CH: Unemployment

Thu Nov 09 00:45:00 CST 2017

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

As expected, there were no significant changes in labour market conditions in October. The number of people out of work increased 1,631 or 1.2 percent to 134,800 but this still left the jobless rate unchanged at 3.0 percent. Seasonally adjusted, unemployment fell 1,449 or 1.0 percent to 139,487 but, again, the rate held steady at 3.1 percent.

However, there was further good news on vacancies which increased 1.0 percent versus September to sustain annual growth at a healthy 12.9 percent rate. This bodes well for jobs further out.

Today's data are in line with a moderate pace of economic recovery. However, as the October SECO consumer survey indicated, the upturn remains too muted to provide households with the confidence needed to bolster their purchasing plans. In turn, this is helping to keep a lid on inflation.

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.