| Actual | Previous | Consensus | |
|---|---|---|---|
| Not Adjusted | 2.0% | 1.9% | |
| Adjusted | 2.1% | 2.1% | 2.1% |
Highlights
The labour market weakened just marginally in August as seasonally adjusted joblessness rose 102 or 0.1 percent on the month to 94,373. The increase was small enough to leave the unemployment rate steady at July's 2.1 percent, in line with the market consensus and matching its highest level since July 2022. Unadjusted, the number of people out of work increased 2,280 or 2.6 percent to 89,7881, nudging the rate a tick higher to 2.0 percent. This closed the gap with its level a year ago, following a 0.1 percentage point shortfall in July and a 0.5 percentage point spread at the start of the year.
Seasonally adjusted vacancies also declined again, this time by a sizeable 1,846 or 3.9 percent on the month to 45,732. This equated with an unadjusted yearly fall of 30.6 percent following a 27.6 percent drop in July.
Today's update provides further evidence that the labour market is on a loosening trend. Even so, current unemployment rates are still historically very low and show that the market as a whole remains tight. This could yet be enough to trigger another hike in the SNB's policy rate later this month. The August data also put the Swiss ECDI at minus 23 and the ECDI-P at minus 27; both readings showing overall economic activity still falling quite well short of market expectations.
Seasonally adjusted vacancies also declined again, this time by a sizeable 1,846 or 3.9 percent on the month to 45,732. This equated with an unadjusted yearly fall of 30.6 percent following a 27.6 percent drop in July.
Today's update provides further evidence that the labour market is on a loosening trend. Even so, current unemployment rates are still historically very low and show that the market as a whole remains tight. This could yet be enough to trigger another hike in the SNB's policy rate later this month. The August data also put the Swiss ECDI at minus 23 and the ECDI-P at minus 27; both readings showing overall economic activity still falling quite well short of market expectations.
Market Consensus Before Announcement
The adjusted rate is seen unchanged at 2.1 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.
