Zurich (AWP) – The prospects for hiring fell significantly in Switzerland in July, the economists of the KOF cyclical research center on Tuesday warned. Industry, trade, as well as hotels and catering plan to reduce their workforce.
The employment indicator, compiled by the KOF from the responses of 4,400 companies, fell sharply in the third quarter to 0.3 points, after 1.0 points (revised 0.6 points) in the previous partial, said the Zurich Institute in a press release. This labor market barometer has thus reached its lowest level since the beginning of 2021.
“The current value indicates that the number of jobs in Switzerland should increase very little, or even slightly back in the coming months,” said KOF experts.
According to the latter, “a rapid resumption of the labor market is not (…) not expected to be immediately. The prospects for empowerment in the manufacturing industry, wholesale and retail trade as well as hotel and catering have a negative influence on the indicator as a whole”.
Compared to the previous quarter, the companies interviewed were more cautious in their assessment of the current employment situation and in their perspectives.
In the field of projects, construction and other services, companies tabling on an increase in staff dominate however. Banks also display “a slight optimism”.
In June, the unemployment rate remained stable at 2.7%.
For this year, the State Secretariat for the Economy (SECO) had recently noted its unemployment rate forecast at 2.9% on average and 3.2% for 2026, against 2.8% for each of these two periods previously. In 2024, the unemployed rate was 2.4%.
KOF tables in 2025 on an unemployment rate at 2.9% and 3.0% the following year.
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