Swiss Labour Market Takes A Hit In Q1

Swiss Labour Market Takes A Hit In Q1

Tue, Apr 30th 2024

The Swiss labor market has shown signs of contraction in the early months of 2024, with both temporary and permanent job sectors experiencing declines.

KEYSTONE/Michael Buholzer

The economic downturn has visibly impacted the Swiss labor market as of the first quarter of 2024. The sectors for both temporary and permanent jobs have seen reductions, although the demand for skilled workers continues to hold strong.

From January to March, the temporary staffing sector recorded a 4.5% decline compared to the same period last year. The permanent staffing market experienced an even steeper decline of 6.3%, as reported by the “Swiss Staffingindex” from Swissstaffing, the association of recruitment agencies.

This downturn is attributed to a decrease in orders, leading companies to reduce their reliance on short-term staff and postpone filling permanent roles. This contraction marks a significant shift from the relatively stable conditions seen during the pandemic years.

Despite the downturn, sectors such as IT, industry, and healthcare still show a robust demand for skilled professionals. This ongoing need is driven by demographic changes and the rapid pace of digitalization, which continue to reshape skill requirements in the workforce.

Looking forward, about 40% of local personnel service providers anticipate growth in the temporary sector over the next six months, while only 15% foresee an increase in permanent staffing positions. This indicates a cautious outlook towards the economic stability in the near future.

The report highlights that while the overall job market faces challenges, opportunities remain for those in specialized fields, suggesting a silver lining amidst the economic uncertainty.

©Keystone/SDA

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