The labour market continued to gain ground at the end of 2023. Seasonally adjusted employment was up a further 23,000 or 0.4 percent on the quarter following a marginally larger revised 8,000 increase in the previous period. Unadjusted, the annual gain was a solid 90,000 or 1.7 percent after a 103,000 rise last time.

The latest quarterly increase was attributable to services where the workforce climbed 0.5 percent, up from a 0.3 percent advance in the third quarter. Growth here was fairly consistent across the year. However, the goods producing sector was essentially flat after a steadily declining run of increases since the start of 2023. In fact, looking ahead, the overall demand for labour appears to be cooling with vacancies down 1.1 percent on the quarter, their third straight decline. Indeed, the fourth quarter level was 9 percent lower than at the end of 2022.

Even so, the labour market clearly remains tight and that will be a key factor in the SNB's policy decision 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.