Labour Market in Switzerland Recovering Faster Than Expected

Quicker Recovery

                A survey published by newspaper Sonntags Zeitung on Sunday suggested that recovery of labour market in Switzerland after the pandemic of COVID-19 might be quicker than previously expected. A survey was conducted among 18,000 companies by the Federal Statistical Office. According to data around 71% of companies plans to maintain number of stuff in third quarter of 2020, whereas 9% of firms wants to increase number of employees. Good news is that only 7% of companies stated it will cut jobs in Q3. Such number is lower than during financial crisis of 2008 when 12% of firms surveyed planned to let to go some employees in first quarter of 2009.

New Job Advertisements

                Apart from the aforementioned survey, another indicator that labour market is doing not that bad, is the number of newly posted advertisements for jobs, as analysed by X28 and Novalytica companies. In period between June and August, which is after restrictions imposed during lockdown were eased, the number of new advertisement for employees increased by 50% - to 39,915 from 26,490. Previously, in period between April and June, job postings decreased by 27%, as back then HR company Adecco Switzerland posted. The situation seemed much worse than in 2008, as collapse in number of ads was more sudden. Now it looks it was sudden and short-term. Though number of vacancies is still lower than last years – in August 2020 number of advertised jobs was lower by 15% than previous year, these signs shows the situation is not as grave as predicted. Also the Swiss economy is taking pandemic better than its neighbours, as recent data showed, even that high CHF exchange rate has bad impact on it.

Some Companies to Make Jobs Cut

                Obviously, in spite of fact that majority of companies in Switzerland planned to keep number of employees, some firms announced during the pandemic massive cut jobs. Swiss lift maker Schindler plans to let go 2,000 employees worldwide till 2022, with 200 in Switzerland. The Sulzer industrial group plans to cut 55 jobs in Switzerland, whereas airport technical services firm SR Technics s much as 500 at airports in Zurich, Basel and Geneva. Also, German tour operator TUI will cut off 70 jobs in Switzerland and tour operator Hoteplan plans to cut around 170 jobs in the country, with 430 worldwide.

Some Sectors Worse Than Others

                Some sectors of the economy are more impacted by COVID-19 than others, and in those reduction of employment is inevitable, and number of cut jobs might be more significant. The most pessimistic outlook is for watchmakers, machinery manufacturers, the metal refiners, logistics firms, landlords and hoteliers. According to data reduction of jobs might be there at the level between 11% and 17%. In better situation are sectors like banking, fintech, health, social, education, insurance, and public administration.