| Actual | Previous | Revised | |
|---|---|---|---|
| Quarter over Quarter | 7,000 | 33,000 | 29,000 |
| Year over Year | 69,000 | 95,000 |
Highlights
The labour market continued to gain ground last quarter but at a much slower pace than in the previous period. Seasonally adjusted employment rose just 7,000 or 0.1 percent on the quarter following a slightly smaller revised 29,000 increase at the start of the year. Unadjusted, the annual gain was 69,000 or 1.3 percent after a 95,000 rise last time.
In fact, the latest quarterly advance was wholly attributable to the goods producing sector where headcount was up 0.3 percent after a 0.2 percent gain last time. By contrast, services contracted 0.1 percent following a solid 0.6 percent advance. Moreover, the ongoing decline in vacancies accelerated with a hefty 8.4 percent drop after a 0.9 percent fall in the first quarter. Unadjusted, job openings are now down some 16.2 percent on the year.
In sum, the second quarter labour market remained tight but forward-looking indicators suggest that it is loosening, in line with the more recent monthly data. Today's report should not stand in the way of another SNB policy rate cut in September.
In fact, the latest quarterly advance was wholly attributable to the goods producing sector where headcount was up 0.3 percent after a 0.2 percent gain last time. By contrast, services contracted 0.1 percent following a solid 0.6 percent advance. Moreover, the ongoing decline in vacancies accelerated with a hefty 8.4 percent drop after a 0.9 percent fall in the first quarter. Unadjusted, job openings are now down some 16.2 percent on the year.
In sum, the second quarter labour market remained tight but forward-looking indicators suggest that it is loosening, in line with the more recent monthly data. Today's report should not stand in the way of another SNB policy rate cut in September.
Definition
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.
Description
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.
