The case examines the labour market in the Upper Rhine region, consisting of regional entities such as Baden (DE), Alsace (FR), and Nordwestschweiz (CH). The case study was conducted by the Consortium leader, ÖIR, and by national experts.
The Upper Rhine region has long been a focal point for cross-border cooperation, with historical ties strengthened by the 1975 Bonn Agreement, which established institutional frameworks for tri-national collaboration. Spanning Germany, France, and Switzerland, the region is highly interconnected, with 128 border crossings and extensive transport links. This connectivity facilitates labour mobility, although significant imbalances exist between the three countries' labour markets. The Swiss sector, particularly around Basel, remains the primary destination for cross-border workers from France and Germany due to higher wages and lower social security costs for both employees and employers. Conversely, far fewer workers travel from Switzerland or Germany to work in France, where unemployment rates are higher.
A key particularity of the Upper Rhine region is its diversified economic specialisations. In Nordwestschweiz, a high concentration of cross-border workers is found in knowledge-intensive sectors such as pharmaceuticals, biotechnology, and electronics, due to the high concentration of pharmaceutical enterprises in the region. Meanwhile, cross-border workers in the German part of the region are more engaged in industrial sectors and commerce, with “hidden champions” (highly specialised SMEs) playing a significant role in the German economy. These complementarities between the regions create a dynamic yet unequal labour market that relies heavily on cross-border commuting to meet workforce demands, particularly in Switzerland.
Despite the region's strong tradition of cooperation, challenges remain in coordinating cross-border policies. Institutions like the Upper Rhine Conference and INFOBEST provide essential services to cross-border workers, yet further efforts are required to harmonise legal frameworks on issues like taxation and social security. The COVID-19 pandemic highlighted these gaps, initially leaving cross-border workers in difficult positions. However, cross-border institutions played a crucial role in addressing these challenges, advocating for better integration during the crisis.
The full-fledged case study report will be publicly available upon the official closure of the project, early 2025. In the meantime, should you have any comments or questions, please do not hesitate to contact us.
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