Staffing providers in Switzerland concluded the third quarter of 2023 with a 7.6% decrease in temporary staffing working hours compared to the previous year, according to the latest Swiss Staffing index.

The combination of labour shortages and a slowing economy has made life difficult for staff leasing companies, Swiss Staffing stated. It added that there are no suitable candidates to fill vacancies, order volumes in the industry are decreasing, and with them, the demand for temporary workers.

However, business is running smoothly for permanent positions. Due to the dried-up labour market, companies lacking skilled workers are seeking assistance from staff leasing providers, which is boosting turnover. Revenue in the permanent market saw a 6.8% increase over the year in Q3 2023.

Marius Osterfeld, an economist at Swiss Staffing, noted, "Although redundancies are difficult for those affected in any situation, the starting point for people seeking jobs remains ideal despite the economic downturn."

Looking ahead, Switzerland has performed well in the face of economic challenges. The labour market has provided stability, supporting domestic consumption. Issues with supply chains and primary product price levels have also been alleviated somewhat, laying the foundations for recovery.

Swiss Staffing added that geopolitical risks remain significant and the conflicts in Israel and Ukraine offer potential for ‘unwelcome surprises’.

Meanwhile, the CEOs of staffing companies in Switzerland remain more pessimistic than in the past. Just 23% of them expect business to increase in the next six months while 43% expect to see stagnation.