The labour market remained firm in the third quarter with seasonally adjusted employment rising a further 7,000 or 0.1 percent to 5.448 million. However, following gains of 31,000 and 28,000 in the first and second quarters respectively, the latest, relatively small, advance still points to some cooling. Unadjusted, the annual gain was 103,000 or 1.9 percent, down from 116,000 or 2.2 percent in the second quarter.

The latest quarterly increase reflected minor gains in both the goods producing and service sectors. The former added just 3,000 jobs and the latter 14,000. However, following a 2.3 percent decrease in the April-June period, vacancies fell a hefty 5.4 percent to 114,900 percent and now show an 8.3 percent drop on the year.

Consequently, while the labour market remains tight enough to be of concern to the SNB, underlying trends suggest that potential inflationary pressures are beginning to ease and should equate with no change in the central bank's policy rate next month.

The quarterly employment barometer is a survey of 18,000 businesses and service sectors encompassing approximately 65,000 establishments. It collects data on job vacancies, recruitment difficulties and the development of employment forecasts. The main focus is on the quarterly and annual changes in overall employment.

The employment data give a comprehensive report on how many people have jobs. These numbers are the best way 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.