CH: Unemployment

Fri Feb 09 00:45:00 CST 2018

Consensus Actual Previous
SECO (NSA) 3.4% 3.3% 3.3%
SNB (SA) 3.0% 3.0% 3.0%

The labour market was a little firmer than expected in January. Unadjusted joblessness rose a seasonally small 2,507 or 1.7 percent to 149,161 to leave the unemployment rate unchanged at 3.3 percent. However, the rate was 0.4 percentage points down on the year and the lowest January reading 2012. Seasonally adjusted, the number of people out of work declined 2,133 or 1.6 percent versus December although this was also too small to move the rate from December's 3.0 percent mark.

Meantime, the outlook jobs continued to improve with seasonally adjusted vacancies rising a further 1.2 percent on the month to stand 11.2 percent above their level a year ago.

The pick-up in economic momentum is feeding through into the jobs market and, with household confidence also on the up, should help to underpin stronger consumer spending over coming months.

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.