Swiss companies: Employment trends in the second quarter of 2024

According to the latest ManpowerGroup employment outlook survey, optimism in Switzerland remains intact: The seasonally adjusted net employment outlook of 29% - although down 2 percentage points on the previous quarter and 4 percentage points on the previous year - indicates a continued demand for talent, albeit to a lesser extent.

"Despite the market downturn and a slight negative trend revealed by the ManpowerGroup survey, hiring intentions remain stable. The ongoing skills shortage, demographic change and transformative trends such as AI and environmental concerns continue to drive demand for new talent and boost hiring intentions," says Eric Jeannerod, Country Manager ManpowerGroup Switzerland.

Switzerland is an exception

Globally, employers are bracing for potential volatility in 2024 as geopolitical tensions cause concern despite the predicted economic recovery and easing inflation. The reluctance to hire can be seen across all regions, with 39 out of 41 countries reporting a decline in employment prospects by an average of -6 percentage points compared to the previous quarter and -5 percentage points compared to the previous year.

Switzerland performs well in a European comparison and is in second place in the Europe, Middle East and Africa (EMEA) economic area with its hiring intentions, which are 14 points above the regional average. The Netherlands took first place with a net employment outlook of 32%. In Switzerland's neighboring countries, hiring intentions also remain positive, albeit at a much lower level compared to previous quarters: In France, 18% of employers are planning to hire, in Austria and Germany the figure is 17% and in Italy the net employment outlook is 9%.

Ticino is the big loser

Positive employment prospects are reported in six out of seven Swiss regions for the second quarter of 2024, with values ranging from 21% to 50%. Although the ongoing staff shortage is keeping the outlook high, Swiss employers are hiring slightly more cautiously than before. The employment landscape in Switzerland faces challenges in the coming quarter, mainly influenced by the economic difficulties of the past year and lower global demand.

This situation is reflected in Ticino, a region with a significant manufacturing sector, where the drop in demand has led to a decline in employment opportunities. Ticino reports a negative outlook of -14% (a decline of 40 percentage points since the last quarter and 33 percentage points since the same quarter last year).

Compared to the first quarter of 2024, the net employment outlook has fallen in two other regions (Espace Mittelland -6% and Zurich -4%). Compared to the previous year, however, the net employment outlook has risen in five regions (Lake Geneva region +20 percentage points, Northwestern Switzerland +19 percentage points Central Switzerland +14 percentage points Zurich +10 percentage points and Eastern Switzerland +1 percentage point

Marked losses in certain sectors

A look at the various sectors shows that new hires are planned in 8 of the 9 economic sectors surveyed. The highest net hiring intentions are reported by companies in the following sectors: Healthcare and Life Sciences (44%), Finance and Real Estate (43%), Transportation, Logistics and Automotive (42%), Consumer Goods and Services (41%). The "Communication Services" sector reports a negative employment forecast of -8%, a decline of 54 percentage points since the last quarter and 74 percentage points since the same quarter last year. 

With a value of 21%, companies in the IT sector recorded the lowest employment outlook since the beginning of 2022, a sharp decline of 41 percentage points compared to the first quarter of 2024; year-on-year, the employment outlook fell by 15 percentage points.

In terms of company size, medium and large companies are planning to hire, with the exception of companies with fewer than 10 employees (which report a negative NEO of -16%). Companies with 50-249 employees report the highest employment intentions (45 %) for the second quarter of 2024, followed by companies with 250-999 employees (38 %).

Source: www.manpowergroup.com