Swiss Staffingindex: slowdown continues

The staffing service provider market is being hit by economic downturn and the tariff shock, putting temporary work and permanent job placements in the red.

The slowdown in the Swiss economy is impacting the Swiss Staffingindex. The number of Hours worked by temporary workers in the 3rd quarter was 6.1 percent lower than in the previous year. The number of permanent job placements fell by 28.9 percent. This decline is due to the weakening global economy. The development has been intensified by the tariff shock and the difficult economic situation in Germany.

Swiss industry is suffering from the global economic downturn. For the staff leasing sector, this means fewer peaks for corporate clients, lower staffing requirements, and thus reduced demand for temporary staff. The permanent staffing sector has been even more heavily affected. Ramon Gut, CEO of Impirio AG, noted: "Corporate clients are initially turning to temporary workers when the need arises. Economic uncertainty has lengthened decision-making processes for permanent positions. Companies have become cautious." However, not all sectors have been equally affected. Ramon Gut: "Demand for temporary workers in the construction sector remains stable and is a key pillar." The need for renovations and new living spaces is robust. The staff required are also being provided by staffing companies.

Decline reaches IT sector

The leasing of highly qualified temporary workers has also seen a downturn. Mario Kaufmann, owner of Vangard AG, specializes in placing SAP specialists. He observed: "Demand for SAP specialists has fallen again after the tariff shock. Market leaders and niche providers are taking advantage of the new market situation to recruit scarce specialists." IT projects are also seeing companies wanting to cut costs and reorient before making new investment. The decline (which had already begun before the tariff shock) is a new development for the IT sector, which has enjoyed an upward trend for several years.

Downturn boosts staff Retention

The economic downturn is also perceptible with regard to candidates. Once again, there are increasing numbers of applications from job seekers who have recently lost their jobs. These are looking for staffing service providers to help them re-gain a foothold in the labor market. At the same time, specialists are reluctant to change jobs. Ramon Gut understands: "Employee loyalty is higher than ever. Workers trust that they will be able to survive these uncertain times with their employer." Conversely, seizing new opportunities has become less attractive, making it harder for companies to fill vacancies.

Outlook

The economic situation in Switzerland remains challenging. Nevertheless, there are some positive indications from core staff leasing sectors, such as construction. In addition, temporary work offers companies flexibility in difficult times. As a result, we can expect to see the downturn slowing and bottoming out in the coming months.

 

For further information, please contact:

Dr. Marius Osterfeld, Head of Economics & Politics
Tel.: 044 388 95 70 / 079 930 45 25
marius.osterfeld@swissstaffing.ch

Celeste Bella, Head of Marketing & Communications
Tel.: 044 388 95 65 / 079 388 94 22
celeste.bella@swissstaffing.ch