Employment trends: Switzerland is booming compared to Europe
Swiss employers are confident about the third quarter of 2024; no other country in Europe has such a high net employment outlook. Skilled workers are particularly sought after in the energy and utilities sector as well as in communication services.
The gradual recovery in foreign demand, lower inflation and the easing of monetary policy are stimulating the economy in Switzerland. Although this positive development is encouraging, it is further exacerbating the shortage of skilled workers, as the latest ManpowerGroup survey on employment prospects shows. Accordingly, companies are looking even harder for skilled workers: at 34%, the seasonally adjusted net employment outlook for Q3 2024 is up again compared to both the second quarter (29%) and the previous year (Q3 2023: 27%).
Employers in Switzerland are therefore much more optimistic about the future than their European counterparts; no other country in the Europe, Middle East and Africa region (net employment outlook 18%) has better employment prospects. In neighboring France (24%), Germany (23%) and Austria (20%), the employment outlook is also above the EMEA average. Italy is below the national average at 16%.
Swiss employment trends: regional differences
The positive economic conditions are having a positive impact at different levels in six out of seven Swiss regions. As the aforementioned survey on employment trends, which was conducted in more than 570 companies, shows, net hiring intentions in Zurich, Northwestern Switzerland, Eastern Switzerland and the Lake Geneva region are above the Swiss average. This is probably due to the demand for employees in the finance, insurance and real estate sectors.
Central Switzerland and Espace Mittelland, on the other hand, are falling, but are still recording high levels of employment intentions. In Ticino, however, as in Q2 2024 (-14%), companies expect hiring activity to decline due to the slowdown in the secondary sector.
Energy and utilities sector urgently looking for personnel
A positive net employment outlook is forecast for Q3 2024 in all sectors surveyed. From Q2 to Q3 2024, employees in the energy and utilities (+39 percentage points), communication services (+26 percentage points) and information technology (+14 percentage points) sectors are benefiting from employers' hiring intentions. In the other sectors, the net employment outlook is declining compared to Q2 2024 despite positive values.
"Energy and utility companies are likely to expect a positive vote on the federal law on a secure electricity supply from renewable energies and will need skilled workers accordingly. In view of the significant changes in the Swiss banking sector, the net employment outlook of 42% in the area of finance & real estate seems surprising. However, the digital transformation and the further development of business models among financial service providers require new skills and specialists. In the real estate sector, the market outlook is very good, so hiring is possible," says Eric Jeannerod, Country Manager ManpowerGroup Switzerland.
In terms of company size, all companies are planning to hire. Companies with 250-999 employees (47%) have the highest net employment outlook, followed by companies with 50-249 employees (45%) and companies with fewer than 10 employees (39%). The employment outlook for companies with 1000-4999 employees has deteriorated noticeably. While the outlook was still at 33% in Q2 2024, it was only 8% in Q3 2024. This is likely due to globalization. The stronger a company's presence on the global markets, the more it is affected by the current geopolitical uncertainties.
Artificial intelligence causes employees little concern
"When it comes to the shortage of skilled workers, artificial intelligence should not be overlooked as an 'additional workforce'. 57% of the companies surveyed stated that they are early or current adopters of technologies such as artificial intelligence or tools such as ChatGPT, machine learning and virtual reality. This high level of integration of artificial intelligence shows that Swiss companies want to take advantage of the benefits of artificial intelligence," says Eric Jeannerod.
Only a minority of employees seem to have concerns that artificial intelligence could jeopardize jobs. The majority of managers and specialists have a positive attitude towards the technology. Employees in production companies or those who are in direct contact with the public are more concerned. "In my view, the importance of professions where human contact and manual activities are essential - such as in the catering or care professions - will increase. Artificial intelligence and automation will ease the burden here," emphasizes Eric Jeannerod.
This positive attitude is reflected in the challenges that companies see in the introduction of artificial intelligence. Only around a quarter (24%) of respondents fear that employees will resist the change. Among managers, around a fifth (21%) see a corresponding risk. The challenges relating to data protection and regulations (36%), the lack of suitable tools and platforms (29%) or high investments (28%) as well as the complexity of introducing artificial intelligence are seen as more significant.
Source: ManpowerGroup
