Switzerland’s labour market looked both buoyant and brittle in the second quarter of 2025. Employment edged up, but unemployment did too, according to a report published by the Federal Statistical Office this week.
The number of people in work rose by 0.6% year on year to 5.36m, according to the Federal Statistical Office. Adjusted for full-time equivalents, the increase was 0.5%. Seasonally, employment was flat compared with the first quarter.
The gains came almost entirely from abroad. Foreign workers rose by 2.3% to 1.87m, led by those with residence permits (+5.6%) and cross-border commuters (+1.7%). Short-term residents fell by 6.1%. By contrast, Swiss nationals in work slipped by 0.3% to 3.49m. Women’s employment grew faster (+0.8%) than men’s (+0.4%).
Yet joblessness also crept up. Measured by the International Labour Organisation definition, unemployment reached 4.6%, up from 4.0% a year earlier. Some 237,000 people were unemployed, 34,000 more than in 2024. Both men (3.8% to 4.6%) and women (4.2% to 4.6%) were hit. Youth unemployment climbed sharply, from 5.9% to 7.6%, though that remains well below the EU average of 14.6%.
The official rate, which counts only those registered as jobless, stood at 2.7% at the end of July, presenting a flattering view of reality.
Still, the paradox of rising employment alongside rising unemployment hints at a labour market in flux—kept afloat by foreign workers but struggling to absorb the young.
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