Ticino - Economy

Economy

Tertiary sector workers make up 76.5% of the Ticinese workforce, compared to the Swiss average of 67.1%. Commerce (23.1%), tourism (10.1%) and financial activities (3.9) are all important for the local economy, while the contribution from agriculture and fishing is marginal, employing 6.5% of the workforce on a Swiss average of 15.4%.

Lugano is Switzerland's third largest financial center after Zurich and Geneva. The banking industry alone has 8,400 employees and generates 17% of the gross cantonal product. Because of Ticino's shared language and culture, its financial industry has very close ties to Italy. In 2008, Ticino had an unemployment rate of 5%, higher than in rest of Switzerland, where it was estimated at 3.4%, and particularly high for foreigners (over 8%).

Frontalieri, commuter workers living in Italy (mostly in the provinces of Varese and Como) but working regularly in Ticino, form a large part (over 20%) of the workforce, far larger than in the rest of Switzerland, where the rate is below 5%. Foreigners in general hold 44.3% of all the jobs, again a much higher rate than elsewhere in the Confederation (27%). Frontalieri are usually paid less than Swiss workers for their jobs, and tend to serve as low-cost labor.

Italy is by far Ticino's most important foreign trading partner, but there's a huge trade deficit between imports (5 billion CHF) and exports (1.9 billion). Many Italian companies relocate to Ticino, either temporarily or permanently, seeking lower taxes and an efficient bureaucracy: just as many Ticinese entrepreneurs doing business in Italy complain of red tape and widespread protectionism.