Swiss unemployment will decline, government says

The headline Swiss unemployment rate declined to 3.6% for February from 3.7% the previous month. The rate was unchanged from the 3.6% recorded in February 2016. The seasonally-adjusted rate was unchanged at 3.3% for the month and there has been no change in the adjusted rate for nine months. Youth unemployment, which applies to the 15 to 24 age group, declined 6.7% on the year which will help boost confidence in the labour market.

The stock of vacancies declined significantly on the month, although there was still a small 0.3% increase on the year and there was a significant increase in new reported vacancies on the month which is also an encouraging sign.

The latest data for December recorded a sharp decline in short-time workers for the month, although this will have been related in part to seasonal factors. The Swiss country's economy ministry said it expected seasonally adjusted unemployment to decline to 3.2% this year, the long-term average for Switzerland.

"We don't see an abrupt recovery but a gradual, steady reduction during the year," Boris Zuercher, director of the labour directorate, said in a call with reporters.

The improvement in 2017 had been driven by more hiring in the building industry, helped by a mild winter, as well as more temporary work, Zuercher said. "That is definitely good news," said Zuercher. "We are seeing a stabilisation there. I wouldn't say it's a turning point yet, but the figures give hope for the future."