Economic slowdown slows job growth

The Swiss economy was hit by an economic slowdown last year, which also had a significant impact on the labor market. This resulted in moderate annual growth of 3% in 2023. The decline in the last quarter of 2023 (Q4 2023) is particularly striking, with the Adecco Group Swiss Job Market Index experiencing the sharpest fall of the year. Compared to the previous quarter (Q3 2023), the index falls by 4% and is also 3% lower than in the same quarter of the previous year (Q4 2022).

"Both the decline in employment growth and the rise in the unemployment rate point to a slowdown in growth momentum on the Swiss labor market. The Adecco Swiss Job Market Index underlines this development. In 2023, the job market grew by just 3%. Despite this slowdown, the number of vacancies remains at a historically high level and the unemployment rate is still relatively low in comparison," says Marcel Keller, Country President Adecco Group Switzerland.

Skilled trades and unskilled workers: Increased demand for construction professions 

The subdued development of the Swiss labor market is particularly evident when analyzing the job trends in the various occupational groups. A look at the annual changes in job vacancies in the various occupational groups makes it clear that the economic slowdown has affected the demand for skilled workers in the respective occupational groups to varying degrees. 

A particularly positive trend can be seen in the skilled trades and unskilled workers, which led the way with growth of +13%. This occupational group includes, for example, polymechanics, assembly electricians and warehouse workers. This is closely followed by service and sales specialists, which also recorded significant growth of +12%. This group includes professions such as service specialists, sales assistants and travel guides. Technical specialists also recorded an increase of +10% compared to the previous year. This occupational group includes professions such as process technicians, design engineers and automation technicians.

"The year 2023 was dominated by unskilled labor, skilled trades and service professions. Despite economic challenges, these workers experienced an increase in demand. This emphasizes the essential role of these professions for the Swiss economy," says Martin Meyer, VP Adecco Operations Switzerland.

In contrast to the occupational groups with positive development, those occupational groups that show negative trends in job development are particularly noticeable this year. At the top of this group are managers with a decline of 12%. Managers are a very broadly defined occupational group. For example, this group includes professions such as managing directors, HR managers, master butchers and circus directors. Various factors appear to be contributing to the ongoing negative development of this occupational group. One aspect is the trend towards flatter organizational structures, which reduces the demand for managers. Furthermore, management positions are often not advertised publicly, but are instead filled via informal networks. 

Another factor is the shortage of skilled workers, which is causing companies to focus on hiring new employees before looking for new managers. In addition to managers, office and administrative professionals also saw a decline in job postings of 7%, including occupations such as HR assistant, clerk and real estate manager. The university professions STEM and health also recorded a decline of 3%, which include, for example, business IT specialists, architects and process engineers. 

Business and social professions are the only occupational group that did not show any significant change in the number of jobs compared to the previous year. This group includes professions such as lawyers, psychologists and financial administrators. 

"The year 2023 proved to be particularly difficult for administrative specialists and managers in particular, due to a significant decline in the number of vacancies in these occupational groups compared to the previous year. In contrast, skilled trades and unskilled workers experienced an increase in demand. The subgroup of construction and finishing professions in particular benefited from this development. Although the business situation in the construction sector has cooled slightly, according to the KOF Economic Survey of October 2023, almost half of construction companies state that the shortage of personnel continues to be an obstacle to production," emphasizes Yanik Kipfer, Job Market Monitor Switzerland.

Northwestern Switzerland records strongest job growth

The labor markets in the major Swiss regions also paint a heterogeneous picture of job growth, as a comparison of the years 2022 and 2023 makes clear. Northwestern Switzerland stands out at the top of the ranking with growth of 14%, closely followed by Espace Mittelland with 7% and Central Switzerland with 5%. In Eastern Switzerland, on the other hand, job advertisements remained at the same level as the previous year. A slight decline in job advertisements was recorded in Zurich with a fall of 1% and Southwestern Switzerland with a fall of 4%. 

While in Espace Mittelland and Southwestern Switzerland, technical specialists in particular (Espace Mittelland: +29%, Southwestern Switzerland: +15%) are benefiting from job growth, in Central Switzerland and Zurich it is mainly skilled trades and unskilled workers (Central Switzerland: +32%, Zurich: +17%). In Northwestern Switzerland, the main beneficiaries are service and sales specialists, who will see 36% more jobs this year than in 2022, while managers in Eastern Switzerland will benefit from a slight increase in demand of 3%. 

Demand for office and administration specialists was particularly negative in Espace Mittelland (-17%), Eastern Switzerland (-6%) and Northwestern Switzerland (-5%). In Southwestern Switzerland (-39%) and Zurich (-14%), managers in particular were affected by a noticeable decline in demand, while in Central Switzerland it was the university professions STEM and healthcare (-31%).

Source: www.adeccogroup.com