Swiss labor market cools down more significantly
Published: Monday, Jul 29th 2024, 10:10
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The recent economic slowdown has reversed the trend on the Swiss labor market. After an already weak first quarter, the decline in the number of permanent and temporary jobs placed accelerated in the second quarter.
The "Swiss Staffingindex" published on Monday by Swissstaffing, the association of recruitment agencies, shows that turnover in the permanent placement business fell by almost 21% in the second quarter. The strength and speed of the new trend came as a surprise, according to the report. The slowing economy is making the job search more difficult.
According to Swissstaffing, the drop in hours worked in the temporary market is also significant at 4.9%. The double decline in permanent and temporary positions signals an economic downturn. Due to the poorer order situation, companies are hesitant to create new jobs and would also need fewer temporary staff.
Skills shortage only in specific occupational profiles
The days of labor shortages are over, according to Swissstaffing. Companies are currently acting in an extremely cost-conscious manner. Instead of recruiting new employees, they are merging positions or looking for bridging solutions. As far as the long-standing shortage of skilled workers is concerned, this still exists in specific job profiles, according to the association.
The IT sector is cited as an example. Here, the number of job advertisements fell by a quarter compared to the second quarter of 2023. However, the demand for network architects remains unbroken among personnel service providers. Here, the number of job advertisements rose by almost a third within a year.
The labor market also remains tight in the healthcare sector due to demographic change, and carpenters are also in high demand.
Paradox in the construction industry
However, Swissstaffing sees a paradox in the construction industry: construction is weakening despite a hot housing market with rising prices for rents and property. The market situation here is difficult, they say. Contractors are currently able to handle the majority of orders with their permanent staff. As a result, the number of temporary workers hired out is significantly lower than the previous year for the first time in years, be it crane operators, floor layers or unskilled workers.
As a consequence of the new labor market phase, the association sees a shift in the balance between employers and employees back to the former. Ongoing training as an investment in their own employability is becoming increasingly important for employees.
©Keystone/SDA
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