Global tariff dispute weighs on Swiss labour market

Global customs dispute weighs on Swiss labour market Keystone-SDA

According to a survey, the outlook for the Swiss labour market has cooled considerably. Employers are cutting back on staff due to economic concerns and are focusing more on temporary employees.

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Swiss employers surveyed by the recruitment agency Manpower expect a significant decline in willingness to hire in the fourth quarter of 2025, according to a press release issued by the recruitment agency on Wednesday. The net employment outlook is 26%, which is 7 percentage points lower than in the same period last year.

The survey was conducted from July 1-31, 2025 – and thus before the introduction of US import tariffs of 39% on Swiss goods. However, expectations were already suffering from the customs disputes at the time. The sharp decline “underscores the impact of global trade volatility, rising costs and demographic challenges on workforce planning”, according to Manpower.

Temporary workers and automation

According to the latest employment forecast, companies in Switzerland are increasingly turning to temporary workers and consultants to maintain their competitiveness. This is particularly true for specialised functions and in operational support.

At the same time, more than half (52%) of employers in Switzerland are planning to increase the automation of tasks and processes over the next twelve months. They hope this will increase efficiency and resilience.

“Swiss employers are becoming increasingly cautious as macroeconomic pressures and structural changes in the workforce affect their recruitment strategies,” said Eric Jeannerod, country manager of Manpower Switzerland, in the press release. Although there is still a need for highly qualified specialists, particularly in the areas of technology and specialised functions, the year-on-year decline in almost all sectors and regions points to a general economic slowdown.

Western Switzerland particularly pessimistic

Almost all major sectors are reporting a significant decline in hiring intentions compared to the previous year – with one exception: energy and utilities (+56 percentage points). Manpower attributes this to political support, corporate strategies and the ongoing energy transition.

Hiring sentiment is also weakening across almost all regions in Switzerland. The sharpest decline was recorded in French-speaking Switzerland, where the watch industry and high-quality services continue to play a central role in the economy.

In contrast, Ticino is showing the first signs of recovery.

Translated from German by DeepL/jdp

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