Swiss Staffingindex: staffing service providers see drop for third year in a row

Economic slowdown is impacting both the temporary and permanent employment markets. Staffing service providers are in negative figures for the first half of the year.

For the third year in a row, staffing service providers ended the first half of the year in the red. The number of hours worked by temporary workers fell by 8.8 percent during the first half of the year. The permanent employment market was down 22.8 percent compared with the previous year. The downward trend in both sub-markets has accelerated compared with previous years. Staffing service providers are suffering amidst the worldwide economic slowdown. Increased economic uncertainty in particular is having an impact on investment and the labor market.

The Swiss economy grew more slowly than the multi-year average. Export business was particularly affected. US President Donald Trump's tariff policy is casting a shadow over growth prospects. As a result, export-oriented companies are refraining from investment or recruitment. With a market share of around 28 percent, the staff leasing industry is heavily dependent on this sector's development. Oliver Rechsteiner, CEO of Universal-Job AG, notes: "The temporary and permanent markets are currently undergoing their heaviest period of consolidation in decades. Hiring companies are becoming increasingly cautious and picky. In many cases, they are only won over by top profiles." The Global Economic Policy Uncertainty Index compiled by Stanford and Northwestern University measures policy-related economic uncertainty based on media reporting and confirms the uncertainty noted by Rechsteiner: in the second quarter of 2025, the Index reached its highest ever point since records began in 1997.

Innovation in response to market decline

This difficult market phase requires staffing service providers to innovate. Using artificial intelligence, streamlining processes and employing new recruitment and sales channels are all methods helping staffing service providers to survive in a shrinking market. Rechsteiner: "Artificial intelligence is allowing staffing service providers to completely rethink their processes. This offers speed and quality advantages." The focus on innovation is key, and not just as regards competition with other staffing service providers. Many companies' internal HR departments are also modernizing. Temporary companies need to specialize even further in order to stay one step ahead of their customers. This need for investment in the face of market decline is posing a huge challenge for staffing service providers. At the same time, new technologies are providing a good foundation for successful innovation.

Outlook for the fiscal year

Future prospects remain restrained. Growth prospects for this year and next year were recently adjusted downwards by the State Secretariat for Economic Affairs. The slowdown trend is therefore likely to continue. One ray of hope is the domestic economy. Increasing demand for living space and the Swiss National Bank's latest interest rate cut are expected to boost construction activities. The construction sector is the second-largest sales market in the staff leasing sector, with a market share of 21 percent. Positive impetus from this sector is unlikely to put market development back in the black this year, but may slow the downturn.

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