Temporary market down almost 8 percent
According to the Swiss Staffing Index, staffing companies closed the third quarter of 2023 with a year-on-year decline of 7.6% in the temporary staffing business. Sales of permanent positions increased by 6.8 percent.
The combination of labor shortages and a slowing economy is causing difficulties for temporary staffing firms. There is a lack of suitable candidates for open vacancies. In industry, demand for temporary staff is falling in line with order backlogs. The permanent placement business, on the other hand, is running smoothly. If companies are short of skilled workers, they are looking for support from personnel service providers because the labor market has dried up. This is resulting in rising sales.
Economy: Soft landing of the Swiss labor market on the horizon
The red figures in the temporary staffing industry are due to labor shortages for the third quarter in a row. Despite recent reports of layoffs in industrial companies, the Swiss labor market is developing robustly, as Manpower's Labor Market Barometer shows: 47 percent of companies are planning to expand their workforce, while only 9 percent are planning a decrease. In an international comparison, Switzerland occupies a top position with this ratio in the Manpower study. Things are going particularly well in communications services, transportation and logistics, and energy and utilities. The Adecco Group Swiss Job Market Index also records highs for the entire labor market - including the industrial sector. Particularly in demand are plant operators, assembly workers, technicians and automation engineers. Dr. Marius Osterfeld, economist at swissstaffing, knows: "Even though layoffs are difficult for those affected in any situation, the starting point for job searches remains optimal despite the economic downturn."
Outlook: stable starting position with geopolitical risks
Switzerland has performed courageously so far in the face of economic challenges. In particular, the liberal labor market provides stability, which supports domestic consumption. At the same time, problems with supply chains and the price level of intermediate products have eased. This lays the foundation for a recovery. Geopolitical risks remain high. Only 23 percent expect business activity to increase in the coming six months. The vast majority, 43 percent, expect stagnation.
Source: www.swissstaffing.ch
