A Firm Level Analysis of Labor Productivity in Switzerland
Selected Issues Papers, October 6, 2025
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- A Firm Level Analysis of Labor Productivity in Switzerland
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Bibliographic details
- Authors: Tianxiao Zheng
- Published: October 6, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229028677.018
Summary
- Switzerland’s labor productivity is generally higher than that in other advanced economy peers, although with significant variation across sectors and firm sizes.
- Multinational enterprises drive average productivity upwards, while small firms and the services sector lag.
- Adapting to the evolving global structure and ensuring sustained labor productivity growth require policies to support firm scale-up, address labor shortages, and enhance competition.
Key findings
- Cross-country and cross-firm heterogeneity:
- Switzerland’s labor productivity is generally higher than that in other advanced economy peers.
- Significant variation exists across sectors and firm sizes.
- Drivers of productivity:
- Multinational enterprises drive average productivity upwards.
- Small firms and the services sector underperform relative to larger firms and manufacturing.
- Structural challenges:
- Evolving global structure requires policy responses to maintain productivity growth.
Policy recommendations
- Support firm scale-up to enable more firms to move into higher-productivity brackets.
- Address labor shortages to prevent constraints on potential productivity gains.
- Enhance competition, particularly in sectors where small firms and services lag, to spur efficiency and innovation.
Content in this bundle
- Real GDP per Person Employed of Switzerland vs. U.S. and Europe