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swissstaffing - Verband der Personaldienstleister der Schweiz

Swiss Staffingindex: change of trend in the labor market

Swiss Staffingindex: change of trend in the labor market
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Dübendorf (ots)

The economic slowdown has led to a change of trend in the labor market in the space of just one year. There has been a dramatic 20.8 percent reduction in permanent job placements by staffing service providers, and the temporary staffing sector is also in decline.

The faltering economy is making it hard to find jobs in Switzerland and resulting in lower financial figures for staffing service providers. The strength and speed of the new trend are particularly surprising in the permanent staffing sector, which has recorded a 20.8 percent fall in turnover year-on-year. Working hours in the temporary staffing market have also fallen by 4.9 percent - a significant reduction. This decline in both areas indicates an economic downturn. Companies are hesitant to create permanent positions due to thinner order books and require fewer temporary workers. In the healthcare sector, the demand for staff is continuing to grow.

The days of labor shortages are over. Jana Jutzi, CEO of Careerplus, observes: "Companies are currently being extremely cost conscious. Instead of recruiting new employees, they are merging positions or looking for bridging solutions." However, there is still a shortage of skilled workers with certain professional profiles. The trend has been particularly surprising in IT, where demand has remained high up until now. Now, according to Lightcast, the aggregate number of job advertisements has fallen by 25 percent compared to the same quarter last year. However, staffing service providers' demand for network architects (Q2 2024: 2,124 advertisements, +31 percent) has continued unabated and came second only to the construction profession of joiners (Q2 2024: 3,763 advertisements, +41 percent), which recorded the highest increase in advertisements. Driven by demographic change, the labor market also remains tense in the healthcare sector, with a slight increase in the number of advertisements in this sector. Jutzi confirms the trends: "Companies are continuing to come to us with demanding profiles. In the IT and healthcare sectors in particular, there are certain roles that are difficult to fill. The talents know their worth. Negotiations often break down due to requirements that companies are unable to fulfill."

A paradoxical situation: construction sector faltering despite a booming housing market

Despite house and rental prices rising, the construction sector is faltering. Susanne Kuntner, CEO of the staffing service provider meinjob, comments: "The market conditions in the construction sector are difficult. Our clients can currently complete most of their jobs using their permanent workforce. As a result, the number of leased temporary workers has fallen significantly year-on-year for the first time in years. This is also confirmed by the figures provided by international job market specialist Lightcast: the number of advertisements for traditional professional profiles, such as crane operators (Q2 2024: 239 advertisements, -68 percent), floorers (Q2 2024: 333 advertisements, -50 percent), and even support staff (Q2 2024: 1,180 advertisements, -41 percent), has significantly declined. Dr. Marius Osterfeld, Head of Economics at swissstaffing, believes that there are three reasons for this: "Rising interest rates, the reduction in demand for housing during the COVID crisis, and complex planning permission procedures are preventing rapid changes to the supply on the property market." The current downturn in the construction sector indicates that the situation on the housing market is unlikely to ease in the foreseeable future. Rising rates for new lets and longer searches are to be expected.

A new balance of power: consequences for job seekers and staffing service providers

In the new labor market phase, the balance between employers and employees is shifting - even if the situation is still better than it was before the coronavirus crisis. It is becoming increasingly important for employees to invest in their own employability through continuing professional development. It is also worth them keeping an eye on developments in the labor market and making the most of any given opportunities. If they are not already doing so, employees should respond quickly if they are made redundant and make use of all job-hunting channels. The new labor market situation also has consequences for staffing service providers: it is becoming less important to facilitate long-term, flexible employment relationships. Instead, the focus is turning to helping job seekers with their rapid labor market integration, something that staffing service providers are very familiar with. Even in 2022, 55 percent of temporary workers stated - in a survey conducted for swissstaffing by gfs-zürich - that they work through a staffing service provider because they take on the actual job search for them.

Contact:

Dr. Marius Osterfeld, Head of Economics & Politics
Tel: 044 388 95 70 / 079 930 45 25
marius.osterfeld@swissstaffing.ch

Celeste Bella, Head of Marketing & Communication
Tel: 044 388 95 65 / 079 388 94 22
celeste.bella@swissstaffing.ch

www.swissstaffing.ch

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