Employment growth stable at high level in Q1 2023

May 2023

In Q1 2023, total employment (number of jobs) increased by 2.2% compared to the same quarter of the previous year (seasonally adjusted +0.6% compared to the previous quarter). Calculated in full-time equivalents, this was an increase in employees of 2.4%. Companies reported a total of 7100 (+5.9%) more vacancies than a year earlier and the employment outlook indicator is still positive. This emerges from the new figures of the Federal Statistical Office (FSO).

Companies in Switzerland (excluding agriculture) reported a total of 5.389 million employees in the 1st quarter of 2023. This corresponds to an increase of 2.2% (+115 700 jobs) within a year. Employment in the secondary sector (industry and construction) rose by 2.1% (+22 700 jobs) and in the tertiary sector (services) by 2.2% (+93 000 jobs).

In terms of full-time equivalents (FTEs), the volume of employment reached 4.206 million jobs (+2.4% compared to the same quarter of the previous year). This is 98,100 full-time equivalents more than a year ago. Both the industrial sector (+20 800 FTEs; +2.1%) and the service sector (+77 300 FTEs; +2.5%) benefited from this increase.

Seasonally adjusted and compared to the previous quarter, the number of employees in companies increased by 0.6% (+32 100 jobs). Thus, within one quarter, the employment level increased both in industry and construction (+7600 jobs; +0.7%) and in services (+23 800 jobs; +0.6%).

Highest increase in employment again in the hotel and restaurant industry
In a year-on-year comparison, all sectors of the economy showed increases in the number of employees. The strongest percentage growth, as in all quarters after the Corona crisis, was recorded in “Hotels and restaurants” (+16 500; +6.8%). The section “Transport and communication” also developed very positively (+18 500; +4.2%). Further robust values were achieved in “Education” (+11 200; +2.8%) and “Health and social work” (+21 500; +2.7%).

Significant increase in employment in the greater Zurich region
In Q1 2023, employment increased in all of Switzerland’s greater regions, ranging from 1.3% (+3200 jobs) in Ticino to 3.2% (+34 100 jobs) in Zurich. In the secondary sector, the major region of Northwestern Switzerland (+3.6%) and in the tertiary sector the major regions of Zurich and Central Switzerland (+3.4% each) recorded the highest percentage increases.

Once again more vac ancies
Companies reported a total of 126,600 vacancies in Q1 2023 (+5.9% year-on-year). Compared to a year ago, this is an increase of 7100 jobs. Broken down by sector, the number of vacancies in both the secondary and tertiary sectors increased by 14.8% and 3.2% respectively. Measured in terms of all vacancies (filled plus vacant), the rate corresponded to 2.3% in the total, 2.8% in the secondary sector and 2.2% in the tertiary sector.

Employment outlook still good
The share of companies planning to increase their workforce in the short term was 15.2% (15.7% in the same quarter last year) of total employment; the share of those intending to reduce was 3.6% (2.7% in the same quarter last year). The remainder of the 18,000 companies surveyed intend to maintain staffing levels (67.8% and 65.9% respectively in the same quarter of the previous year) or have not expressed an opinion (13.3% and 15.6% respectively in the same quarter of the previous year).

The employment outlook indicator, which is calculated from this information, fell slightly compared to the previous year (1.07; -1%). This somewhat less optimistic assessment is evident in all major regions of Switzerland.

Depending on the sector, the search for skilled workers remains difficult
Difficulties in recruiting skilled workers have increased overall compared to the same quarter last year (41%; +2.3 percentage points). Companies in “mechanical engineering” were particularly affected (75.8%; +8.4 percentage points). In contrast, recruitment in the “hotel and restaurant industry” (39.6%; -5.8 percentage points) eased somewhat.

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