State employs more people than reported, according to study
Published: Tuesday, Aug 27th 2024, 10:30
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According to a new study by the Institute for Swiss Economic Policy (IWP) at the University of Lucerne, over 17% of all employees will be working in the public sector in 2022. That is more people than officially reported.
Official statistics show a share of 10 percent, as the IWP reported on Tuesday. The difference lies in the fact that official statistics do not include state and state-related companies such as Swiss Post and Swisscom.
However, as the state is increasingly outsourcing its tasks to such state-related companies, it is important to take them into account in order to gain an insight into developments in administrative expenditure and employment structures.
If these companies are taken into account, administration is becoming increasingly expensive, according to the IWP. Since the mid-1990s, per capita expenditure on public administration has risen by 28% after adjusting for inflation. Compared to neighboring countries, Switzerland is in the middle of the pack with administrative costs of around CHF 6,500 per capita adjusted for purchasing power, the IWP continued. Although ahead of Austria, it is behind Germany.
The number of people employed by the state, including state-related companies, has also increased more than in the private sector.
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