The average unemployment rate in Switzerland for 2023 stood at 2%, corresponding to a decrease of 0.2% compared to 2022 (2.2%), according to the latest labour market release by the State Secretariat of Economic Affairs (SECO).

The 2.0% rate was the lowest rate since 2001.

Throughout the year, SECO noted the positive labour market development of the previous year continued at the beginning of the year before a gradual normalisation occurred from March 2023. The seasonally adjusted unemployment rate increased moderately over the year from 1.9% (January 2023) to 2.2% (December 2023).

The annual average number of unemployed people for 2023 is 93,536, 6,041 people (-6.1%) lower than in 2022.

From January 2023 onwards, the number of registered unemployed fell continuously, based on an already below-average initial level in recent years (100,776 people). In July 2023, the number of unemployed people increased again for the first time in the year, on the one hand as a result of the trend reversal and on the other hand also for seasonal reasons. At 106,859, the number of unemployed people at the end of December 2023 was 9,918 or 10.2% higher than in December 2022.

The average number of job seekers in 2023 is 160,087, significantly below the average value from the previous year (-15,462/-8.8%). The monthly numbers of job seekers developed similarly to the unemployment numbers in 2023. At the end of December 2023, the number of job seekers was 176,979, 9,075 or 5.4% higher than a year earlier.

The amount of short-time work compensation (KAE) paid declined significantly compared to the previous year. The last time such low values ​​were achieved was before the start of the Covid-19 crisis.

SECO noted that despite a slight decline in demand for labour, many companies are still reporting difficulties in recruiting skilled workers. While the economic-related shortage is likely to decrease somewhat, structural causes of the shortage of skilled workers remain relevant. 

More people in Switzerland are currently leaving the labour market through retirement than young workers are entering the labour market.