Nominal wage rigidity hinders real wage adjustments, impacting full-time workers.
Firms are usually hesitant to lower wages when the economy is doing well, but in Switzerland, even with low economic growth, they still don't cut pay. This wage rigidity makes it hard for real wages to adjust. Full-time workers who stick with the same employer face almost complete wage rigidity, but those who switch jobs don't. Without this wage rigidity, real wages would change more with unemployment.