The Swiss temporary staffing sector saw a downturn with working hours falling by 4.5% in the first quarter of 2024 when compared to the same period of 2023, according to Swiss Staffing, the Swiss Federation of Staffing Companies.

Swiss Staffing stated, “The slowing economy is forcing staffing service providers to begin the year in the red.”

Meanwhile, the permanent market saw revenue fall by 6.3%.

The downturn in both the temporary and permanent markets is a clear sign of an ailing economy, according to the Federation.

“Companies' need for labour is falling,” Swiss Staffing stated. “A drop in orders means that they need fewer short-term staff and are delaying filling full-time positions.”

However, the research showed that specialists in occupations with shortages, such as computing, industry and health care, still have good prospects. Demographic and technological change are increasing demand in these sectors and changing job profiles at incredible speed.

Stephan Zehnder, country manager, Switzerland, at persona service GmbH, notes that the market in his sector is bleaker than last year.

"Whilst during last year's economic boom, companies were happy to make compromises in filling positions, they are now leaving vacancies unfilled for significantly longer,” Zehnder said. “They are waiting for the perfect person with all of the skills they need.”

“Companies are able to do this: the drop in order volumes is relieving the burden on current staff and making appointing new ones less urgent. The cooling economy is also getting the labour market moving. Various companies are therefore hoping to find the perfect fit for their vacancy, if they are patient enough,” Zehnder added.

Swiss Staffing added that planned projects are being delayed due to pressure to make savings and waning demand.

“The staff leasing sector is dragging,” Zehnder said. “Some of our clients have announced short-time working for their permanent staff. So it would be a paradox to expect more temporary staff to be recruited."

Marcel Keller, country president for Adecco Group Switzerland, said, "After a market slowdown in job growth during 2023, the job market experienced a further downturn at the beginning of 2024. Despite this development, the current situation on the labour market is still extremely positive compared to before the pandemic."

Looking ahead, Swiss Staffing pointed out a survey by gfs-zürich which showed that 41% expected the temporary sector to grow in the next six months (average on a long-term scale), but 15% expected the permanent market to grow, a comparatively low number.