The ratio of layoffs and layoffs is becoming more dynamic. People over 50 are more likely to be affected by this.
The figures from the State Secretariat for Economic Affairs (Seco) show: The unemployment rate of 2.5 percentage points is still low, but is increasing slightly compared to the previous year. The labor market is slowly recovering from the overall economic shortage of skilled workers and is returning to normal.
Legend: People over 50 can no longer benefit from the overall economic shortage of skilled workers. This is shown by a study by the recruiter von Rundstedt. Keystone / Gaetan Bally
A normalization because the ratio between layoffs and new hires is becoming more dynamic again. This shows one Study the recruiter from Rundstedt. This particularly affects people over 50, whose chances on the job market are reduced again.
Briefly explained: normalization of the labor market
Open box Close box
The normalization of the labor market is about ensuring that the dynamics of the labor market return to normal, i.e. that layoffs and new hires are in balance.
After the Corona crisis, this balance no longer existed in Switzerland because not all vacancies could be covered by the available staff. This led to an economic shortage of skilled workers. According to the von Rundstedt study, this is now over, but the structural shortage of skilled workers still remains.
Sabine Röhr knows what that feels like. The soon-to-be 60-year-old has been looking for a new job for more than a year. She is a consultant and project manager and became self-employed in 2018 after being laid off.
Too old, too overqualified
However, due to the Corona crisis, this business did not go as planned and orders came to a standstill. Now she longs to work in a team for a company again and thus use her potential.
I applied for a variety of positions, some with massive pay cuts, and was still rejected.
But no matter whether in consulting, as a driver, as a receptionist or in sales, her applications were rejected everywhere on the grounds that she was too old or too overqualified. “I applied for a variety of positions, some with massive wage losses, and I was still rejected,” she says.
According to the study, losing wages when starting a new job is not uncommon for people over 50. People over 50 earn an average of eight percent less for a new hire than people under 30, who receive an average wage of 13 percent higher. There are also strong differences in search duration:
At 6.6 months, people over 50 look for a new job for more than twice as long as people under 30. These are average values. As Sabine Röhr’s example shows, it can also take longer.
The labor market will continue to normalize
The study author and managing director Pascal Scheiwiller expects these developments to continue. This could lead to further polarization between young and old.
However, it is part of a healthy labor market that people are constantly being fired and hired. This is the only way a company can adapt to market developments.
There will be an increasing number of reduction projects, correction projects and restructuring, especially in the next six months.
The fact that there are currently so many mass layoffs is due to the fact that people want to reduce the excess capacity resulting from the Corona crisis. “There will be an increasing number of dismantling projects, correction projects and restructuring, especially in the next few months,” says Pascal Scheiwiller.
More appreciation for older workers
Sabine Röhr is aware of this, but doesn’t let it get her down. Giving up isn’t an option for her, but you can’t buy hope either, she says. It takes both sides to get a new job.
There needs to be more appreciation for the people who have brought the country into this state for over 30 or 40 years.
She is convinced that both young and older people are needed in a company so that both can learn from each other. “There needs to be more appreciation for the people who have brought the country into this state for over 30 or 40 years,” she says.
Our labor market is becoming more dynamic again. This means that there will be more layoffs, but at the same time it also means that new opportunities could arise for people like Sabine Röhr.