retirement of thousands of baby boomers, the input of foreign labour has become the mainstay of AVS funding. Between 2010 and 2025, health and social care integrated 90,000 EU/EFTA workers, compared to 162,000 Swiss residents.

"Free movement acts as a stabilizer for Swiss competitiveness in an increasingly demanding global market"

Employment and sectoral dynamics

The manufacturing industry remains the engine of the system. In the pharmaceutical hub of Basel-City and Basel-Country, more than 50% of the workforce comes from the EU/EFTA area. Similar situation in the Neo-Castilian watchmaking district and

Operational details

Free movement: the real impact on the labour market

The 2025 statistical analysis highlights significant differences in labour market participation rates. EU/EFTA immigrants (15–64 years) show a higher propensity for activity than Swiss citizens. The EU/EFTA activity rate stands at 87.3% (men: 90.1%, women: 83.6%), against 84.8% of Swiss (men: 87.1%, women: 82.5%). The average employment rate is also higher: 89% for EU/EFTA foreigners compared to 81% for Swiss.

Effects on growth and well-being

High participation counteracted demographic change. Between 2010 and 2025, the volume of work grew by 0.8% per year, driven exclusively by immigration, given the decline in the working-age resident population. This ensured real GDP growth of 1.8% per annum and 0.8% per capita. In economic hubs such as Zurich or the Canton of Zug, the influx of highly skilled labour has allowed the maintenance of structural unemployment rates below 2%, ensuring the sustainability of key sectors such as pharma and fintech.

The integration of foreign workers has acted as a complementary rather than a substitute pillar for our economic system.

The growth of female participation is a constant. SECO confirms that immigration has not curbed the internal potential or increased

Useful planning tools

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Key points

The integration of EU/EAA workers has positive structural effects on social insurance, particularly for the AVS. The report highlights that EU/EAA citizens pay 28% of the salary contributions destined for AVS and AI. Since these people often leave Switzerland before retirement age, their share of complementary benefits is limited to 11%. This positive balance is crucial for the system's sustainability in a demographic aging phase, especially in cantons like Zurich or Geneva, where foreign labor input is a pillar of the tertiary economy.

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Source: seco.admin.ch

Frequently Asked Questions

What is the activity rate of EU/EFTA workers compared to the Swiss?: In 2025, the activity rate of EU/EFTA immigrants between the ages of 15 and 64 was 87.3% (men 90.1%, women 83.6%), while that of the Swiss was 84.8% (men 87.1%, women 82.5%).
How does immigration affect the AVS system?: EU/EFTA immigration is beneficial for AVH as EU/EFTA citizens pay 28 per cent of the wage contributions allocated to AVH and AI, benefiting to a lesser extent (11 per cent) from supplementary benefits, as they often leave Switzerland before retirement age.
What impact has immigration had on GDP growth?: The Swiss economy has experienced real GDP growth of 1.8% per annum over the past 15 years. This development was supported by an increase in the volume of work provided, equal to 0.8% per year, made possible exclusively by immigration in the face of a decrease in the Swiss population of working age.