The role of the University in the economic well-being. Reflections of Dean Giovanni Pica

What tools should students obtain during their economics education? Additionally, what objectives does the Faculty of Economics at Università della Svizzera italiana (USI) aim to achieve to meet the needs of today's society? Dean Giovanni Pica addressed these topics in an interview by Corriere del Ticino.

One of the main objectives of the Faculty of Economics at USI is to cultivate a critical and analytical mindset in its students. This is a vital skill for understanding complex economic phenomena and addressing future challenges, as explained by Dean Giovanni Pica: "The younger generations face significant challenges, including climate change, food and water crises, migration issues, and an ageing population, among others. The Faculty of Economics at USI equips these new generations with the tools needed to understand and navigate the increasing complexities of the modern world. The goal is to empower them to contribute to creating a sustainable society from environmental, social, and financial perspectives."

The Dean also emphasised the importance for the Faculty of maintaining a link with the region and context: "We have a unit that has the task of observing the trend of the regional economy, including the labour market: the Institute for Economic Research (IRE) carries out these applied research activities on behalf of the Department of Finance and Economics (DFE)." It is precisely to welcome the needs and voices coming from the territory that the Faculty has recently introduced a course in English within the Bachelor in Economics and promoted the development of the House of Sustainability of USI in Airolo.

However, the role of the Faculty is also to contribute to resolving the major economic problems facing our society: "The Faculty of Economics contributes to the search for solutions to economic problems through various channels. The first is research, which provides data and models to understand the constantly evolving dynamics of the economic world. The second is collaboration with governments and institutions, offering solutions based on empirical evidence on issues such as fiscal policies, market regulation and sustainable development. A concrete example is the IRE report for the cantonal authorities on the minimum wage, recently introduced in Ticino. A further contribution is made through teaching, which prepares future managers for the economic challenges they will encounter in companies, international organisations, and public institutions. Additionally, the Faculty plays a crucial role in disseminating information, helping to shape public opinion by sharing research findings and participating in economic discussions across local, national, and international media," explained Dean Giovanni Pica.

Analysing the labour market situation in Switzerland and Ticino, the Dean noted that "on the wage front, growth can be observed in both Switzerland and Ticino. However, a significant wage gap remains between Ticino and the rest of the country. This growth is primarily driven by an increase in higher wages, specifically those that exceed the median value." Although slightly up, the unemployment rate would seem to indicate a dynamic labour market: "A dynamic labour market, like that of Switzerland, can effectively reabsorb unemployed individuals, making it a successful model. To combat job insecurity, the focus should be on education and the ability to engage in continuous learning throughout one's career. In this regard, university education is essential, not only for its practical components but also for its broad theoretical framework. By equipping students with the tools needed for lifelong learning, universities prepare individuals to navigate the rapid technological advancements and changes in the labour market."

Dean Pica, however, also identified some problems in the current Swiss labour market: "The main critical issues are twofold: first, the growing wage disparities, which are amplifying inequalities and threatening social cohesion; and second, the ongoing lack of equal pay between men and women. To address this gap, it is crucial to implement concrete measures that support female participation in the labour market, such as increasing the availability of childcare facilities. However, genuine change must also occur at a cultural level. Society must evolve and embrace the principle of interchangeable roles between men and women, breaking down deep-rooted stereotypes and barriers." Further difficulties could arise due to the effects of the tariffs introduced by the United States on Swiss products: a possible recession could cause a drop in the demand for labour by companies.

At USI, research on the labour market is conducted from various perspectives. This includes examining the evolution of skills required by companies, addressing gender discrimination by analysing its causes and identifying measures to counter it, regulating the labour market, and studying the impact of immigration-particularly focusing on cross-border workers. Additionally, the research explores the role of an ageing population in shaping productivity and participation in the labour market.

Finally, Dean Giovanni Pica reflected on the possible effects of Artificial Intelligence (AI) on the world of work: "Making predictions with certainty is complex, but, likely, artificial intelligence (AI) will significantly impact the labour market. Some estimates suggest that over a third of jobs could be affected by AI, leading to very different outcomes compared to previous technological innovations. AI stands out because it can perform tasks typically reserved for highly qualified professionals, such as data analysis, medical diagnosis, and the drafting of complex texts. This could result in the transformation of numerous professions and necessitate reevaluating the skills required in the future job market.."

The full interview with Giovanni Pica on Il Corriere del Ticino, is available at the following link. (Italian only)