[Switzerland] Minimum wage hurting job prospects for young people in Jura

The Swiss canton of Jura introduced a minimum wage of CHF 20 an hour (US$ 21.65) around three years ago. Now, according to RTS, there is political pressure to reexamine the move, Le News reports.

In response to growing pressure from young people, a group of cantonal parliamentarians from the PDC (Christian Democratic Party) is pushing for a review of the minimum wage situation.

The group says that the CHF 20 hourly wage minimum is having a negative effect on the employment prospects of some job seekers - particularly young people in education - and it is demanding that changes be made.

Currently, companies offering internships and traineeships must pay a minimum of CHF 20 an hour (with a few exceptions). This is a level of remuneration that some employers cannot support, Magali Voillat - a member of Jura’s parliament and the PDC - told RTS.

In her RTS interview, Ms Voillat gave the example of students training to work in childcare. Work experience is required to gain entry onto certain courses, however, some students are finding it difficult to find the necessary work experience. When the minimum wage rate is high it is more economical for employers to take on qualified people with experience rather than those without.

In addition, some students are finding it difficult to find part-time work to help support themselves while they study.

The impact of minimum wages can prove controversial. According to the International Labour Organisation (ILO), a comprehensive review of about 70 studies in high-income countries demonstrated estimates ranging from high negative employment effects to small positive effects. And many studies have reportedly shown the effects to be minimal in either direction.

Yet there is likely to be a tipping point. At a certain minimum wage point, businesses will be unable to absorb or pass along the extra cost to customers and could potentially seek ways to automate jobs away. A process some Swiss supermarkets have begun with the introduction of self-checkout. 

In other cases, the supply of products or services may be diminished. In time, if fewer trainee childcare staff are taken on, there may be fewer nursery places available.

The Swiss canton of Jura introduced a minimum wage of CHF 20 an hour (US$ 21.65) around three years ago. Now, according to RTS, there is political pressure to reexamine the move, Le News reports.

In response to growing pressure from young people, a group of cantonal parliamentarians from the PDC (Christian Democratic Party) is pushing for a review of the minimum wage situation.

The group says that the CHF 20 hourly wage minimum is having a negative effect on the employment prospects of some job seekers - particularly young people in education - and it is demanding that changes be made.

Currently, companies offering internships and traineeships must pay a minimum of CHF 20 an hour (with a few exceptions). This is a level of remuneration that some employers cannot support, Magali Voillat - a member of Jura’s parliament and the PDC - told RTS.

In her RTS interview, Ms Voillat gave the example of students training to work in childcare. Work experience is required to gain entry onto certain courses, however, some students are finding it difficult to find the necessary work experience. When the minimum wage rate is high it is more economical for employers to take on qualified people with experience rather than those without.

In addition, some students are finding it difficult to find part-time work to help support themselves while they study.

The impact of minimum wages can prove controversial. According to the International Labour Organisation (ILO), a comprehensive review of about 70 studies in high-income countries demonstrated estimates ranging from high negative employment effects to small positive effects. And many studies have reportedly shown the effects to be minimal in either direction.

Yet there is likely to be a tipping point. At a certain minimum wage point, businesses will be unable to absorb or pass along the extra cost to customers and could potentially seek ways to automate jobs away. A process some Swiss supermarkets have begun with the introduction of self-checkout. 

In other cases, the supply of products or services may be diminished. In time, if fewer trainee childcare staff are taken on, there may be fewer nursery places available.