Optimism on the Swiss Labor Market for the Start of the Year

Employers in most regions, but especially in Zurich, Espace Mittelland and Northwestern Switzerland, expect to expand their workforces during the first three months of the year. Staff numbers are expected to rise in all categories of company, especially among small and medium-sized enterprises (SMEs). "This positive outlook demonstrates that the Swiss labor market is gradually reflecting the economic recovery," comments Leif Agnéus, General Manager of Manpower Switzerland. "The strengthening of the global economy, growth in the eurozone and the weakening of the Swiss franc appear to be having a positive impact on Swiss employers. Export-oriented companies in particular are showing renewed confidence."

Increasingly dynamic labor market in Espace Mittelland

Five of the total of seven regions surveyed anticipate a positive employment outlook for the first three months of 2018. Employers in the Zurich region (+7 %) and Espace Mittelland (+6 %), where hiring momentum has picked up significantly after a year of negative results, are particularly optimistic, both quarter-over-quarter (10 percentage points) and year-over-year (11 percentage points). For their part, employers in Northwestern Switzerland (+5 %) provide the most optimistic forecasts since 2015. Only Central Switzerland (-4 %) records a negative outlook. Employers in the Lake Geneva region (0 %) are cautious, even though eight companies out of ten foresee no change at all in their staffing levels.

Upward trend in more than half of the sectors

Employers in seven of the total of ten economic sectors participating in the study expect their headcount to increase over the course of the first quarter of 2018. This is particularly true in banking, insurance, real estate and services (+10 %) and manufacturing (+9 %), which also saw the strongest quarter-over-quarter (26 percentage points) and year-over-year (11 percentage points) improvements. Hotels and restaurants (+7 %) posted its best performance in nearly three years. In contrast, forecasts are down for three sectors, notably construction (-4 %), which also shows a quarter-over-quarter and year-over-year decline (5 percentage points each). "The optimistic employment outlook in manufacturing and hotels and restaurants is clearly due to the weaker Swiss franc," emphasizes Leif Agnéus.

Swiss SMEs intend to recruit more at the beginning of 2018

Among the four categories of companies surveyed, large companies are planning the most new hires (+12 %) for the first quarter of 2018, followed by small and medium-sized companies (+9 % each). This is the best result in over three years for small businesses and the strongest quarter-over-quarter and year-over-year growth (7, and 12 percentage points, respectively). Only the employers of the smallest companies (+1 %) are more cautious.

Switzerland reaches a similar level to its European neighbors

The employment outlook of Swiss employers (+3 %) reaches a value close to that of neighboring countries: employers in Germany continue to show confidence (+5 %), as do those in France (+2 %). Italy and Austria expect no change (0 %).

Source and further information: Manpower