Swiss unemployment remains unchanged in July, in line with market consensus

The Swiss unemployment rate remained unchanged during the month of July remained unchanged, largely in line with what the markets had earlier expected.

The seasonally-adjusted Swiss unemployment rate was unchanged at 3.3 percent for July and in line with market expectations, while the unadjusted rate was also unchanged at 3.1 percent for the month after a small nominal increase in the jobless total for the month.

Moreover, the number of job seekers declined for July, although there was a 4.4 percent increase from the previous year, while there was a decline in the number of reported vacancies, which will cause some concerns over potential unemployment trends over the remainder of 2016, reports said.

While youth unemployment rose 8.3 percent on the month on seasonal grounds, there was a decline of 0.4 percent over the year. The adjusted rate of unemployment remained unchanged from the previous year having edged lower from a peak of 3.5 percent seen during the second quarter of 2016.

Meanwhile, the Swiss National Bank is expected to monitor labor markets closely and any vulnerability is seen as a further indication of an over-valuation in the Swiss franc. The latest data will offer some reassurance that companies are not cutting employment rates aggressively in an attempt to keep labor costs under control and maintain competitiveness.