CH: Unemployment

Tue Oct 10 00:45:00 CDT 2017

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

The Swiss labour market was a little stronger than expected last month. Unadjusted, the number of people out of work fell 2,409 to 133,160 and in so doing left the jobless rate unchanged at 3.0 percent. However, seasonally adjusted, a 1,594 decline to 140,535 was large enough to shave a tick off the unemployment rate to 3.1 percent, its lowest mark since April 2015.

There was also good news in the vacancies update which showed a further 0.5 percent seasonally adjusted monthly increase for an unadjusted yearly gain of 12.9 percent.

The September jobless report is promising but leaves, at best, only a very slowly improving picture that may not be enough to provide any real boost to still sluggish household consumption growth.

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.