Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Switzerland 2017 OECD Economic Survey boosting productivity and meeting skills needs

7,145 views

Published on

Switzerland 2017 OECD Economic Survey boosting productivity and meeting skills needs

Published in: Economy & Finance
  • Be the first to comment

  • Be the first to like this

Switzerland 2017 OECD Economic Survey boosting productivity and meeting skills needs

  1. 1. http://www.oecd.org/eco/surveys/economic-survey-switzerland.htm 2017 OECD ECONOMIC SURVEY OF SWITZERLAND Boosting productivity and meeting skills needs Bern, 14 November 2017 @OECD @OECDeconomy
  2. 2. 2 Living standards are high OECD Better Life Index, 2017 Index scale, 0 (lowest) to 10 (best) Note: For each dimension indicators are normalised and averaged. Source: OECD, Better Life Index. 0 2 4 6 8 10 Income and wealth Jobs and earnings Housing Work and life balance Health status Education and skills Social connections Environmental quality Personal security Subjective well-being Switzerland OECD
  3. 3. 3 The economy is growing but only slowly GDP growth Source: SECO. -4 -2 0 2 4 6 2006 2008 2010 2012 2014 2016 % y-o-y
  4. 4. 4 Employment is high Source: OECD, Labour Force Statistics database. Employment-to-population ratio 50 55 60 65 70 75 80 85 2010 2011 2012 2013 2014 2015 2016 2017 Switzerland OECD%
  5. 5. 5 Productivity has stalled Source: OECD, OECD Economic Outlook 102 database, preliminary version. Trend labour productivity growth 2000 2002 2004 2006 2008 2010 2012 2014 2016 0.0 0.5 1.0 1.5 2.0 Switzerland OECD %
  6. 6. -30 -20 -10 0 10 20 30 40 50 GRC FIN SVK NLD LVA CZE DNK HUN ITA EST ESP BEL DEU EU15 SVN IRL POL PRT AUT GBR FRA NOR CHE SWE ISL LUX High skill Middle skill Low skill % pts 6 The demand for skilled workers has been strong Contributions to changes in total employment growth over 2000-16 Note: Countries are ordered by the contribution of high-skill employment Source: Eurostat.
  7. 7. Entrenching the expansion 7
  8. 8. 8 Fiscal policy is sound and public debt low Gross general government debt, % of GDP Note: The shaded area denotes the 25th to 75th percentile range for OECD countries. OECD is an unweighted average of data for available countries. Source: OECD, OECD Economic Outlook 102 database, preliminary version. 0 20 40 60 80 100 120 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 Switzerland OECD
  9. 9. 9 Unconventional monetary policy has supported growth Source: Swiss National Bank; Thomson Reuters Datastream; OECD, OECD Economic Outlook 102 database, preliminary version. Interest rates SNB’s foreign exchange reserves 0 25 50 75 100 125 150 175 200 225 2006 2008 2010 2012 2014 2016 % of imports CHF/EUR ceiling -2 -1 0 1 2 3 4 2006 2008 2010 2012 2014 2016 SNB target range 3-month, CHF LIBOR %
  10. 10. 10 Low interest rates increase risks Source: OECD, House Price database. House prices, 2010 = 100 80 90 100 110 120 130 2006 2008 2010 2012 2014 2016 Ratio to consumer prices Ratio to average household income
  11. 11. 11 Household credit is high Source: OECD, Vulnerability Indicators database. Household credit, % of GDP, 2017 Q1 0 20 40 60 80 100 120 140 MEX TUR HUN CZE POL ISR ITA CHL IRL AUT DEU JPN FRA BEL LUX GRC ESP FIN PRT USA SWE GBR KOR NZL CAN NOR NLD DNK AUS CHE
  12. 12. 12 Age-related public spending will become a fiscal burden Long-term projections for age-related spending, % of GDP Source: Federal Department of Finance (2016), Report on the Long-term Sustainability of Public Finances in Switzerland. 9 10 11 12 13 14 15 0 5 10 15 20 25 2013 2030 2045 By type of spending Long-term care Health care Pensions (AHV/IV) Education 0 5 10 15 20 25 2013 2030 2045 By level of government Communes Cantons Social security Confederation
  13. 13. 13 The current account surplus is large Current account balance in OECD countries with a surplus, 2016 Source: OECD, OECD Economic Outlook 102 database, preliminary version. 0 1 2 3 4 5 6 7 8 9 10 PRT CZE LVA AUT EST ESP ITA IRL ISR JPN SWE LUX NOR SVN HUN KOR ISL DNK DEU NLD CHE % of GDP
  14. 14. 14 High household saving is contributing to the large current account surplus Net saving and investment balances in selected countries with a current account surplus % of GDP Source: OECD, Annual National Accounts database; Federal Statistical Office; OECD calculations. -2 0 2 4 6 8 10 12 14 16 Netsaving Netinvestment Netsaving Netinvestment Netsaving Netinvestment Netsaving Netinvestment Netsaving Netinvestment DNK DEU NLD SWE CHE Households General government Corporations
  15. 15.  To support growth: Avoid persistent budget underspending through better co-ordinating procedures at federal and sub-national levels. Reduce agricultural subsidies and pursue efficiency gains in public spending to free up funds for measures that enhance growth and inclusiveness.  To reduce risks: Eliminate remaining explicit cantonal government guarantees to their public banks. Establish a formal framework for setting mortgage lending limits that takes affordability into account and is enforced on a comply-or-explain basis. 15 Key fiscal and financial recommendations
  16. 16.  To address ageing-related challenges: Fix the retirement age at 65 for both sexes, and thereafter link it to life expectancy. Increase financial incentives to work longer before retirement. Promote programmes to lengthen healthy working lives, including preventative health programmes. Promote lifelong training, career planning and tailored job-search assistance to enhance workers’ resilience to change. 16 Key fiscal and financial recommendations (cont.)
  17. 17. Boosting productivity for long-term growth 17
  18. 18. 3 4 5 6 7 8 9 10 11 12 13 14 15 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 GRC ITA LUX FIN AUT CHE MEX DEU GBR JPN BEL NLD NZL DNK FRA ESP CAN ISR PRT ISL NOR SWE HUN AUS USA SVN CZE EST IRL KOR SVK TUR POL CHL % 18 Productivity is high, but sluggish Average annual rate of trend labour productivity growth over 2006-16 Source: OECD, OECD Economic Outlook 102 database, preliminary version.
  19. 19. 19 Switzerland is a leader in R&D and innovation Innovation performance indicator EU average level in 2010 = 100 Source: European Commission (2017), European Innovation Scoreboard 2017. 0 20 40 60 80 100 120 140 160 180 POL LVA TUR HUN GRC SVK ITA ESP EST PRT CZE SVN EU28 FRA ISR IRL NOR BEL LUX AUT ISL DEU GBR NLD FIN DNK SWE CHE Moderate innovators Strong innovators Innovation leaders
  20. 20. 20 The productivity of frontier firms has diverged from the rest Labour productivity, 2002 = 100 Note: Markers denote survey years. Labour productivity is calculated as value added per employee. Source: OECD calculations based on KOF, Swiss Innovation Survey. 0 50 100 150 200 250 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Most productive 1% of firms Other firms
  21. 21. 21 The administrative burden is heavy Share of firms that discontinued their business citing bureaucracy as the main cause, % Source: Global Entrepreneurship Monitor 2015/2016, Report on Switzerland. 0 10 20 30 40 50 60 KOR NLD AUS NOR DEU PRT ESP GBR ISR BEL FIN USA CAN SWE ITA CHE
  22. 22. 22 Regulatory barriers to competition are high Product market regulation indicator Restrictiveness 1. ”Least restrictive countries” is the average of the three countries with the lowest score in each sector. Scores range from 0 to 6 and increase with restrictiveness. 2. Network sectors overall is the unweighted average of transport, communication and energy. Source: OECD, Product Market Regulation database. 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Professional services Retail distribution Transport Network sectors overall² Communication Energy Least restrictive countries¹ Euro area Switzerland
  23. 23. 23 Barriers to trade inhibit competition and productivity Services Trade Restrictiveness Index, for sectors with largest gaps Restrictiveness Source: OECD, Services Trade Restrictiveness Index database. 0.00 0.10 0.20 0.30 0.40 0.50 Logisticsstorageand warehouse Soundrecording Logisticsfreight forwarding Engineering Motionpictures Commercialbanking Construction Computer Broadcasting Courier Switzerland OECD
  24. 24. 24 Most women work part-time Part-time employment as a share of total Source: OECD, Labour Force Statistics database. 0 10 20 30 40 50 60 70 80 HUN SVK CZE POL LVA GRC PRT SVN EST TUR FIN ESP USA CAN CHL FRA SWE ISR ITA MEX ISL NZL IRL LUX DNK JPN NOR BEL GBR AUS DEU AUT CHE NLD Men Women %
  25. 25.  To improve framework conditions: Increase private ownership and remove barriers to entry in energy, telecommunications and transport. Remove representatives of economic associations from the competition authority’s board. Lower restrictions on trade in both goods and services, notably in agricultural products. Complete the negotiations for free-trade agreements that are underway. Finalise the virtual one-stop shop for administrative matters. Establish cantonal physical contact points to improve delivery of advisory services and public financing programmes. 25 Key recommendations to boost productivity
  26. 26.  To better use skills of women and immigrants: Increase childcare affordability. Shift income taxation to individual rather than household incomes, or implement equivalent measures. Facilitate high-skilled immigration from non-EU countries to meet labour market needs. 26 Key recommendations to boost productivity (cont.)
  27. 27. Ensuring a dynamic skills training and life-long learning system 27
  28. 28. 28 The education and training system is successful Youth not in employment, education or training % of 18-24 year-olds Source: OECD (2017), Education at a Glance 2017. 0 5 10 15 20 25 30 35 ISL NLD DNK LUX CHE NOR DEU SWE SVN AUS EST AUT LTU BEL NZL CAN GBR USA SVK OECD HUN LVA FIN ISR POL PRT IRL FRA CHL MEX ESP GRC ITA TUR
  29. 29. 29 Immigration has helped to meet the rising demand for skilled workers Contribution to working-age population growth by education and nationality, % points Source: Federal Statistical Office. -4 -2 0 2 4 6 8 10 12 Lower secondary Upper secondary Tertiary Lower secondary Upper secondary Tertiary 1997-2007 2007-2017 Swiss citizens Other nationalities
  30. 30. 30 High-skill vacancy rates are rising Sectors with above-average vacancy rates, % 1. IT and Other Information Services is a subsector of IT and Communications. Source: Federal Statistical Office. 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Totaleconomy Accommodation&food services Manufactureofmetal products Tradeandrepairof motorvehicles Realestate&scientific services Manufacturingof computers&watches Manufactureofother specialisedmachinery Finance&insurance IT&communications IT&otherinformation services¹ Average since 2009 Year to 2017Q2
  31. 31. 31 Tertiary education should further expand Entry rates for bachelor’s degree or equivalent¹ 1. First-time entry rates, excluding international students. First-time entry rates indicate the share of young adults expected to enter that type of tertiary education programme during their lifetime. Source: OECD (2017), Education at a Glance 2017. 0 10 20 30 40 50 60 70 80 LUX HUN AUT MEX ITA SWE PRT ESP DEU ISR FIN SVK CZE GBR TUR CHE NLD NZL EST CHL ISL NOR BEL DNK SVN IRL AUS %
  32. 32. 32 Participation in life-long learning is high 25-64 year-olds participating in education and training in the preceding four weeks, 2016 Source: Eurostat, Labour Force Survey 2016. 0 5 10 15 20 25 30 35 SVK POL GRC TUR HUN IRL LVA BEL ITA DEU CZE ESP PRT EU28 EA SVN GBR EST AUT LUX NLD FRA NOR ISL FIN DNK SWE CHE %
  33. 33. 33 Participation in life-long learning is not broad-based Difference in participation rates of those with high and low levels of education, 20161 1. 25-64 year-olds participating in education and training in the preceding four weeks. Difference in participation rate of those with tertiary education and less than upper secondary school. Source: Eurostat, Labour Force Survey 2016. 0 5 10 15 20 25 30 35 GRC IRL POL BEL HUN LVA DEU TUR NOR ESP CZE EU28 GBR EA DNK PRT ITA NLD EST LUX SVN ISL SWE FIN AUT FRA CHE % pts
  34. 34.  Collect more detailed data on skills to facilitate adjustments to education in response to changing labour market needs.  Enhance the effectiveness of pathways between vocational and general streams by increasing the academic component of the vocational curriculum and vice-versa.  Encourage small firms to participate more in apprenticeships by promoting sharing of apprenticeship places between firms and training centres that undertake part of the training.  Strengthen linkages between the vocational education and training system and employer associations in school-based vocational training.  Use subsidies to encourage participation in continuing education and training for groups with low participation rates. 34 Key recommendations for a dynamic skills training and life-long learning system
  35. 35. For more information Disclaimers: The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 35 http://www.oecd.org/eco/surveys/economic-survey-switzerland.htm @OECDeconomy @OECD

×