Switzerland’s leading business organisations have thrown their weight behind a proposed cap on the growth of federal government staffing costs, arguing that an expanding
public sector is putting additional pressure on an already tight labour market.
The Swiss Business Federation economiesuisse, the Swiss Trade Association and the Swiss Employers’ Association have endorsed the popular initiative, which was promoted by the Young Liberals as a response to what its backers describe as an increasingly “bloated federal government”.
Economiesuisse director Monika Rühl said the measure was needed to strengthen Switzerland’s competitiveness and give businesses greater room to operate.
“The economy needs relief now,” she said, arguing that limiting the expansion of the federal administration would help address growing pressures on companies.
Roland Müller, director of the Swiss Employers’ Association, said the rapid expansion of the civil service was making it harder for private employers to recruit skilled workers.
A study cited by the business groups found that the federal government pays an average salary premium of about 12% for comparable positions. Employers argue that this gives the public sector an advantage when competing for increasingly scarce talent.
Urs Furrer, head of the Swiss Trade Association, said the proposed administrative brake should be viewed alongside Switzerland’s existing debt and regulatory brakes.
He said small and medium-sized enterprises in particular were struggling to compete with the federal government on salaries and employment conditions.
Proposed cap linked to wage growth
The initiative would require federal personnel expenditure to grow no faster than Switzerland’s median wage in future.
Supporters say the mechanism would impose a similar discipline on government staffing costs to that already applied to public finances through the country’s debt brake.
The campaign argues that a tighter limit would also encourage parliament and the federal administration to simplify procedures, cut unnecessary work and reduce bureaucracy rather than continually expanding staffing levels.
The figures cited by the initiative’s organisers underline the scale of the increase. Between 2010 and 2024, the federal administration added more than 5,600 full-time positions, an increase of about 17%, according to Jonas Lüthy, president of the Young Liberals of Switzerland.
Spending on personnel and external services has increased even faster, rising by 32% to CHF7.1 billion over the same period.
Lüthy said the expansion had moved beyond normal administrative growth and had created what he described as a structural imbalance.
The initiative has attracted support from lawmakers across several political parties, who have joined the committee campaigning for the measure.
It was formally launched in mid-April. To force the proposal through Switzerland’s popular initiative process, campaigners must collect 100,000 valid signatures by October 14, 2027.
The debate is likely to sharpen the broader argument over the size of the Swiss state, with business groups insisting that restraining the growth of the federal workforce is essential to preserving competitiveness, while opponents are expected to question whether a rigid spending formula could limit the government’s ability to respond to future demands.