One of the richest nations on earth is feeling the middle class squeeze these days, according to new research by Avenir Suisse, a Swiss think tank for economic and social issues.
The study shows that between 1994 and 2010, the Swiss middle class lost ground compared with the lower and upper classes. Key reasons are fewer mid-range jobs and greater demand for people with lower or higher qualifications. A successful apprenticeship no longer guarantees a place in the middle of Swiss society.
Data from Euromonitor International shows that Swiss household incomes have grown about 60 percent since 1994, fueled in large part by women joining the country’s work force. About 77 percent of Swiss women work, 55 percent full-time.
But the increase comes at a cost. Often, the addition to the household’s income pushes the family into a higher tax bracket. Additional work-related expenses such as childcare can put an additional strain on the budget.
If you’re thinking about moving to Switzerland, you should also know there is a sharp contrast between established residents who have owned or rented homes for some time and newcomers to the market who have been affected by the dramatic increase in real estate prices and rents. Boom regions like Geneva and Zurich have the highest property prices, but even in the low-wage cantons where the cost of living has increased faster, purchasing power has been eroded, says the International Service of the Swiss Broadcasting Corporation.
In the end, though, it’s not just the money that has the Swiss middle class feeling blue. The Avenir Suisse study says it’s really about the self-image of an educated middle class that finds the borders to the lower income classes increasingly blurring.
Welcome to the new world of economic reality, Switzerland.