CH: Unemployment

Thu Dec 07 00:45:00 CST 2017

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

The labour market was a little firmer than expected in November. Unadjusted, joblessness rose 2,517 to 137,317, nudging the unemployment rate 0.1 percentage points higher to 3.1 percent. However, seasonally adjusted the number of people out of work declined some 2,178 or 1.6 percent to 136,603. This was a large enough fall to shade a tick off the adjusted jobless rate which now stands at 3.0 percent, equalling its lowest level in more than five years.

There was also good news on vacancies which climbed a further 0.6 percent versus October to stand 10.9 percent higher on the year.

The surprising dip in the adjusted unemployment rate is consistent with a number of other indicators pointing to a pick-up in economic momentum in recent months. However, with inflation still low and the CHF on the strong side of where the SNB would like to see it, monetary policy is set to remain very accommodative for a long while yet.

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.