From 2001 to 2016, the proportion of people with tertiary education in the city of Zurich increased significantly from around 30% to 50%. This development took place at a much higher level than in the rest of the canton and the rest of Switzerland. The significant increase in high hourly wages in the city and canton of Zurich was similar and at a higher level than in the rest of Switzerland. Industries with particularly high hourly wages are finance/insurance and information/communication, which are disproportionately represented in the city of Zurich. The hospitality industry pays particularly low hourly wages.

The modern service society in our country in general and in the core cities in particular is experiencing a strong increase in higher levels of education in the context of social and economic changes. This expansion of education takes place in parallel with changes in the structure of the sector and, in some cases, in income levels. This article examines how education and income levels changed in the city of Zurich between 2001 and 2016, and whether these developments in the core city of Zurich have been different in comparison than in the rest of the canton and the rest of Switzerland. In addition, he investigates the questions of how the industry composition differs in the city, canton and rest of Switzerland, and in which industries the highest hourly wages are paid in the city of Zurich. For this purpose, the results of the Swiss Labour Force Survey (SAKE) of the Federal Statistical Office were evaluated.

Development of the level of training

In the city of Zurich, the proportion of people with a level of education at tertiary level (higher vocational training, university, ETH, university of applied sciences, university of teacher education) increased sharply between 2001 and 2016 from around 30% to 50%. The increase occurred especially in the last decade. At the same time, the proportion of people with the highest level of education at lower secondary level (especially those with only compulsory primary school or a household apprenticeship year) fell slightly from around 20% to 15%.

Since the level of education in our society has increased sharply, a specific look at the age group of 30- to 39-year-olds is of interest. This is the youngest generation with completed training, in which the changes are most evident. In the city of Zurich, a particularly high proportion of this generation with tertiary education is noticeable: it increased from around 50% to about 70%, which means that the vast majority of this age group in the city of Zurich now has a tertiary degree. Here, too, the increase took place in advance in the last decade. In this age group, a relatively small and stable proportion of 10% has a level of education only at lower secondary level.

Looking again at the total population, there was also an increase in tertiary education in the rest of the canton (growth from 20% to 40%) and the rest of Switzerland (increase from 20% to 30%), but at a much lower level. Here, too, the proportion of people with only lower secondary education decreased, although it is at a slightly lower level in the city and canton of Zurich than in the rest of Switzerland. In the rest of the canton and in the rest of Switzerland, the proportion of tertiary education among 30-39 year olds is also above average, but also here at a much lower level than in the city of Zurich.

Development of gross earned income per hour worked

Gross earned income per hour worked is a better indicator of relative remuneration than total earned income in a society with many part-time employees and widely varying volumes of work. At the same time, it is an indicator of the productivity of the corresponding work. Therefore, this indicator will be examined further below.

In the city of Zurich, the development from 2001 to 2016 shows a clear increase in the proportion of high hourly wage levels above 50 francs, from about 20% to 30%. It is relevant for the interpretation that in the last decade there has hardly been a devaluation of wages due to inflation, but before that. This means that the increase in the share of high nominal wages over the last decade actually corresponded to an increase in real hourly wages. Parallel to this increase, there was a significant decrease in the proportion of low hourly wages (up to CHF 25 per hour) from 20% to just over 10% in the city of Zurich.

In the age group of 30- to 39-year-olds in the city of Zurich, the high hourly wages over 50 francs show a similar increase in the proportion as in the entire city of Zurich population (from 20% to 30%). The proportion of low wages also decreased in this age group. During the observation period, it was consistently lower than in the general population, and it was lower in the city of Zurich than outside.

In the rest of the canton, the proportion of high hourly wages of over CHF 50 among the total population rose very similarly to that of the city of Zurich; there was an increase in the share between 2001 and 2016 from 20% to just under 30%. There was also an increase in the rest of Switzerland, albeit at a lower level (from 15% to 20%). The share of low wages in the rest of the canton of Zurich developed very similarly to the city of Zurich and also at a similar level, while the share in the rest of Switzerland also decreased, but remained consistently higher than in the city and canton of Zurich  (reduction from 25% to about 15%).

These developments reflect the role of the entire greater Zurich area as an economic engine of Switzerland with comparatively high added value and remuneration.

Industry-specific hourly wages and differences in industry mix

Differences in the industry composition between the city of Zurich, the rest of the canton and the rest of Switzerland are also an explanatory factor for the previously commented differences in hourly wages. Therefore, they have been considered in more detail.

Compared to the rest of the canton and the rest of Switzerland, the city of Zurich employs a disproportionate number of employees work in the areas of education/teaching, freelance/ scientific/technical services, financial and insurance services as well as information and communication.

In the city of Zurich, 30- to 39-year-olds work disproportionately often in the areas of education/teaching and information/communication compared to the general population. A similar picture to that of 30-39 year olds, but even more pronounced, can also be seen in those people who have moved to Switzerland in the last three years. In addition, freelance/scientific/technical services are also represented above average here.

High hourly wages: finance/insurance and information/communication

Also in order to better explain the overall distribution of hourly wages, it was also analyzed in more detail as of 2016 which hourly wages are paid in selected important industries.

The largest proportion of high hourly wages over CHF 50 is paid for employees living in the city of Zurich in the financial and insurance services as well as information and communication sectors. Among employees in the financial and insurance services sector, the proportion of high wages in the rest of the canton of Zurich is even slightly higher than in the city of Zurich. In the area of information and communication, however, there are no such differences between the city and the rest of the canton. In the rest of Switzerland, the proportion of correspondingly high hourly wages in both of these sectors is lower than in the Zurich area.

In the city of Zurich, the proportion of high hourly wages above CHF 50 in the sectors of freelance/scientific/technical services, education/teaching and other economic services is roughly in the midfield.

In other economic services, on the other hand, there is a disproportionate share of low hourly wages. The hospitality industry has particularly few high and many low hourly wages.

Different wages in the industry, depending on the location

In the information and communication as well as in the financial and insurance sector, there are significantly more high and less low wages in the city and canton of Zurich than in the rest of Switzerland. The top wages of the financial sector are even more widespread in the rest of the canton of Zurich than in the city of Zurich. In the case of freelance, scientific and technical service occupations, the city of Zurich is as likely to have top hourly wages as in the rest of Switzerland, but somewhat less frequently than in the rest of the canton of Zurich. In the case of other economic services, on the other hand, there are significantly more people with high hourly wages above CHF 50 in the city of Zurich than in the rest of the canton and the rest of Switzerland. In the area of education and teaching, the high hourly wages in the city of Zurich are represented as often as in the rest of Switzerland, but less often than in the rest of the canton. In the hospitality industry, there are both less very high and less very low wages in the city of Zurich than elsewhere.

Industries with high hourly wages and high productivity in the greater Zurich area

The proportion of people working in high-yield sectors with correspondingly high hourly wages in the city of Zurich is similar to that in the rest of the canton and higher than in the rest of Switzerland. Overall, the entire greater Zurich area is an area with a particularly high number of high hourly wages, which come from profitable industries.

Higher level of education, but not necessarily higher hourly wages

It is impressive how much the average level of training has changed in all the regions studied since 2001. These higher educations are increasingly required for many professions in these industries.

While the proportion of higher education in the city of Zurich is significantly higher than outside, there are no such differences in hourly wages, at least compared to the rest of the canton of Zurich. Partly this may be associated with the lower age of the employed (career start in the core city), but partly also with a slightly different professional and sector mix of people with tertiary education within and outside the city of Zurich.