Ranked the most competitive economy in the World for six years in a row according to the World competitiveness index. Switzerland has the happiest people in the World. Also, the World Economic Forum considered Switzerland’s environment as the most solid around the world. Switzerland’s economy supersedes over its European neighbours; its GDP growth is of 2%, against 1.3% in the European Union. Unemployment remains a mere 3.2%, against 9.6% in Europe. Moreover, its 2014 budget has closed with only a 34% debt to GDP ratio. So how does Switzerland stay stable regardless of the Unstable economical environment surrounding it?
Value given to youth
On the contrary of the rest of Europe, that has an average of youth unemployment rate of 20.6%, Switzerland knows that youth is the future of the country, both its future entrepreneurs and consumers. According to tradingeconomics.com, its youth unemployment rate is 3.1%, which is 7 times less than the rest of Europe. The main reason for a low youth unemployment rate is education. First, having a diploma is not what matters to Switzerland the most; it is mostly about the number of people who can practice a job later on. Also, from the age of 15, the student is no longer obliged to go to school everyday, and can spend two days at school and three in a company, which can make him/ her more ready to face the challenges of a working environment. Moreover, these internships are paid. Thus, their integration in the job market is done smoothly. 95% of the students who chose to have a school and work alternating are hired in the next three months after earning their certificate.
“80% of people aged 15 to 64 in Switzerland have a paid job, above the OECD employment average of 65%, and one of the highest rates in the OECD.”
Switzerland invests 3% of its GDP in innovation. It is a country with one with the highest spending on research and development in the World. Furthermore, Switzerland is ranked one of the countries with most academic publications and patents. According to the Innovation Union Scoreboard of 2015,
“Switzerland is performing well above the EU average for all dimensions and for most indicators, in particular in 3 indicators: International scientific co-publications, Public-private co-publications and License and patent revenues from abroad”
One may not notice the relationship between foreign presence and innovation. Big Swiss companies like Nestlé, Rolex, or Nescafé help in the innovation of the country. Also, more than 30 international companies chose Switzerland as the location of their headquarters due to the country’s stability. The country, most known for its watches, doesn’t stop attracting many foreign entrepreneurs that contribute in the diversity and in the innovation of the country by bringing news ideas and ways of thinking.
To conclude, Switzerland is not affected by the Eurozone crisis and has two factors that play a main role in its stability. Thanks to its stability, it attracts many migrants and has its citizens satisfied with heir lives.
“In general, people in Switzerland are more satisfied with their lives than the OECD average. When asked to rate their general satisfaction with life on a scale from 0 to 10, Swiss people gave it a 7.5 grade, one of the highest scores in the OECD, where average life satisfaction is 6.6.”
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