Free movement of people and access to workers from third countries

Its flexible labor market is one of Switzerland’s strengths, but access to skilled and top-level workers from abroad is not. In addition to exploiting the potential of the domestic labor market, the free movement of persons within the EU and access to workers from third countries are therefore crucial.

Agreement on the free movement of persons with the EU

Switzerland and the EU concluded the Agreement on the Free Movement of Persons (AFMP) in 1999. The AFMP allows EU/EFTA nationals to live, work, and study in Switzerland under certain conditions. The same conditions apply to Swiss citizens in relation to EU/EFTA countries. Immigration to the labor market is the main focus here.

In 2004, the EU adopted the Citizens’ Rights Directive (CRD), which extends the rights of residence for EU nationals within the EU. The CRD regulates the right of EU citizens to move and reside freely within the territory of the member states. However, it does not grant any political rights, in particular the right to vote or stand for election.

In September 2020, the Swiss population strongly rejected the popular initiative “For moderate immigration” (Limitation Initiative), and thus made a clear commitment to the free movement of persons between Switzerland and the EU.

In the course of the negotiations on the package for the stabilization and continuing development of relations between Switzerland and the EU, the contracting parties agreed to adopt the CRD on a tailor-made basis for Switzerland. A protective mechanism with exceptions and safeguards as well as a safeguard clause protects the Swiss wage level, and is intended to ensure that immigration from the EU remains labor market-oriented.

Access to workers from third countries (non-EU/EFTA)

In addition to skilled workers from Switzerland and the EU, skilled workers from third countries offer further potential for meeting the demand. The so-called third-country quotas are, however, limited and, based on their criteria, they are reserved primarily for management positions. Considering the different economic structures of the cantons, the distribution formula for these quotas also needs to be revised to enable easier needs-based distribution among the cantons. Simplified processes are intended to help quickly and efficiently meet the industry’s demand for highly qualified specialists. This is the only way to keep the industry competitive in the pursuit of skilled workers.