Switzerland to raise wages next year

In a poll conducted on the topic of wages, the large Swiss bank UBS has asked 314 companies. They expect a slight salary increase in 2022. This means that wage hikes are likely to be slightly higher than this year. For the current year, companies assume there has been an average salary increase of 0.6 percent, reports the sf.ch.

In view of inflation, however, growth is not that high: UBS economists are predicting an inflation rate of 0.5 percent for the full year 2021, the albinfo.ch broadcasts. This means that wage levels should only increase by 0.1 percent in real conditions this year.

For 2022, economists expect an inflation rate of 0.4 percent and a real wage increase of 0.4 percent.

Meanwhile, UBS isn't worried about staying consumption. According to economists, consumers now even have higher purchasing powers. That's because people have saved up more during pandemic.

According to data from the Federal Bureau of Statistics, savings rates rose from almost 20 percent to over 30 percent.

Some of these savings are likely to turn to private consumption in the next quarter and support the economy”, it says.

This assumption of the large bank is also supported by a positive perspective shown by the surveyed companies, followed by albinfo.ch. According to the survey, almost 80 percent of companies expect the Swiss economy to continue to grow in the coming year.