Federal Statistical Office reports higher labor costs
The Federal Statistical Office published an interesting statistic at the end of August. In it, labor costs (reference year: 2016) vary according to economic sector and company size.
The Federal Statistical Office (FSO) distinguishes these costs not only according to economic sector, but also according to company size. In the secondary and tertiary sectors, the FSO determined costs of 60.05 francs, which is the average cost of an hour of work in Switzerland. This is more than in the last survey in 2014, when the hour still cost 59.60 francs. Once again, the cheapest hour worked in 2016 came in the hospitality sector at 36.68 francs.
Different labor costs
Labor costs are all expenses borne by the employer. In Switzerland, 79.9 percent of these costs are gross wages. Employers' social security contributions account for 16.9 percent. The costs of vocational training and personnel recruitment account for 3.2 percent.
Employees at financial and insurance service providers lead the cost table. They incur 92.10 francs per hour. The financial industry is followed by information and communication with 77.95 francs per hour and professional, scientific and technical services with 76.50 francs. In addition to the hospitality industry, labor costs in the tertiary sector were also low in arts, entertainment and recreation (53.01 francs) and in other scientific services (44.99).
Differences in company sizes
Labor costs also vary according to company size. In the secondary and tertiary sectors, the cost per hour worked was 25.8% higher in companies with 50 or more employees (Fr. 64.50) than in small companies with fewer than ten employees (Fr. 50.35). This result is mainly due to the large differences in income levels, as wages and salaries were on average 22.8% higher in companies with 50 and more employees than in small companies.
However, this disparity is not observed in all sectors of the economy and is not related to the level of labor costs. Little influence on costs per hour worked was exerted by company size, for example, in financial intermediation, where labor costs were 4.6% higher in large companies, or in the provision of other economic services, where they were 2.4% higher in companies with fewer than ten employees than in companies with 50 or more employees.
The differences in the tertiary sector were thus far more striking than in manufacturing. The average value in the service sector was 61.36 francs per hour.
In industry and commerce, on the other hand, the lowest labor costs were incurred in the construction sector, at 51.71 francs per hour. The highest hourly labor costs were incurred in the utilities sector at 72.36 Swiss francs. The mean value was 56.67 francs.
The FSO data according to the study, costs are lower in smaller companies. In companies with more than 50 employees, they were a good quarter higher in 2016 at 64.50 francs per hour than in companies with fewer than ten employees (50.35 francs).
Switzerland has its price
The reason for such cost developments is the almost 23 percent lower wages in smaller companies. However, this is not the case in all industries and sectors: In the banking and insurance industry and in the provision of other business services, labor costs were higher among small companies.
In the EU average, one hour cost 29.27 francs in 2016 according to the daily exchange rate (end of August 2018). The most expensive was Denmark with 49.42, the cheapest was Bulgaria with 5 francs. In Germany, the working hour cost 38 francs.
