Publication date: Press release published on November 24, 2025
Executive Summary
The Swiss economy shows clear signs of a cooling labor market: With minimal employment growth of only 0.1% year-on-year and a decline in job vacancies by 10.5%, a significant slowdown in labor market dynamics is emerging. While recruitment problems for skilled workers are decreasing, employment prospects remain stable despite dampened company expectations, indicating a controlled downturn rather than an acute crisis.
Critical Guiding Questions
- To what extent could the current slowdown in the labor market offer an opportunity to advance structural adjustments for increased productivity and innovation?
- Which industries are particularly affected by the decline in job openings and what impact does this have on Switzerland's competitiveness?
- How should businesses and policymakers respond to this end of the "War for Talent" - with restraint or countercyclical investments in human capital?
Scenario Analysis: Future Perspectives
Short-term (1 year): The slowdown is likely to continue with an increasing unemployment rate of 0.3-0.5 percentage points. Companies will become more selective in hiring and intensify efficiency measures. Wage dynamics will weaken.
Medium-term (5 years): The labor market could undergo a structural adjustment, with the focus shifting from quantitative to qualitative growth. Industries with high added value and future orientation are likely to recover more quickly, and new employment models could become established.
Long-term (10-20 years): Demographic developments will drive the labor market back toward a shortage of skilled workers, unless substantial productivity improvements or immigration adjustments take place. Companies that now invest in talent development and automation could gain structural competitive advantages.
Main Summary
Core Topic & Context
The current development marks a significant cooling in the Swiss labor market after years of robust employment growth. This trend reversal coincides with a general economic slowdown in Europe and geopolitical uncertainties.
Key Facts & Figures
- Employment growth of only 0.1% year-on-year (Q3 2024 to Q3 2025)
- Seasonally adjusted decline of 0.1% compared to the previous quarter
- Job vacancies: decrease of 10.5% year-on-year
- Decreasing recruitment difficulties for skilled personnel
- Stable but dampened employment prospects for companies
Stakeholders & Affected Parties
- Employees face a weaker labor market with fewer job change opportunities
- Employers benefit from more relaxed recruitment conditions and potentially lower wage pressure
- Educational institutions and labor market authorities need to adapt to changing qualification requirements
- Political decision-makers face the challenge of ensuring economic stability
Opportunities & Risks
Opportunities:
- Relief from skilled labor shortages and wage pressure
- Time for structural adjustments and efficiency improvements
- Opportunity for companies to attract qualified employees
Risks:
- Risk of a self-reinforcing economic cooling
- Loss of professional competencies through emigration or industry changes
- Declining consumer confidence due to job insecurity
Action Relevance
Companies should use the situation for strategic personnel planning and invest in employee qualifications. Policymakers are called upon to strengthen structural competitiveness through education and innovation promotion, while preparing countercyclical measures should the cooling intensify.
References
Primary source:
Employment Growth Stagnates in the 3rd Quarter of 2025
Verification status: ✅ Facts based on the press release of the Federal Statistical Office (FSO)