Labor market barometer: Who Hires Employees?
Nine out of ten employers in Switzerland expect staffing levels to remain constant until the end of the year. This is shown by Manpower's latest labor market barometer. Another finding is that eastern Switzerland is the driving force behind employment in the coming quarter.
According to the latest Manpower Labor Market Barometer, Swiss employers are not very optimistic about hiring new employees in the fourth quarter of 2017. With a net labor market forecast of zero percent, Switzerland brings up the rear in international comparisons. "The timid labor market forecast of Swiss employers may come as a surprise when looking at the economic indicators published at the end of summer," comments Leif Agnéus, General Manager of Manpower Switzerland. "Nevertheless, almost 90 percent of the employers surveyed expect to maintain their staffing levels, at least until the end of the year. However, the current survey shows significant differences by region and sector. We interpret this as a slowdown in hiring, not as a sign of declining headcount," Leif Agnéus further explains.
Eastern Switzerland: top performer among the regions
Three of the seven regions surveyed anticipate a positive employment outlook by the end of the year. Eastern Switzerland is clearly in the green (+12 %): employers in eastern Switzerland are more optimistic than they have been for seven years. The region also shows the strongest quarter-on-quarter and year-on-year increases (12 and 13 percentage points, respectively). Employers in the Zurich and Central Switzerland regions are also optimistic (+6 % each). By contrast, the survey results in Ticino (-6 %), the Lake Geneva region (-5 %) and the Espace Mittelland (-5 %) are weakening.
Positive outlook in more than half of the sectors
The quarterly Manpower Labor Market Barometer examines the employment outlook of private and public companies in 43 countries and territories based on the expected development of staff numbers during the upcoming quarter. Swiss employers in six of the ten business sectors participating in the survey expect their workforces to increase over the course of the fourth quarter of 2017. The energy and water supply sector (+8 %) achieves the highest net labor market forecast as well as the strongest year-on-year increase (8 percentage points). Retail employers are regaining confidence: Their score reaches the strongest quarter-on-quarter increase (12 percentage points).
Employment climate in the manufacturing industry appears gloomier than ever
The forecasts in the manufacturing industry (-17 %) are the lowest in negative territory, which at the same time records its weakest result since the introduction of the labor market barometer in Switzerland over twelve years ago. Compared with the previous quarter, there was an abrupt drop (28 percentage points) and the figure also fell significantly compared with the fourth quarter of 2016 (15 percentage points). "Not even after the abolition of the minimum euro-franc exchange rate did employers in the manufacturing industry show such pessimism," emphasizes Leif Agnéus.
Labor market barometer with robust forecasts in large companies
Among the four categories of companies surveyed, large companies are the most optimistic (+12 %) and also achieve the most substantial year-on-year increase (6 percentage points). Medium-sized companies also expect to expand their workforce (+5 %). On the other hand, employers at the smallest companies (-1 %) are more pessimistic, with their outlook weakening both quarter-on-quarter (5 percentage points) and year-on-year (2 percentage points).
Bottom of the league in international comparison - but still stable
With a net labor market forecast of zero percent, Switzerland brings up the rear among the 43 participating countries. Nevertheless, Leif Agnéus sees the positive: "Switzerland has weathered the economic crisis relatively well. Compared with other countries that experienced greater fluctuations, its employment prospects have therefore remained constant during this period. Switzerland's result can therefore be seen as a sign of stability." Neighboring countries offer good opportunities for job seekers. Employers in Germany continue to show confidence (+5 %), French employers report their best survey result (+4 %) since the third quarter of 2015, and Italy (+3 %) reports its highest reading in nearly seven years.
Source and further information: www.manpower.ch
