After the end of the coronavirus pandemic, Switzerland is witnessing a troubling rise in payment arrears among its residents. New data released by the Federal Statistical Office (FSO) highlights that 6.3% of the population lived in households with at least two types of payment arrears in 2023. This figure marks a significant increase from the pandemic year of 2022, which saw only 4.8% of households struggling with similar financial difficulties.
The FSO's report, published on March 31, 2025, indicates that the current percentage of those in arrears is nearly on par with pre-pandemic levels, where the figure stood at 7% in 2019. The increase in arrears reflects the changing financial landscape as many Swiss citizens, who had curtailed spending during the pandemic, are now facing the reality of resumed consumption.
According to the FSO, the rise in payment arrears correlates with an uptick in overall consumer spending as households attempt to return to their pre-pandemic lifestyles. "During the pandemic, Swiss people were able to spend less money while their wages remained the same, and consumption then picked up again," the FSO noted. This shift in spending habits has put pressure on household budgets, leading to the observed increase in arrears.
Furthermore, the report highlights a concerning stability in the poverty rate across the country. In 2023, approximately 8.1% of the population, equivalent to around 708,000 individuals, were categorized as income poor. This rate is only slightly down from 8.2% in 2022, indicating that economic recovery has not yet translated into improved financial conditions for many.
Poverty remains a pressing issue, particularly for vulnerable groups, including individuals living alone, single-parent families with young children, and those with lower educational qualifications. The FSO's statistics reveal that the poverty rate among the employed population rose to 4.4% in 2023, up from 3.8% in 2022. This increase further emphasizes the challenges faced by those trying to make ends meet in a recovering economy.
The poverty threshold, as defined by the Swiss Conference of Social Welfare Institutions (CSIAS), was set at CHF 2,315 per month for a single person and CHF 4,051 for two adults living with two children in 2023. These figures provide a benchmark against which many households are struggling, as evidenced by the 5.5% of the population who reported having to forego essential goods, services, and social activities due to financial constraints.
Despite these challenges, there is a glimmer of hope in Switzerland's overall economic landscape. Recent reports indicate that the per-capita purchasing power of Swiss residents is significantly higher than that of their neighbors in Germany and Austria. According to the Purchasing Power 2025 survey conducted by GfK, the average purchasing power in Switzerland is CHF 49,724 (approximately EUR 53,011), far surpassing Austria's CHF 28,000 (EUR 29,852) and Germany's CHF 27,732 (EUR 29,566).
This disparity in purchasing power is noteworthy, especially as Switzerland recorded the strongest growth in this area compared to the previous year, with a projected increase of 2.3% in net disposable income for 2025. In contrast, Austria and Germany are expected to see a more modest growth of 2%.
In a bid to address labor shortages, the Swiss government has announced initiatives to help refugees gain access to higher education. The Federal Council revealed plans to facilitate educational opportunities for qualified refugees over the next four years, with a budget of CHF 1.5 million allocated for this purpose. This initiative aims not only to support refugees but also to bolster the domestic workforce, addressing the skills gap in the Swiss labor market.
Additionally, the Swiss Federal Railways (SBB) is undergoing a significant reorganization of its transport network. The aim is to enhance train speed and improve the flow of rail traffic, particularly by prioritizing major lines. Monika Ribar, chairperson of the SBB Board of Directors, explained that the current network has reached its limits, stating, "The slowest train determines the speed of the entire system." This strategy may involve reducing service to smaller stations while still providing alternatives for local transport.
As Switzerland navigates the post-pandemic landscape, the interplay between rising payment arrears, stable poverty rates, and economic growth presents a complex picture. While many households are struggling with financial pressures, the country’s higher purchasing power and initiatives aimed at integrating refugees into the workforce may offer pathways to a more resilient economic future.
