Why is unemployment rate so low in the Alpes

[Swedish Rainbow Capitalist Cheese]

While doing some research on unemployment I came across this map with Eurostat's unemployment rates from different regions in Europe.



An intresting map, but most of it I already knew. But I didn't know the Alpes stuck out so much when it comes to low unemployment. I find it facinating. Can anyone explain why to me? Is this a historic trend or a recent development?

 

[Antonio the Sixth]

Alpes ? The dark green spot covering Switzerland/Austria/Bavaria/BaWü is not exactly Alpes.

[Tender Branson]

Alpes ? The dark green spot covering Switzerland/Austria/Bavaria/BaWü is not exactly Alpes.

What else is it then ?



As for the question: I don't know if there's a special reason, but summer and winter tourism might have a lot to do with it. It's a job magnet. Switzerland of course can be explained partly because of the historic Protestant hard-work ethic.

[minionofmidas]

Alpes ? The dark green spot covering Switzerland/Austria/Bavaria/BaWü is not exactly Alpes.

What else is it then ?

The Upper Danube Valley, plus the northern half of the Alps?

[Antonio the Sixth]

Alpes ? The dark green spot covering Switzerland/Austria/Bavaria/BaWü is not exactly Alpes.

What else is it then ?

It's got southern Germany and the bulk of non-Alpine Switzerland and Austria. On the other hand, it lacks Rhône-Alpes, PACA, Piemonte, Lombardia, Veneto, FVG and Slovenia. And, oh irony, the only swiss cantons not comprised in it are the most alpine ones. This region definitely cannot legitimately be called "alps" under any meaningful definition.

[Swedish Rainbow Capitalist Cheese]

It's got southern Germany and the bulk of non-Alpine Switzerland and Austria. On the other hand, it lacks Rhône-Alpes, PACA, Piemonte, Lombardia, Veneto, FVG and Slovenia. And, oh irony, the only swiss cantons not comprised in it are the most alpine ones. This region definitely cannot legitimately be called "alps" under any meaningful definition.

Fine, fine. Nit picking, nit picking. What do you suppouse I call an area consisting of Austria + Switzerland + Southern Baveria + Southern Baden-Würtenberg + South Tyrol and some other very northern parts of Italy + Lichtenstein. Auswisobasobawürsotyrstein?

As for the question: I don't know if there's a special reason, but summer and winter tourism might have a lot to do with it. It's a job magnet. Switzerland of course can be explained partly because of the historic Protestant hard-work ethic.

I considered that, but other tourist regions are no different than Europe at large. Looking at Andalucia and the French Riviera, quite the difference. As for Protestant hard work ethic shouldn't that then also apply to Scandinavia. (I mean obviously Norway... but the rest of us?)

[minionofmidas]

"where fat affluent Catholics go to retire and die"? Not at all fair, of course, but certainly a better fit than "Alps" or "Protestant work ethic"...

[Tender Branson]

Another factor could be the demographic change. In many sectors, the old generation which is now 65 is now retiring and this generation was very numerous, birth-statistics-wise. About 65 years ago, birth rates were about 2%, whereas now the birth rate in the "Alpine" region is about 0.9% annually. This means that a gap is opening in a lot of sectors because many olds are retiring and the less numerous young ones can't fill everything (but still a good amount, which is why youth unemployment in the Alpine region is so low). And that's also why German/Austrian/Swiss companies are now already hiring tons of skilled people from Spain/Portugal/Greece etc. because not enough young skilled workers can be found at home anymore. There have been job fairs in Madrid in which about 500 people applied for 1 job. But there are not many Spanish etc. who actually go to Germany/Austria because of the language barriers and because it's hard to leave the family and friends behind. But the situation here for example is like this: 40.000 high-skilled jobs could/need to be filled right now here, even with an unemployment rate of 4%. So my Southern friends, if you want a good job, want to learn German and live here, come here. There are plenty jobs available here in the next years ...

[Gustaf]

In Switzerland it seems to be mostly the German-speaking parts, since it excludes Geneva and Ticino from what I can see on the map.

[minionofmidas]

Not sure about Austria, but of course the reason Germany doesn't attract high-skilled migrants is because it refuses to treat such immigration as desirable. No way you could get a lifetime residency permit right away, for instance.

[Swedish Rainbow Capitalist Cheese]

"where fat affluent Catholics go to retire and die"? Not at all fair, of course, but certainly a better fit than "Alps" or "Protestant work ethic"...

Touché. Although I was going to write that Protestant-work ethic was not it because out-side of Switzerland that's the strongest catholic part of German-speaking Europe.

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But that is also true for a lot of (most of) places in Europe. Sweden also had a byby boom post WWII, and so did most European countries, and 65 is the retirment age in almost all of Europe.  

[Tender Branson]

The next thing might sound a bit crude, but think about it:

My company of 40 people employs about 10 young apprentices. Why ? Because they are cheap and because the boss wants to give them a chance. Most of them work as hard as a regular worker and almost everyone will pass the apprenticeship-test after 3 years. Many of them are also getting their university access diplomas by taking courses AFTER work. Some of them will study, most of them will be kept within the company in case the olds retire. They have a perspective.

Now we jump to Spain, Greece etc. where some 25-year old university student takes a class about a useless subject he/she won't need in the next 40 years. Because there are no jobs after studying, Spanish/Greek guy moves in with parents and writes job applications. Not a lot happens because in real life you don't need a degree in philosophy.

Who do you think an employer will hire earlier ? An apprentice from let's say sales/management with a 3-year experience in real-life work and customer contact, or some student with a philosophy degree that didn't work a lot in the last 6 or so years ? So, the main difference between here and other parts of Europe could also be a lack of employers' trust in young people.

The side effect though is that the young working Austrian apprentice then says: Oh look at all these foreigners, they taaaakkkee uuuurr jobsss ! while the Spanish student says: Things suck, where is the next strike to participate in ? Meh, let's vote Socialist.

[minionofmidas]

Basically, unemployment figures are not comparable between countries anyways. The definitions and the factors driving them can vary too much. The same is true of unemployment figures in Germany vs some years ago, actually - way too many de-facto-unemployed people tricked off the books right now.
The comparison of South Germany vs North Germany, or of southern Spain vs northern Spain etc, remains quite valid, of course.

[Gustaf]

It's generally better to use employment figures, since they can't be manipulated to the same extent. It has other problems though, of course.

[minionofmidas]

It's generally better to use employment figures, since they can't be manipulated to the same extent. It has other problems though, of course.

Wouldn't help in a Germany comparison over time unless you're using some reasonable minimum hours and primary wage threshold.

[ZuWo]

I admit that my knowledge of economics is limited, so I am ready to be corrected by some of the economic experts here on the board.
I think some of the factors that are helpful for a country to achieve a low unemployment rate are a flexible job market, positive conditions for smaller and bigger businesses, which gives them an incentive to invest (e.g. acceptable tax rates, not too much regulation, a sufficient number of available skilled employees) and a diversified economy. These factors certainly play a role in Switzerland's economic success, which is reflected by the relatively low unemployment figures.

[Gustaf]

Switzerland uses migrants to absorb shocks, basically.

Lewis, I'm not sure what you mean exactly. Of course, all employment rates should be re-calculated to full-time equivalents. I guess average hours worked would be even better.

[minionofmidas]

Switzerland uses migrants to absorb shocks, basically.

Lewis, I'm not sure what you mean exactly. Of course, all employment rates should be re-calculated to full-time equivalents. I guess average hours worked would be even better.

Yah, what I meant is: the trick behind Germany's massive reductions in unemployment rates is forcing unemployed people (that don't seem likely to find a real job without government help that isn't given) into miserly paid silly activities for a few hours, supplementing their income with welfare o/c.
Rather than the time-honored trick of just considering the unemployable as not looking for work at all, and therefore not unemployed. So you'd see a corresponding rise in numbers employed, if you define employed as doing any kind of paid work at all.
If you recalculate to average hours, much of the change disappears.