swissstaffing - Verband der Personaldienstleister der Schweiz
Swiss Staffingindex: pressure mounts on the labor market
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The economic slowdown is impacting the labor market. The permanent staffing sector via staffing service providers fell by 25.9 percent in the third quarter compared with the previous year. The temporary staffing sector remains in significant decline.
The lingering economic slowdown has put the Swiss labor market under clear pressure. The permanent staffing sector in particular is seeing a marked decline compared with the previous year: the decrease in turnover for the third quarter was 25.9 percent, an even greater drop than the 20.8 percent in the previous quarter. The temporary staffing sector also experienced a further 5.3 percent drop in working hours. These developments indicate increasing uncertainty on the part of companies, which are being more reticent about creating jobs given the unsteady future outlook. Structural uncertainty is reinforcing the economic downturn and putting the entire sector under strain.
The latest data from SECO confirms the tense picture painted of the labor market by the Swiss Staffingindex. In September 2024, the unemployment rate rose to 2.5 percent and the number of job seekers increased by 20.1 percent. The employment outlook survey suggests that experts from regional unemployment offices (RAVs) are also pessimistic about this trend - they are expecting to see unemployment rise further and employment to drop in the fourth quarter. This particularly affects the industrial and service sector, as some vital foreign sales markets such as Germany and China are faltering. Companies that are already export-oriented have significantly fewer temporary staffing needs - especially as the strength of the Swiss franc is having an adverse impact on all international business. This is paired with excess production capacity and a drop in online trade. In areas that still have a skills shortage despite the economic slowdown, companies' needs often do not match the candidates available. Even when these do line up, many companies are hiring temporary staff on a permanent basis, which correspondingly reduces demand in the temporary and permanent staffing sector.
Study shows that temporary work serves as a stepping stone for changing careers
Temporary work gives companies and job seekers the flexibility they need to respond quickly to economic change and serves as a stepping stone to the labor market. According to a new study conducted by AMOSA (labor market monitoring for eastern Switzerland), 74 percent of temporary workers changed employer at least once in the last five years, 41 percent have taken a new career direction, and 21 percent experienced a period of unemployment. These figures illustrate the high level of mobility and adaptability that temporary work offers job seekers on the labor market. Employees can respond flexibly to new circumstances and successfully shape career transitions. In an economic climate marked by uncertainty, temporary work is a tool that helps companies efficiently bridge staff shortages and offers workers a valuable opportunity to establish a foothold in the world of work.
Cautious outlook for 2025
The labor market is likely to remain strained for the foreseeable future. Clearly, the 1.2-percent growth predicted by SECO for 2024 will not be sufficient to provide employment stimuli for the labor market. The 1.7-percent rise forecast for the following year should brighten the economic situation, but this small increase is not expected to prompt a major fall in unemployment or rise in employment. Staffing service providers will thus continue to become ever more important as partners aiding with professional reorientation and job hunting. The same applies to the temptraining equal-opportunities further training fund, which has enabled temporary workers to prepare themselves for future challenges in the working world by financing continuing education services with sums of up to 5000 Swiss francs.
For more information, please 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