The KOF Swiss Economic Institute, based in Zurich, published a research that gives not that much hope for the Swiss banking industry. In particular, this institute has developed an index of employment in Switzerland, which showed positive signs of recovery since the 4th quarter of 2015. At that time, the index was as low as -5.3, whereas it recovered slightly to -2.4, -2.2, and -1.2 in the 1st, 2nd, and 3rd quarters of 2016, accordingly. The index is based on the surveys of more than 4,500 Swiss companies, where they asked whether they will hire more people, dismiss some of the employees, or leave the number of employees unchanged during the following three months.
The end of the year appeared to be not so favorable for the conditions of employment in Switzerland, sending the index lower to -3.7. The primary cause of such a fall of the index is problems in the Swiss banking industry. After the rejection of Swiss authorities, caused by the pressure of the international community, to keep sticking to the banking secrecy, the money of corrupted officials, all kinds of smugglers, and tax cheaters flew to offshores, where it became at least somewhat safer to hold money.
The situation with the employment in the banking industry remains unclear and unstable. Since the year of 2012, the banking industry has been constantly cutting off workplaces in order to restructure the banks’ expenses. This situation will continue also in 2017, as significant layoffs are expected to take place in several major Swiss banks.
The banking sector keeps suffering from layoffs, but the other Swiss industries give more hope for growth
However, not solely the banking industry is curbing the growth of employment – the manufacturing sector has had a negative index for more than a year and seems it is stuck there for some time ahead as well. The reductions of workplaces, therefore, are expected to come again in this industry. There is no change expected in the sectors of insurers, wholesalers, and retailers, yet their index value keeps being in the negative territory.
The construction sector gives some signs of hope for the employment in Switzerland, since the expectations for employment in this industry were not as high as this industry proved to be. A higher-than-expected employment in the construction industry gave a boost to the sector of engineering, where firms try to get a firm hold in cooperation with construction companies.
With the sector of services accounting for more than 72% of the Swiss GDP, its share keeps growing in the background of problems in the manufacturing industry and despite the layoffs in the banking sector. More workplaces are expected to appear in social care, health care, education, communications technologies, and corporate consultancy during the following three months.
Therefore, if you want to come to Switzerland for a work, we highly recommend you to try to find employment in Switzerland in any of the above-mentioned industries, all of which are expected to grow at least during the following three months. At the same time, we also suggest you to try to take on a job in the remaining sector of service (except of the banking sector), but not to look for a job in the banking sector or manufacturing industry.