Economy News

Swiss Labour Market

Bern, 2015/06 – The consequences of the strong franc are actually superimposed on the Swiss labor market by the seasonal effects. Accordingly, the registred number of unemployed persons on the regional employment centers (RAV) came down in May compared with the previous month by 4782 to 136 349. Compared to last year, however, an increase of 4,6% was recorded.

Increase over the previous year
According to the State Secretary for Economic Affairs (Seco), the unemployment rate fell to 3.2% from 3.3% in April. However, compared with the previous year it was 0.2 percentage points higher. Similarly, the youth unemployment rate, regressed to 2.9% from 3.1%. Compared to last year, the increase was also 0.2 percentage points. Seasonally adjusted, the unemployment rate remained from the previous month at 3.3%. Previously, she had moved all over a year between 3.1% and 3.2%.

More short-time working
The abolition of the minimum exchange rate for the euro is directly reflected in the increase in short-time working. According to Seco 5,066 people were affected by reduced working hours in March which is representing an increase of 41% over the previous month. The number of companies with short-time work increased 29.8% to 519.

Deterioration expected
In the summer a reversal in the Swiss labor market can be expected, as the seasonal effects disappear. The leading indicators point to a worsening situation. Therefore Seco didn’t change the forecast given in March for an average unemployment rate of 3.3% for the current year.