Demographic ageing is one of the biggest challenges facing Switzerland's public sector. The retirement of the 'baby boomer' generation and the country's low birth rate are leading to a shrinking working-age population, while the demand for labour is rising. Public administration is particularly affected, as its workforce is older than average. Without targeted measures, there is a risk of serious bottlenecks and shortages and, potentially, even a deterioration in public services. This study analyses the impact on Swiss Public Sector and outlines strategic approaches for how this demographic shift can be used as a catalyst for greater efficiency and innovation.
The Swiss labour market is characterised by a structural, demographically induced labour shortage. Across the economy, the proportion of workers who will reach retirement age in the next ten years stands at 20.7%. According to an analysis by the State Secretariat for Economic Affairs (SECO), administrative specialists, alongside health professions, IT specialists, and engineers, are more affected by the skills shortage than the average across all occupational groups. Our current study clearly illustrates this issue. Since 2019, new entrants to the labour market have not fully replaced Swiss public sector employees taking retirement. And a large number of older, experienced workers will be retiring over the next decade - which will only exacerbate existing shortages and presenting Swiss public sector with an ongoing challenge.
Demographic change is a major challenge for the Swiss postal service. The decline in employee numbers, especially in skilled occupations, is making it increasingly difficult to recruit skilled staff. This includes traditional operational roles, which are often neglected in the public debate around skills shortages.
Jesko Herre, , Head of HR Strategy and Head of HR Business Partners – Operations, Swiss Post
In a survey dating back to 2015, two-thirds of 54 federal agencies surveyed by the Swiss Federal Chancellery reported that demographic change represented a challenge to their operation. Almost 10 years later, the situation has worsened, with analysis by the Swiss Federal Office of Personnel indicating that almost one in three public sector employees will have retired by 2034. Some administrative units face a particularly high demographic replacement demand.
Personnel replacement demand of the Federal Office for Buildings and Logistics (BBL) by 2034
Personnel replacement demand of the Federal Office of Communications (OFCOM) by 2034
Personnel replacement demand of the Swiss Transportation Safety Investigation Board (STSB) by 2034
Demographic replacement demand in selected Swiss government departments by 2034 (in %). Source: Federal Office of Personnel (2025)
It’s not just about federal government, though: most cantonal administrations also face an above-average demographic replacement demand. The following Chart illustrates their future staffing requirements as the number of staff who are now aged over 50 as a proportion of total staffing of each canton.
These figures underscore the significant urgency for action at the cantonal level, with certain departments experiencing demographic replacement rates approaching half of their workforce.
In the Department of Economic Affairs of the Canton of St. Gallen, 49.6% of employees are over 50 years old.
In the Department of Economy and Employment (DEE) in the Canton of Geneva, 57.3% of employees are over 50 years old.
In the Directorate of Economic Affairs and Health of the Canton of Basel-Landschaft, 47.4% of employees are over 50 years old.
Quelle: Deloitte, 2025
The shortage of skilled labour is, however, exacerbated not only by retirement and non-replacement but also by the indirect impact of an ageing population. Older people are bigger consumers of health and care services, increasing the demand for staff in these areas even more markedly. High replacement demand in public sector roles, specialised skills profiles, and structural change in the demand for some public services are all placing many public institutions under pressure. Unless targeted measures are put in place, there is a risk of losing knowledge, expertise and innovativeness and creating shortages, thereby increasing the burden on remaining staff.
In the light of growing skills shortages, every time a member of staff leaves, we take the opportunity to assess how we can make optimal use of or further develop the skills we have within the organisation. This assessment forms the basis for decision-making about where we need to recruit externally to enable us to deliver our services. Heads of Department and the Head of HR also have permanent access to a ‘management cockpit’, with relevant staffing data, in particular to help them anticipate demographic replacement demand as effectively as possible.
HR Management Department, Canton of Valais
Demographic change is not only exacerbating skills shortages but also driving up the costs of healthcare, care for older people, and public infrastructure. But what looks at first glance like a threat could also prove to be a catalyst for greater efficiency and innovation if it prompts organisations to review their structures to future-proof themselves. Below, we propose three approaches on how this can be achieved – the detailed recommendations can be found in the study itself.