CH: Employment

Mon Feb 26 02:15:00 CST 2018

Actual Previous Revised
Level change (000) Q/Q 21,000 15,000 17,000
Level change (000) Y/Y 41,000 38,000

Employment rose 21,000 or 0.4 percent on the quarter in the October-December period following a slightly larger revised 17,000 increase in the third quarter. Compared with a year ago, the number of people with jobs was up an unadjusted 41,000 after a 38,000 gain last time. This was the largest annual advance in two years.

The quarterly rise was largely due to a 19,000 addition to the service sector headcount although goods producing industries also saw payrolls increase for a third successive quarter. The outlook for jobs remained positive as annual growth of vacancies climbed from 7.5 percent in the previous period to 16.8 percent. This reflected a broad-based increase in demand for new hires.

The employment data are consistent with an underlying strengthening in Swiss economic activity and bode well for Thursday's fourth quarter GDP accounts.

The quarterly employment barometer is a survey of 18,000 businesses and service sectors encompassing approximately 65,000 establishments. It collects data on job vacancies, recruitment difficulties and the development of employment forecasts. The main focus is on the quarterly and annual changes in overall employment.

The employment data give a comprehensive report on how many people have jobs. These numbers are the best way 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.