A slowdown in the industrial sector
In detail, in 2024, the Swiss labor market was marked by a weakening of economic developments, with production in the industrial sector having slowed due to a sharp decline in demand. On the other hand, the labor shortage has become less of an obstacle to production, as the need for qualified personnel has diminished.
It should therefore be noted that over the year, the unemployment rate increased slightly, going from a very low level of 2.2% at the start of the year to 2.6%, a rate adjusted for seasonal variations, in December.
In December 2024 precisely, the number of unemployed increased by 9,179 (+7.6%) compared to the previous month to reach 130,293. Compared to the same month of the previous year, unemployment increased by 21.9% . In the last month of the year, the unemployment rate therefore increased by 0.2 percentage points compared to the previous month, to reach 2.8%.
Increases also among young people and those over 50
Between November and December, the number of young unemployed people (aged 15 to 24) increased by 346 people (+2.9%) to reach 12,163. Compared to the same month of the previous year, this corresponds to an increase of 2,261 people (+22.8%).
Still in December but with a focus on unemployed people aged 50 to 64, SECO observed that their number was 2,362 or 7% higher than the previous month (35,866). And in comparison with the same month of the previous year, it increased by 5742 people (+19.1%). Finally, according to data from the end of December 2024, the number of people who exhausted their rights to unemployment benefits during the month of October 2024 amounted to 2,609. This represents 614 more people (+30.8%) than in September 2024.
Balanced outlook for 2025
According to current estimates, the 2024 financial year will result in total revenues of 8.86 billion francs for the unemployment insurance compensation fund compared to 9.14 billion in 2023, and total expenditure of 7.31 billion francs (6.38 billion in 2023). Figures which correspond to a revenue surplus of 1.55 billion francs compared to 2.76 billion in 2023, notes SECO.
In its December forecasts, the Federal Expert Group for Economic Forecasts expects a slower unemployment dynamic in 2025, which should gradually slow down. Thus, as an annual average, it should stand at 2.7%, a level slightly below its long-term average or its so-called “cyclically neutral” level. The current situation and prospects for the labor market can therefore be described as good and balanced.
