- The number of unemployed people in Switzerland rose in January.
- The rate is now 2.5 percent after 2.3 percent in the previous month of December.
- Despite the increase, the unemployment rate remains at a low level compared to the long term.
At the end of January, 113,175 people were registered as unemployed at the regional employment centers (RAV), as the State Secretariat for Economic Affairs (Seco) announced. That is 6,316 more than in December.
The rate is therefore at the upper end of expectations. The economists surveyed in advance by the AWP news agency had expected a value of 2.2 to 2.5 percent.
Oliver Schärli, head of the labor market/unemployment insurance department at Seco, spoke to the media of only a “slight increase”. In a long-term comparison, the rate is still at a low level. After the pandemic, the labor market was in very good shape. “What we are seeing now is a certain normalization,” says Schärli.
Adjusted for only slight increase
In addition, the current increase is primarily due to seasonal reasons. Adjusted for these seasonal effects, the number of unemployed actually increased only slightly, so that the adjusted unemployment rate remained at 2.2 percent.
Legend:
The unemployment rate rose slightly to 2.5 percent in January.
Keystone/Christian Beutler
As is well known, the unemployment rate is subject to seasonal fluctuations because there is less work in construction, agriculture and the catering industry in the winter months. This is hidden with the adjusted number.
Economic slowdown
Seco man Schärli nevertheless admitted that the current economic slowdown was having certain effects. The trend of lower demand for workers, which has been observed for several months, continued in January. As a result, unemployment among temporary employees has increased.
And short-time work has also recently shown signs of a slowdown in the global economy. The number of people affected was over 4,000 again in September, October and November – after falling below the 3,000 mark in August.
Short-time work tends to increase
More recent figures are not yet available. However, Schärli is assuming a further increase. The export-oriented machinery, electrical and metal industries, which are feeling the economic weakness in important sales markets, are particularly affected. According to Schärli, short-time work is still at a low level.
All in all, Schärli assumes that the current trends in the labor market will continue over the course of the year. An annual average unemployment rate of 2.3 percent is predicted, after being at a very low 2.0 percent in 2023. A further increase to 2.5 percent is forecast for 2025.