Have Unskilled Youths Become More Vulnerable to Unemployment in Switzerland?

We investigate the specific situation of youth with regard to unemployment. Even though Switzerland is known to suffer from low unemployment in international comparison, young and unskilled workers are the most vulnerable and therefore deserve attention. Using data from the Swiss Labour Force Survey over the period from 1991 to 2008, we conduct several statistical analyses to investigate the labour market situation of unskilled youths and its evolution. The results show that the situation of unskilled young workers has significantly worsened over the last two decades. Transition analysis and logistic regressions indicate more resilient unemployment for unskilled youths. The business cycle, bilateral agreements with the EU
granting free movement of labour and technological changes are all potential explanations of this phenomenon.