| Actual | Previous | Consensus | |
|---|---|---|---|
| Not Adjusted | 2.1% | 2.0% | |
| Adjusted | 1.9% | 2.0% | 2.0% |
Highlights
The labour market was again surprisingly robust at year-end. Seasonally adjusted joblessness fell fully 3,737 or 4.0 percent on the month to 88,755, reducing the unemployment rate by a tick to 1.9 percent. This was just below the market consensus and 0.4 percentage points short of its reading just before the arrival of Covid. Unadjusted, the number of people out of work rose 5,614 or 6.1 percent to 96,941, raising the rate by 0.1 percentage point to 2.1 percent. This was 0.5 percentage points short of its level a year ago, in line with the gap seen in November but well down on the 1.0 percentage point shortfall posted as recently as May.
Still, looking ahead job prospects continued to deteriorate with seasonally adjusted vacancies falling a further 1,010 or 1.6 percent on the month to 64,802. This equated with an unadjusted yearly gain of only 2.0 percent, down from 11.7 percent last time.
Accordingly, today's data are mixed but clearly show a still very tight labour market last month. This will not be wasted on the SNB which will probably increase its policy rate again in March. The December data push both the Swiss ECDI (11) and ECDI-P (25) further into positive surprise territory indicating that economic activity in general is outperforming market expectations, albeit by only a relatively modest extent.
Still, looking ahead job prospects continued to deteriorate with seasonally adjusted vacancies falling a further 1,010 or 1.6 percent on the month to 64,802. This equated with an unadjusted yearly gain of only 2.0 percent, down from 11.7 percent last time.
Accordingly, today's data are mixed but clearly show a still very tight labour market last month. This will not be wasted on the SNB which will probably increase its policy rate again in March. The December data push both the Swiss ECDI (11) and ECDI-P (25) further into positive surprise territory indicating that economic activity in general is outperforming market expectations, albeit by only a relatively modest extent.
Market Consensus Before Announcement
The seasonally adjusted rate is seen unchanged at 2.0 percent.
Definition
The unemployment rate measures the number of unemployed as a percentage of the labour force. Both seasonally adjusted and unadjusted monthly data are provided.
Description
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.
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.
