KOF Employment Indicator: Stronger Increase in Staffing Levels at Service Companies

The KOF Employment Indicator now stands at 3.9 points. In the final quarter of 2019 it was languishing at 2.1 points (revised from 2.3 points). This means that the indicator is diverging further from its long-term average of close to zero. This increase after two negative quarters is good news for jobseekers in Switzerland, as the indicator is ahead of job growth there.

The Employment Indicator is calculated on the basis of KOF's quarterly business surveys. Companies are asked, among other things, to assess their current staffing levels and to say whether they intend to adjust them over the following three months. On balance, a majority of the companies surveyed in January felt that their workforce was too small. At the same time, these companies plan, on balance, to increase their headcount in the next three months. The Employment Indicator represents the average of these employment assessments and expectations.

Outlook for the manufacturing sector less negative; services still at a high

On balance, the companies surveyed in the manufacturing, hospitality and wholesale sectors are still looking to reduce their workforces significantly. Compared with the previous quarter, however, employment prospects have improved somewhat. The positive Employment Indicator is supported by the continued encouraging employment outlook for construction and, especially, for the other service sectors. In fact, the indicator for the service industries is currently at a high, having previously peaked in 2011.

KOF Employment Indicator (continuous actualisation)