Executive Summary

In the 4th quarter of 2025, Swiss employment stagnated with only 0.1% growth, while the unemployment rate rose significantly from 4.4% to 5.0%. This marks a deterioration in the labour market situation, particularly affecting older workers and persons without post-compulsory education. Simultaneously, Switzerland recorded a decline in domestic employment (–0.8%), while foreign skilled workers with longer-term permits increased (+4.0%).

Persons

Topics

  • Employment and labour market
  • Unemployment and ILO statistics
  • Migration and workforce
  • Youth unemployment
  • Long-term unemployment

Clarus Lead

Swiss employment is practically stagnating: year-on-year (Q4 2024 to Q4 2025), it grew by only 0.1% to 5.392 million persons. In parallel, unemployment deteriorated significantly – the rate climbed by 0.6 percentage points to 5.0%, with 31,000 additional unemployed persons. For decision-makers in business and politics, this signals weakening economic growth and mounting pressure for action on labour market integration measures. Particularly critical: Youth unemployment in Switzerland rose from 8.3% to 8.9%, while it fell across the EU.

Detailed Summary

Labour Market Stagnation with Divergent Trends

Swiss employment shows signs of stagnation. In absolute figures, 5.392 million persons were employed – a minimal increase compared to the previous year. Seasonally adjusted, the figure remained unchanged. In full-time equivalents (FTE), growth was also only 0.1%, suggesting a shift towards part-time work. The share of part-time employment was 38.6% (1.898 million persons), with 248,000 underemployed persons who wish to work more.

Divergence between Nationals and Foreigners

A central finding: while the number of Swiss employed persons fell by 0.8% (3.494 million), that of foreign employed persons rose by 1.8% (1.898 million). Within this group, different dynamics emerged: persons with residence permits (Permit B/L, ≥12 months) increased by 4.0%, while short-term residents (Permit L, <12 months) fell by 4.7%. This points to a structural shift towards qualified, longer-term employed migrants.

Unemployment Rises Disproportionately

The unemployment rate (ILO definition) climbed to 5.0% – an increase of 0.6 percentage points. In absolute terms, 256,000 persons were unemployed, 31,000 more than in the previous year. Particularly affected: older workers (50–64 years) with an increase from 3.3% to 4.1%, and persons without post-compulsory education (7.8% to 8.0%). For persons with foreign nationality, the rate was 8.2%, and for third-country nationals even 11.8%. Long-term unemployment (≥1 year) rose to 88,000 persons (+11,000), their share of total unemployment at 34.5%.

Key Findings

  • Labour Market Stagnation: Employment grows by only 0.1%, stagnates completely when seasonally adjusted
  • Unemployment Rises: Rate climbs from 4.4% to 5.0%, absolute increase of +31,000 unemployed
  • Domestic Decline: Swiss employment falls by 0.8%, while qualified foreigners increase (+1.8%)
  • Youth Unemployment Grows: Increase from 8.3% to 8.9% (declining across the EU)
  • Vulnerable Groups Burdened: Older workers (50+), low-skilled and foreigners disproportionately affected
  • Long-term Unemployment: +11,000 persons, share stable at 34.5%
  • Part-time Trend: 38.6% of all employed in part-time work, 248,000 underemployed

Critical Questions

  1. Data Quality (a): SAKE data is based on self-reporting – how robust are the distinctions between "short-term available" and actually available for underemployed persons, particularly for the 248,000 group?

  2. Causality (c): Is the decline in Swiss employment (–0.8%) cyclical or structural (ageing, skills shortage in specific sectors)? Which sectors are affected?

  3. Substitution Effect (c): Are foreign skilled workers with longer-term permits (+4.0%) deliberately displacing Swiss workers from specific qualification segments, or do they complement them?

  4. Youth Unemployment Anomaly (c): Why is youth unemployment rising in Switzerland (8.3%→8.9%) while declining across the EU? Is this a cyclical or structural feature?

  5. Long-term Unemployment Dynamics (b): Which reintegration programmes are working for the 88,000 long-term unemployed? Have chances of returning to employment increased or decreased?

  6. Education Effect (c): Persons without post-compulsory education show a rate of 8.0% – is this a labour market mismatch or lack of entry-level jobs?

  7. Third-Country Disparity (a): The rate of 11.8% for third-country nationals is twice as high as for Swiss (3.6%) – are these persons correctly captured in the statistics, or are there recording gaps?

  8. Part-time Trend (d): Is the increase in part-time work (38.6%) a sign of flexibilization or hidden underemployment? How sustainable is this model for social insurance?

Sources

Primary Source: Swiss Labour Force Survey (SAKE) Q4 2025 – Press Release of the Federal Statistical Office

Verification Status: ✓ 17 February 2026

This text was created with the support of an AI model. Editorial responsibility: clarus.news | Fact-check: 17 February 2026