Immigration Policies and Unemployment in Switzerland

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Gabriel Rus – 000509216        Context and Regulatory Framework of Business

When the Export of Social Problems Is No Longer Possible: Immigration Policies and Unemployment in Switzerland

Throughout the twentieth century, Switzerland has been one of the European countries with the highest proportion of immigrants in its population and the lowest level of unemployment. The aim of the article is to show how institutional factors changed immigration and immigration-employment policies in the 1990s. Whereas unemployment had remained low in 1970s and 1980s, there was a significant increase in the 1990s. The central cause of this increase was considered the migration policies, because the great majority of immigrants settled down were low-skilled and over-represented among the unemployed. The reforms undertaken in these fields to respond to these new problems have been determined by institutional factors: direct democracy, a defensive migration regime, the development of immigration rights and the weak autonomy of the central state.

The end of the sustained economic growth determined an immigration political issue to many industrialized European countries in the early 1980s, such as mass unemployment, spatial segregation, urban violence and xenophobia. As a response to these issues, most countries tried to stop the flows of labour migration after the oil shock in 1973. Some of the countries took advantage of the growing fear linked to social and economic uncertainty among the public and used it to stop immigration. For instance, in France, extreme-right party “Front National” used equation such as “immigration = unemployment” (Bade 2002). In Switzerland, immigration issues were politicized in the early 1960s and this led to limit immigration through a system of quotas. Because of this the social and economic problems related to migration, such as high unemployment and social marginalization, didn’t affect Switzerland during the recession of the mid 1970s. They became more visible only at the beginning of the 19190s, much later than in other comparable countries.

Until the beginning of the 1990s, the Swiss economy had been able to cope successfully with all major economic downturns and was seen as a model of economic and political stability. During the recession of the 1970s and 1980s, unemployment remained at a very low level and comparing to other neighbour countries, Switzerland had a good economic performance and led many observers to consider it a Sonderfall, an exception (Armingeon 2004).

Indeed, over the last 50 years, Switzerland has been one of the countries with the highest levels of immigrants in Western Europe, with around 21% of the population and 25% of the work force (Egger 2003). When the economy was hit by the oil crisis of the mid 1970s, many foreigners lost their job and they had to leave the country, so that unemployment rate remained under 1% during the ’70s and ’80s. However, in the ’90s, Switzerland experienced a significant increase of employment levels, unseen since the ’30s. Even if the level of unemployment didn’t reach the same levels of other neighbour countries, Switzerland no longer seemed to be a Sonderfall (Bonoli and Mach 2000). The main cause of the end of Sonderfall was considered the immigration and immigration policies. As a majority of foreigners had access to more stable stay permits (owing to pressure from their countries of origin), was no longer possible to send them back to their home, as had been done in the past. In this new context, developments in the immigration and integration policy to respond to the socio-economic problems have been conditioned by specific institutional factors. Although some important adjustments have been made in admission policy (most important - the induction of free movement of persons within the EU in 2002). The major factors inhibiting the possibilities for change in immigration policy were four: the constraints of direct democracy, a defensive migration regime, state structures and their effects and the overall improvement of the legal status of immigrants mainly due to bilateral agreements with sending countries.

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Direct democracy is often presented as the major originality of the Swiss political system and certainly constitutes the decisive factor in the development of all policy domains. Every legal change proposed by the government has to be approved by all potential veto players who could launch a referendum, which makes the state only weakly autonomous with societal interest (Kriesi 1998). Virtually all federal laws and international treaties are subject to optional referendum. A popular ballot is held if 50,000 citizens request it by way of petition, therefore it makes legislators very careful to satisfy all veto players. If ballots reach ...

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