| Actual | Previous | Consensus | |
|---|---|---|---|
| Not Adjusted | 1.9% | 1.9% | |
| Adjusted | 2.1% | 2.0% | 2.0% |
Highlights
The labour market weakened further in July as seasonally adjusted joblessness rose 1,528 or 1.6 percent on the month to 94,648. The increase was large enough to lift the unemployment rate from 2.0 percent to 2.1 percent, a tick above the market consensus and matching its highest level since July 2022. Unadjusted, the number of people out of work increased 2,502 or 2.9 percent to 87,601, leaving the rate steady at 1.9 percent. This was only 0.1 percentage point short of its level a year ago, in line with the gap seen in June but well short of the 0.5 percentage point spread at the start of the year.
Moreover, seasonally adjusted vacancies fell again, this time by 530 or 1.1 percent on the month to 47,592. This equated with an unadjusted yearly decline of 27.6 percent, a minor improvement on June's 27.9 percent drop.
Today's update still leaves a historically tight labour market but a trend loosening is becoming increasingly apparent. More of the same and the SNB will think twice about raising its policy rate again next month. The July data put the Swiss ECDI at minus 16 and the ECDI-P at minus 9, both readings continuing to show overall economic activity falling short of market expectations.
Moreover, seasonally adjusted vacancies fell again, this time by 530 or 1.1 percent on the month to 47,592. This equated with an unadjusted yearly decline of 27.6 percent, a minor improvement on June's 27.9 percent drop.
Today's update still leaves a historically tight labour market but a trend loosening is becoming increasingly apparent. More of the same and the SNB will think twice about raising its policy rate again next month. The July data put the Swiss ECDI at minus 16 and the ECDI-P at minus 9, both readings continuing to show overall economic activity falling short of market expectations.
Market Consensus Before Announcement
The 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.
