The head of the giant Adecco warns: Limiting Switzerland’s population to 10 million could hit the economy

1741 readings

The executive director of Adecco Group, Denis Machuel, warns that the proposal to limit Switzerland’s population to 10 million inhabitants could seriously affect the country’s economy and companies’ access to specialized labor.

The statements come less than a month before a referendum on the initiative, which has gained significant support in polls in recent months.

In an interview with Bloomberg, Denis Machuel said that Switzerland already faces an aging population, a talent shortage and a lack of skills in several key areas.

“If you limit Swiss companies’ access to skilled foreign workers, this can become a limit to Switzerland’s economic and even social success,” he said.

According to the Federal Statistical Office, Switzerland’s population grew by an average of about 0.8% per year, a rate higher than that of many other European states. But population growth has fueled discontent over immigration, high housing prices and rising rents.

Machuel acknowledges that a rapid population growth generates pressure and requires effective control policies, but believes that a strategy based on “smart migration”, integration and education is a better solution than severe restrictions.

Excessively strict measures could reduce the ability of companies to recruit staff

According to him, excessively strict measures could reduce the ability of companies to recruit staff and would cause some firms to move their investments to other countries.

“Global companies are constantly deciding where they can grow best and where they allocate their resources,” explained the Adecco boss.

He warns that the effects would not be limited to the high-tech or life sciences sectors, but would also affect essential trades such as plumbers, carpenters, electricians or medical personnel — fields where the shortage of employees is already acute.

Adecco points out that many of these jobs will not be replaced by artificial intelligence anytime soon.

But the company also faces its own AI development challenges. Investors fear that new technologies could allow companies to manage their recruitment processes in-house, reducing the role of specialist agencies.

Adecco’s first-quarter financial results fell short of expectations and the group’s shares fell to their lowest level since 1993 after reporting disappointing margins.

But Denis Machuel rejects the idea that artificial intelligence will eliminate the role of intermediaries in recruitment.

“The narrative that AI is going to destroy the brokerage that Adecco does is fundamentally wrong,” he says.

The company’s director believes that companies will increasingly need the retraining and improvement of employees, and here the Swiss group could benefit from technological transformations.

In a recent study by Adecco, only 31% of leaders surveyed said their organizations have sufficient skills to fully understand the opportunities offered by artificial intelligence.