Jobless rate drops despite franc decision
The Swiss unemployment rate dropped slightly in March, suggesting that as yet there has been little impact on the economy from the shock decision by the Swiss National Bank to scrap the cap on the value of the Swiss franc against the euro.
The cap move, announced on January 15, caused the franc to surge against the euro and dollar and had repercussions for the both the Swiss and global financial system. For exporters and the tourism industry in Switzerland, the move led in the aftermath to a near 18% rise in the franc against the euro.
On Friday, the State Secretariat for Economic Affairs (SECO) saidExternal link that the Swiss jobless rate had fallen by 0.1% in March compared with February to 3.4%. Oliver Schärli, head of the labour market section at SECO, said that the often cited “appreciation shock” after the fall of the cap had not affected unemployment in March and that the Swiss job market was robust.
The fact that the number of people out of a job fell in this month by 4,813 to 145,108 was down to the normal seasonal change: for example more jobs became available in the building industry.
Less positive, said Schärli, was the comparison with March 2014. This year’s rate for March was 0.1% higher than last year’s. Higher jobless rates could be seen especially in the export industry and also in the building sector.
Patience needed
A signal that the jobless situation could worsen in Switzerland is to be found in the number of vacant positions: although there was a small change on last month, there was a 4,500 difference on March 2014.
Short-time working also showed a change. Compared with December 2014, 26% more Swiss firms had started using more short-time working, the figures showed. Nevertheless, experts say figures were higher during the economic crisis in 2009.
Schärli concluded that patience would be needed to see the far-reaching effects of the cap decision, as job figures typically needed a few months to catch up with events. SECO predicts that mid-2015 will give a clearer picture. But it is sticking to its calculations of a slightly higher jobless rate this and next year.
The Swiss rate nevertheless remains low compared with its neighbours: 10.6% for France (February); Germany 4.8% and Italy 12.7%.
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