The labour market deteriorated further in May as seasonally adjusted joblessness rose 2,201 or 2.5 percent on the month to 91,623. The increase was large enough to lift the unemployment rate by a tick to 2.0 percent, above the market consensus and its first increase since May 2020. Unadjusted, the number of people out of work dropped 2,458 or 2.7 percent to 88,076, trimming the rate from 2.0 percent to 1.9 percent. However, this was only 0.2 percentage points short of its level a year ago, down from the 0.3 percentage point gap seen in April and a 0.5 percentage point gap at the start of the year.

Moreover, seasonally adjusted vacancies fell again, this time by 1,650 or 3.3 percent on the month to 48,938. This equated with an unadjusted yearly decline of 27.1 percent after a 24.9 percent slide in April.

Today's update provides further evidence that the labour market while still historically tight, has turned the corner and is losing momentum. It also puts the Swiss ECDI at minus 7 and the ECDI-P at minus 21. Both readings show overall economic activity continuing to fall short of market expectations.

The seasonally adjusted rate is seen flat at 1.9 percent.

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.