Swiss Unemployment – The 2022 Position
3 min read
The subject of “unemployment” has been a hot topic throughout the last couple of years. Public health measures caused many new people to appear on the unemployment register. However, are we coming out the other side of this artificial increase in unemployment?
An Endless Cycle?
Unemployment is clearly felt strongly by not only those unemployed, but it also adversely affects the economy as a whole.
The ripple effect caused by people suffering financial hardship, and all that comes with it, negatively impacts consumer spending (one of the key drivers of growth in an economy) which can lead to economic recession or even economic depression, if left to grow. Lower demand means lower profits for business which can lead to redundancies and, thus, more unemployment. It is a downward spiral that once started can be difficult to stop.
However, unemployment has more effects than just financial woes. People will face challenges with mental and physical health, there could be an increase in crime-rates, and Government spending on benefits could become out of control and also reduce GDP.
Reversing the trend!
It is not all doom and gloom though. A vital part of escaping a downward spiral is business and consumer confidence. If people are confident enough to be willing to invest in developing the right skills an economy needs, then both jobs and so productivity can rise again. It is certainly can be a long-term problem once it arrives, but the challenge for Government to try to keep productivity and economic development sustainable, suitable and strong enough for the local needs of the Country concerned.
Coming out the other side?
In Switzerland, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force.
Unemployment in Switzerland is, happily, on a falling trajectory fell to 2.4% in March, which is down from 2.5% in February and 2.6% in January. In numbers of people, this relates to 109,500 people registered with the regional unemployment office, 8,470 fewer than in February.
From a January 2020 level of around 2.6%, followed by a peak in January 2021 of 3.7%, it would seem that unemployment is now on a steady reduction and on its way back to pre-2020 levels.
Switzerland's 2022 figures compared to toehr leading Countries
Comparing these latest Swiss figures with those of other Countries, we see unemployment in the UK at 3.8%, France at 7.4%, Germany at 5.4%, the U.S at 3.6%, and Spain at a whopping 13.33%. So, it is clear that Switzerland is a front-runner in having some of the lowest unemployment figures in the World, which is possibly a reflection of its strength in markets and very modern approach to sustainability, positively impacting the economy, as well the levels of employment.
Getting your finances back on track
Financial planners have long held the responsibility to support their Clients as they face threats to their financial well-being, especially through and after periods of unemployment. At Patterson-Mills, we realise that with employment on the rise once more, we have an important role to play with getting people’s financial situation in order.
If you have recently become employed or had to change roles due to these turbulent times, we recommend taking advice to make sure your financial future remains on track.
Get in touch today. You have nothing to lose and potentially lots to gain!
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