Unemployment takes downward turn

The number of people unemployed in Switzerland has declined after three months of increase, confirming the recovery of the Swiss economy. Jean-Luc Nordmann (pictured), from the State Secretariat for Economic Affairs, announced the figures.

The number of people unemployed in Switzerland has declined after three months of increase, confirming the recovery of the Swiss economy.

Figures for February show there were 88,702 people without a job – 3,929 fewer than the previous month. The unemployment rate fell by 0.2 per cent to 2.4 per cent of the working population.

The head of the labour section of the State Secretariat for Economic Affairs, Jean-Luc Nordmann, said the contraction was not only the result of seasonal factors affecting the labour market.

He added that it had to be seen against a background of other indices, for example the increase in GDP, which rose to 3.7 per cent in the fourth quarter of last year compared to the previous three months.

For the year as a whole, Nordmann believes that Switzerland will an average 80,000 jobless (1999 – 96,000).

The supply side has also improved, with around 2,000 more jobs coming on to the market in February. The number of job vacancies in Switzerland reached 14,394.

“We were expecting an unemployment rate of 2.5 per cent and 2.4 per cent came out,” said Andreas Houfert, an economist at UBS Warburg, “so the Swiss Labour market is really very sound at the moment.”

Analysts are looking for unemployment to fall below the 80,000 level over the course of the year. However, warnings are coming from some about shortages of trained staff in the information technology sector, which could lead to inflationary pressures building up through increased salaries.

“I think it’s mostly the high-tech and services sectors creating the new jobs,” Houfert said.

From staff and wire reports