New data from the Federal Statistical Office (FSO) has revealed that the rate of people receiving social security benefits in Switzerland has fallen to a record low. 18 Swiss cantons have seen rates of social assistance drop, though non-Swiss residents remain the most likely to claim some form of welfare.

Social benefit rates in Switzerland fall to an all-time low

According to the data, 249.700 people living in Switzerland received financial social assistance at least once in 2023, amounting to 2,8 percent of the population. With rates having fallen by 0,1 percentage points or 7.100 people compared to 2022, rates of social assistance are now at their lowest since data started to be recorded in 2005. Despite record population growth, the absolute number of people receiving support is now at its lowest level since 2011.

The percentage of people receiving assistance dropped in 18 Swiss cantons, with Neuchâtel reporting the strongest decline (0,4 percentage points) compared to 2022. Five cantons saw no visible change, while Vaud, Geneva and Nidwalden saw rates increase by 0,1 percentage points. 

With the increase, Geneva has overtaken Neuchâtel as the canton with the highest rate of social assistance in Switzerland, with over 6 percent of the population receiving some form of benefit in 2023. Neuchâtel and Basel-Stadt rounded out the top three, while Appenzell Innerrhoden, Obwalden and Thurgau sported the lowest rates.

Swiss worker shortage and strong economy lead to lower welfare rates

For the FSO, the record low rate of benefit claimants can be attributed to the state of the Swiss economy. “Both the unemployment rate, the number of registered unemployed and the number of long-term unemployed were on average below the level of the previous year and also lower than in 2019 before the Covid-19 pandemic,” the FSO noted.

The government added that the ongoing shortage of workers in Switzerland has allowed those on assistance to secure jobs with higher salaries. The FSO found that a significantly higher number of unemployment and welfare cases were concluded because the claimant had found employment with higher pay.

Non-Swiss nationals claim social assistance at high rates

Nevertheless, the FSO data also exposed ongoing inequality between Swiss citizens and residence permit holders when it comes to social benefits. In 2023, 5,7 percent of foreign citizens claimed some form of financial assistance, more than double the national average. Children (4,6 percent), those who are divorced (4,3 percent) and residents of Swiss cities (4 to 4,8 percent+ on average) were also at a higher risk.

However, the FSO noted that these “risk groups” saw the best improvements in 2023. Rates of social assistance among foreign nationals, divorcees and young people dropped by 0,2 percentage points compared to 2022, double the national average. 

For more information about the study, check out the FSO website.

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