Labor market The number of people in employment is growing, but unemployment is on the rise
The Swiss labor market is sending mixed signals: while the number of people in employment is increasing slightly, the unemployment rate is rising significantly.
The Swiss labor market is sending contradictory signals. In the third quarter of 2024, Switzerland recorded a slight increase in the number of people in employment, while the unemployment rate also rose significantly.
According to the Swiss Labor Force Survey (SLFS) published by the Federal Statistical Office (FSO) on Thursday, there were 5.343 million people in employment in the third quarter, an increase of 0.7% compared to the previous year.
The number of men in employment rose by 0.1%, while the number of women increased by 1.3%. Particularly noteworthy is the increase in the number of foreign employees, which at 1.3% was significantly higher than the 0.4% increase recorded by the Swiss.
Expressed in full-time equivalents (FTEs), the number of people in employment rose by 0.8%. Seasonally adjusted, it rose by 0.1% compared to the second quarter of 2024.
Unemployment on the rise
The unemployment rate climbed to 4.7% in the third quarter, compared to 4.3% in the same quarter of the previous year and 4.0% in the previous quarter. According to the definition of the International Labor Organization (ILO), 242,000 people were therefore unemployed.
Seasonally adjusted, the unemployment rate rose by 0.3 percentage points to 4.5% compared to the second quarter of 2024.
This development is remarkable, as unemployment is falling in neighboring countries. Compared to the same quarter of the previous year, the unemployment rate fell both in the EU (from 6.0% to 5.8%) and in the eurozone (from 6.5% to 6.3%).
Long-term unemployment on the rise
The number of long-term unemployed also rose in Switzerland. In the third quarter of 2024, 80,000 people were long-term unemployed, an increase of 8,000 compared to the same quarter of the previous year. The share of long-term unemployed in the total number of unemployed was 33.0%.
The ILO unemployment rate is significantly higher than the unemployment rate according to the Seco definition, which only takes into account people registered as unemployed.
SDA
