CH: Unemployment

Fri Jul 07 00:45:00 CDT 2017

Consensus Actual Previous
SECO (NSA) 3.0% 3.0% 3.1%
SNB (SA) 3.2% 3.2% 3.2%

The number of people out of work fell 6,175 or 4.4 percent to 133,603 in June. The decline was steep enough to reduce the unemployment rate from 3.2 percent in May to 3.0 percent, in line with market expectations. More usefully, the seasonally adjusted data also showed a drop of 1,010, although this was too small move the adjusted rate from its 3.2 percent mid-quarter post.

However, vacancies disappointed and the adjusted total was down a further 68 or 0.6 percent on the month after a 1.0 percent decline in May. Unadjusted annual growth was 10.2 percent.

The June labour market data are mixed. The decrease in unemployment is consistent with a better month for economic growth but back-to-back declines in vacancies could mean that companies have become rather more cautious about the outlook.

The unemployment rate measures the number of unemployed as a percentage of the labour force. Both seasonally adjusted and unadjusted monthly data are provided.

Like the employment data, unemployment data help to gauge the current state as well as the future direction of the economy. Employment data are categorized by sectors. This sector data can go a long way in helping investors determine in which economic sectors they intend to invest.

By tracking the jobs data, investors can sense the degree of tightness in the job market. If employment is tight it is a good bet that interest rates will rise and bond and stock prices will fall. In contrast, when job growth is slow or negative, then interest rates are likely to decline - boosting up bond and stock prices in the process.